Indiana Department of Insurance’s Title Division recently sent the following “word of caution” to all licensed title insurance agents about the restrictions on Provider Preferred Programs. Considering the increased oversight of these types of interactions, at both the State and Federal level, I think it is worth repeating to all in the Indiana real estate world.
Currently, Provider Preferred Programs offered by Lenders and Realtors, may be an acceptable offering under those Indiana regulators DFI and PLA respectively, however, title agencies belonging to those programs are considered to be engaging in forms of inducement of title business, as explained in IDOI Bulletin 158 dated 11/7/2007. In most cases, this particular practice may have gone unaddressed in terms of fines and penalties, however, the Department’s position on this matter has been communicated and those in violation will receive fines/penalties levied accordingly. Title agencies/agents engaging in the following practices are considered to be Continue reading