Tower City Title settled a federal class action lawsuit filed by Housing Advocates, a non-profit corporation. Housing Advocates claimed that Tower City title violated RESPA by paying illegal kickbacks to mortgage brokers, in exchange for business referrals. The complaint also alleged negligent misrepresentation, violation of the Ohio Consumer Sales Practices Act and civil conspiracy. Tower City maintains that they were paying the mortgage brokers for marketing services, and the deals were legal. Housing Advocates is investigating other title companies for similar violations. Source: Title Firm Settles Suit on Broker Payments by Thomas Ott, The Plain Dealer, Apr. 27, 2007.
The case is Shahan et al v. Tower City Title Agency, Inc. et al, Northern District of Ohio Case No. 1:05-cv-01983. Former Cuyahoga County Common Pleas Court Judge Burt W. Griffin served as mediator. The documents in the case, including motions for summary judgment, can be viewed at the ND Ohio ECF System. To view the complaint: Download housing_adv_complaint .