May 23, 2006
First American to pay $2 mln fine after N.Y. probe
NEW YORK (Reuters) - First American Corp. unit First
American Title Insurance Co. of New York said on Tuesday it
agreed to pay a $2 million fine and change its business
practices to resolve state regulatory issues about title
insurance in New York.
First American, which acknowledged no wrongdoing in the
settlement -- announced by New York Attorney General Eliot
Spitzer earlier -- said it agreed to reduce its title insurance
rates by about 15 percent for property purchases up to $1
million, pending a review by state regulators by year-end.
It also said it agreed to modify what it said were "several
long-standing, industry wide practices," following an
investigation by the New York State Attorney General and the
State Insurance Department.
First American said it does not expect the fines or rate
reductions to have a material impact on earnings.