Shockwaves reverberated throughout the title insurance industry on April 7, 2023, as Fidelity National Title Group, a leading title insurance company, was hit with a staggering $3.5 million fine by the New York Attorney General Letitia James for illegal “no poach” agreements. The alarming announcement stirred the real estate industry, leaving many to wonder what other companies might be engaged in similar illegal activities.
Details:
The Attorney General’s investigation found that Fidelity National, along with other title insurance companies, were involved in anti-competitive practices that included non-solicitation and no-hire agreements often combined with non-compete clauses. These practices prevented employees, such as title agents, escrow officers, and closers, from changing jobs and restricted their ability to seek better opportunities, leading to lower wages and reduced competition in the industry.
The investigation revealed that Fidelity National had entered into agreements with competitors, promising not to recruit or hire each other’s employees, a clear violation of antitrust laws. These illegal practices were in place from at least 2014 to 2018, with the consequences being felt industry-wide.
Impact:
The news of Fidelity National’s illegal “no poach” agreements caused a seismic shift in the title insurance industry, leaving many questioning the integrity of the industry as a whole. The use of such anti-competitive practices not only hinders innovation and employee advancement, but also artificially suppresses wages, reducing competition and ultimately hurting consumers.
What You Can Do:
If you are looking to buy or sell real estate, it is essential to partner with a title insurance company that values integrity and transparency above all else. At Appellate National, we prioritize providing comprehensive title insurance services that protect your investment and ensure a fair and competitive market. Our team of experienced professionals is dedicated to ensuring that your transaction is free of legal complications and that your investments are secure. Don’t take chances with your real estate investment; partner with Appellate National for peace of mind and the confidence that your investment is in good hands.
Appellate National Title is a world class Title Insurance Agency who specialize in title insurance and settlement services nationwide. Driven by a passion for innovation, we utilize cutting-edge technology, local expertise and national services to provide the highest quality experience. Our results driven methodology and customer-focused closing services have set an industry-wide standard of excellence and secured our place as market leaders. With Appellate National, you’re not just getting a partner, you’re getting a team of dedicated professionals who are passionate about your success. Contact us or place an order today and experience the difference!