Search
 

HUD Shuts Down `Sham' Title Companies

WASHINGTON - The Department of Housing and Urban Development reached settlement agreements involving alleged violations of the Real Estate Settlement Procedures Act (RESPA) that included sham title companies, free for-sale home virtual tours, and online mortgage-related kickbacks. The cases involved a wide variety of business practices that violate RESPA's anti-kickback...

By Staff Writer | Updated on August 19, 2003

WASHINGTON – The Department of Housing and Urban Development reached settlement agreements involving alleged violations of the Real Estate Settlement Procedures Act (RESPA) that included sham title companies, free for-sale home virtual tours, and online mortgage-related kickbacks. The cases involved a wide variety of business practices that violate RESPA’s anti-kickback and unearned fees provisions. Section 8 of RESPA prohibits a person from giving or accepting anything of value in exchange for the referral of settlement service business and prohibits a person from giving or accepting any part of a charge for services that are not performed. Business practices that are intended to skirt the anti-kickback provisions of RESPA will not be tolerated, said HUD Assistant Secretary for Housing – Federal Housing Commissioner John Weicher in announcing the settlement agreements. HUD determined that TitleVentures.com, a title insurance agency in Kingsport, Tenn., established bogus title insurance companies for the purchase of paying kickbacks to real estate and mortgage brokers in five states for the referral of title business. The states, according to HUD, were North Carolina, South Carolina, Tennessee, Georgia, and Ohio. Real estate agents for Coldwell Banker United and Coldwell Banker Richard Smith Realtors accepted free Internet-based virtual home tours from title companies in the Austin, Texas area in exchange for the referral of business.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2024 ALM Global, LLC. All Rights Reserved.