January 29, 2021 - ORANGE, Calif. — First American Title Company has agreed to pay the California Department of Insurance $50,000 to resolve allegations that one of its employees violated 
state law that protects consumers from conflicts of interest in real estate transactions.
An investigation by the Department revealed that Steven Patrick Thomas, a representative employed by First American Title Company in Santa Ana, owned a separate business with a direct connection to the real estate industry. Using the name “Reports on Housing,” Thomas allegedly provided housing market information not related to title insurance to real estate agents.
Under the anti-inducement provisions of the California Insurance Code, a title insurance representative cannot own, be employed by, or otherwise be affiliated with a business or entity that provides real estate services to anyone considered a property owner or real estate agent.
An unlawful inducement occurs when a lender or real estate agent receives free or discounted services, property, or money in exchange for steering business to a title company. Such rebates act to inflate title insurance premium rates for all consumers. Thomas’ alleged violation is considered an inducement and is prohibited under the California Insurance Code.
The agreement included a $25,000 penalty to resolve the enforcement action and $25,000 for recovery of the Department’s investigative costs.
In a separate agreement with the Department, Thomas will not market title insurance in California.
- Stipulation and Waiver – First American Title Company
- Stipulation and Waiver – Steven Patrick Thomas
Source: CA. Dept. of Insurance
