California Title-Insurance Fraud Lawyers

It has recently come to light that title-insurance fraud activities have been taking place in California among some popular home builders and real-estate companies. There have been allegations of kickback arrangements between home builders, lenders and real estate agents who refer all of their title insurance business to a specific title insurance company. If that company in turn reinsures the title policy with the subsidiary owned by the home builder, lender, or agent, it is illegal.

The following article from the Wall Street Journal uncovers the investigation into these fraudulent activities:

California's insurance commissioner has issued subpoenas to six home builders as part of an investigation into illegal kickbacks in the title-insurance industry.

Insurance Commissioner John Garamendi served subpoenas to William Lynn Homes Inc., KB Home, Re/Max International Inc., United Home Mortgage Corp., Shea Financial Services and Wells Fargo Home Mortgage, a unit of Wells Fargo & Co.

The subpoenas follow others Mr. Garamendi issued in February to Fidelity National Financial Inc. and LandAmerica Financial Group Inc. He said there would be more, leading up to a scheduled public hearing April 4 in Los Angeles.

Mr. Garamendi and insurance regulators in Colorado and Washington state have been investigating a series of "reinsurance" contracts between title companies and subsidiaries of developers, lenders and real-estate agents. In the alleged kickback arrangements, home builders, lenders and real-estate agents would refer all of their title-insurance business to a specific title company if that company agreed to reinsure the title policy to the subsidiary owned by the home builder, lender or agent.

Wells Fargo denied it had participated in kickbacks. "Wells Fargo does not participate in the activities alleged by California's insurance commissioner," the company said. "We do not use any title underwriter on an exclusive basis, nor do we have any contractual provisions guaranteeing any future business for any title underwriter."

The Law Offices of Nadrich & Cohen, LLP has recovered over $75 million on behalf of our seriously injured and defrauded clients. Our law firm has the necessary skills to represent your title-insurance fraud matter, and we have represented investors who have been the victims of financial fraud and scams. We are an aggressive law firm with lawyers who are passionate about protecting your rights. The Law Offices of Nadrich & Cohen, LLP has a Corporate Office located in Los Angeles, and offices located in San Bernardino, Riverside and the San Francisco Bay area for your convenience.

If we can help you or if you have any questions; call today, (800) 718-4658, or e-mail, info@personalinjurylawcal.com.