Title Insurance Inquiry Broadened

Insurance Commissioner John Garamendi said today that his office was expanding the investigation into kickbacks in the title insurance industry, including a number of firms that do business in the greater San Fernando Valley area. Garamendi said his office served subpoenas to William Lyon Homes, KB Home, Re/Max, United Home Mortgage Corp., Shea Financial Services and Wells Fargo Home Mortgage, in addition to LandAmerica and Fidelity National Title, which had received subpoenas in February. Additional companies are expected to be subpoenaed in the investigation, which involves the practice of paying companies to refer business to a specific title insurer. A hearing is scheduled for April 4 in Los Angeles in which executives of LandAmerica and Fidelity, companies which the department of insurance says controls 45 percent of the California market, are scheduled to testify.