HUD and the Department of Justice continued their Respa enforcement crackdown by filing suit against one title company and reaching settlement agreements with 58 Philadelphia real estate brokers, title companies and attorneys for Respa violations. But while both agencies are turning up the heat on investigation into controlled business arrangements, the growing cry from the industry is that their actions are both superficial and unnecessary.
The 58 settlements netted approximately $500,000 in refunds to consumers, consumer education and penalties. Both HUD and Justice alleged that those companies either received or paid illegal kickbacks in exchange for title insurance referrals. Most of the settlements ranged from a few hundred to a few thousand dollars, HUD said.