Homebuyers Victims of Fixed Prices By Insurers, Says Class

BROOKLYN (CN) - The nation's four largest title companies fix prices for title insurance, costing homebuyers millions of dollars a year, a class-action complaint claims in Federal Court for the Eastern District of New York.

Fidelity National, First American, LandAmerica, and Stewart title companies and their affiliates fix rates in New York through the Title Insurance Rate Service Association, which they formed with other, smaller conspirators in 1991, the complaint states.

The "Fidelity family" of title insurers controls 31 percent of the New York market ($361 million) and 27 percent of the national market ($4.6 billion). It include defendants Fidelity Title, Chicago Title, Ticor Title Insurance and their affiliates, the complaint states.

The "First American family" controls 25 percent of the New York Market ($290 million) and 29 percent of the national market ($4.8 billion), the complaint states. It includes defendants First American Title and United General Title.

The "LandAmerica family" controls 22 percent of the New York market ($258 million) and 19 percent of the national market ($3.15 billion), the complaint states. It includes defendants Commonwealth Land Title Insurance Co. and Lawyers Title Insurance Corp. and affiliates.

The "Stewart family" controls 14 percent of the New York market ($168 million) and 12 percent of the national market ($2 billion), the complaint states. It includes defendants Stewart Title and Monroe Title and their affiliates.

See complaint.

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