First American cuts loose 84 Affiliates under State Settlement Agreement

Florida’s Chief Financial Officer has announced that First American Title Insurance Co. must sever its business relationship with 84 limited partnership title-agencies in Florida and have its business activities closely monitored for one year.The agreement also requires First Am. to pay $5 million in penalties and costs to settle charges that it paid kickbacks to builders, bankers, real estate agents and brokers for referral business.

The settlement agreement follows a yearlong investigation by federal and state agencies — the U.S. Department of Housing and Urban Development, the state Department of Financial Services and the Office of Insurance Regulation. They found First American in violation of the Florida Insurance Code and federal law.

Future of the 87 affiliates is unknown.