Banning affiliated business arrangements in title insurance will likely inject healthy competitive market forces into the title insurance marketplace and isolate important title and closing decision making processes from the influences of financially interested transaction service providers. In addition, the current 1-year statute of limitations restriction on enforcement actions against bad actors who engage in illegal kickback activities is inadequate to deter malfeasance. Extending this “look back” period to three years will likely have a beneficial impact on deterring illegal kickbacks.
We hope that the wisdom of this proposed Act will be perceived to be beneficial by both political parties. CAARE is available to provide insight, education, and research to help anyone who is considering this issue.