Yep, it's true. Just as stock brokers were investigated and prosecuted, and mutual fund companies weren't far behind, now title companies are being caught in an audit web. Remember that the majority of business for title companies comes from real estate brokerages and/or individual agents. Hence, title companies are more than willing to help sponsor real estate events (such as annual awards banquets), and will throw parties and invite the real estate community. However, according to the investigators, actual rebates were paid in direct referral agreements. It's gone nationwide, but Colorado companies were the first to be named in an investigation by Colorado Insurance Commissioner Doug Dean. So, if you were anticipating a purchase of a SnowHome, for example, in Summit County, or a refinance of your existing home, you might be concerned that you are being overcharged for your title insurance or otherwise defrauded. So, let me set the record straight, at least from my perspective. Neither I individually, nor our Team has been contacted by any title company with which we do business in Summit County with an offer of any rebate or other consideration for sending business to that company. We have never taken a rebate, or even discussed such a situation. In fact, in spite of my years involved on our board, including my stint as president, I have never heard any rumor or suggestion that any title company was playing this game here. I can't say unequivocably that this has not gone on. But I'd certainly be surprised if it were. Perhaps it's because we are a relatively small community, and it would be too difficult to keep something like that a secret. Or, perhaps I'm just too disinterested to notice. At any rate, if the state or federal investigation extends here, we will all at some time know for sure. But, in my opinion, you can do real estate business in this County safely, at least from the point of view of title insurance. And, I would hope you will feel that the SnowHome Team is above reproach. We are. |
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