Wednesday, December 20, 2006

LandAmerica Title Guilty of Poor Judgement

Ok, let me see if I have this correct. LandAmerica Financial Group, Inc. known as LandAmerica Title Insurance Company among other entities in Colorado is under investigation by the Colorado Insurance Commission in part resulting in a Cease and Desist Order on March 4, 2005 and a Stipulation for Entry of Final Agency Order on August 23, 2006. Rather than looking inward at business practices present in violation of RESPA Section 8, the company endeavors to pursue a smear campaign against Erin Toll who at the time served as Colorado Deputy Insurance Commissioner. Ms. Toll presently serves as Colorado Real Estate Division Director.

See the Documents: LandAmerica Title (Commonwealth Land Title Insurance Company, Lawyers Title Insurance Company, and Transnation Title Insurance Company)
Cease & Desist Order
Stipulation for Entry of Final Agency Order
You may contact LandAmerica at 866-526-3264 for more details on eligibility in relation to captive reinsurance.
(Sources: http://www.dora.state.co.us/insurance/enforcement/2005/O05-155.pdf and http://www.dora.state.co.us/insurance/enforcement/2007/O07-017.pdf )

This is troubling and calls in to question the integrity of a company who is entrusted with the funds of property owners and home buyers across Colorado. According to a story published in the December 20, 2006 edition of the Rocky Mountain News, the House Committee on Financial Services concluded in its 37 page report that LandAmerica Financial executives threatened to get “real stinky real quick” in referenced to an effort to discredit Toll and members of her family. The allegations were investigated and found to have no merit according to David Rivera, Colorado Insurance Commissioner.

Read the full Report: http://financialservices.house.gov/media/pdf/12-18-06%20Land%20America.pdf

Our firm (Private Mortgage Banking Branch of Cherry Creek Mortgage, Inc.) had been approached numerous times during the period August 2004 and January 2005 by companies seeking a title reinsurance controlled business arrangement. I investigated one such offer carefully concluding that such an arrangement would be a violation of RESPA Section 8 and declined to participate.

Bottom Line: I applaud the efforts of Erin Toll with support of the Colorado Division of Regulatory Agencies. She did an outstanding job in cleaning up illegal practices in the title industry and she aims to do the same in the appraisal industry. Rather than attack her personally, the collective real estate and mortgage industries should band together with our support.

3 comments:

Diane Cipa, The Closing Specialists® said...

I applaud your decision to pass on the reinsurance ABA scam. What were these title insurance underwriters thinking? I am happy to see an honest pro making his own decision about the legitimacy of such a venture.

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