Florida's Chief Financial Officer has warned title insurance agents to earn their business the old-fashioned way, or risk losing their right to do business in Florida altogether.

Tom Gallagher, who oversees the Department of Financial Services, said an agent who accepts a kickback has an incentive to be less than fully open about all of a consumer's options.

"It is blatantly unfair for consumers to get the short end of the stick when they are making one of the largest purchases in their lives," he added.

The Department of Financial Services, which regulates title insurance agents, and the Department of Business and Professional Regulation, which regulates real estate agents, said they have both noted an increase in recent months in the number of complaints regarding title insurance agencies paying financial "kickbacks" to real estate agencies or mortgage brokers in exchange for referrals.

To date, DFS said it has taken action against two title insurance agencies and an agent. The department said it issued Brokers Title of New Tampa a $10,000 fine and ordered the group to repay more than $31,000 in improperly collected funds and put on probation for one year.

Investigators said they determined title agents with Brokers Title were providing kickbacks under the guise of an affiliated business.

Also, the department said it fined First Southwestern Title Company of Florida and principal agent Anita Coleman Dana of Maitland each $2,500 and were put on probation for one year.

Gallagher and Kevin McCarty, director of the Office of Insurance Regulation, jointly issued a bulletin to all insurance companies and agents selling title insurance outlining circumstances under which a title insurance agent would be in violation of Florida's anti-kickback laws.

Examples of what title insurance agents are prohibited from doing for realtors include: printing or paying for the cost of printing advertising materials; furnishing or paying for office equipment; providing or paying for cellular phones; providing or paying for fuel for vehicles; sponsoring, hosting or paying for open houses; and paying real estate agents to fill out processing forms in exchange for contracts.

"We are working closely with the Department of Business and Professional Regulation to prevent unfair competition in the real estate and title industries," Gallagher said.

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