Office of the Assistant Secretary for Housing-Federal Housing Commissioner; Real Estate Settlement Procedures Act; Statement of Enforcement Standards: Title Insurance Practices in Florida; RESPA Statement of Policy 1996-4

Résumé

This Statement advises the public of the enforcement standards HUD applies to determine whether certain practices involving title insurance companies and title insurance agents comply with the Real Estate Settlement Procedures Act (RESPA). Although this Statement specifically addresses issues and practices that HUD reviewed in the State of Florida, its general principles may apply by analogy to other geographic and settlement service areas. This Statement discusses HUD's interpretation of two exceptions: Section 8(c)(1)(B) involving ``payments of a fee by a title company to its duly appointed agent for services actually performed in the issuance of a policy of title insurance;'' and Section 8(c)(2) involving the ``payment to any person of a bona fide salary or compensation or other payment for goods or facilities actually furnished or for services actually performed.'' HUD is publishing this Statement to inform the public of its interpretation of the law.