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Thursday, Mar 28, 2024
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First American Settles Charges

Santa Ana’s First American Corp. was among three title insurers that agreed to pay $37.8 million to settle charges that they paid kickbacks to homebuilders in exchange for business, California Insurance Commissioner John Garamendi said Wednesday.

The settlement calls for First American to pay $20 million, Jacksonville, Fla.-based Fidelity National Financial Inc. to pay $13.3 million and Richmond, Va.-based LandAmerica Financial Group Inc. to pay $4.5 million.

Garamendi said the trio cost home buyers about $25 million because of the kickbacks. Buyers will be reimbursed as part of the settlement, with First American paying $15 million in refunds and $5 million in penalties.

First American earlier this year reached a settlement with the Colorado State Division of Insurance, agreeing to refund $24 million to customers. In that case, the company was accused of overcharging customers.

Last week the company agreed to pay $685,000 to settle charges from the Department of Housing and Urban Development over alleged kickbacks to homebuilders in Tennessee.

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