Hagens Berman Solbol Shapiro Investigations
Title Insurance - Refinance Scheme
Date Started: May 15, 2008
Hagens Berman Sobol Shapiro is investigating a dozen title insurance companies concerning the pricing and practice of selling higher rate title insurance to refinance customers.
Claims suggest that these companies failed to disclose to refinance customers that cheaper title rates are available, instead charging higher rates unless the customer asked. These companies are relying on the inability of the customer to know the lowest filed rate to which they are entitled, allowing the companies to systematically overcharge customers.
Title insurance, unlike auto or home insurance, is removed from the traditional competitive process because consumers exercise little discretion when choosing a title insurer. Typically, a recommendation is made from a lawyer, broker, lender or realtor and there is no negotiation of price.
The investigation is looking into real estate transactions from 1947 until present. The companies under investigation include:
- Fidelity National Financial
- Fidelity National Title Insurance
- Ticor Title Insurance
- Chicago Title Insurance
- The First American Corporation
- First American Title Insurance Company
- Pacific Northwest Title Insurance Company
- Land American Financial Group
- Commonwealth Land Title Insurance Company
- Lawyers Title Insurance Corporation
- Transnation Title Insurance Company
- Stewart Title Guarantee Company
