Santa Ana-based title insurance giant First American Title Co. and one of its title insurance marketing representatives agreed to pay a $50,000 penalty to the California Department of Insurance because the employee was simultaneously providing title insurance services while running a well known real estate data firm.
Steven Thomas of Ladera Ranch is the author of Reports On Housing, which provides twice-monthly market reports on Southern California home listings and sales.
Neither Thomas nor First American could be reached for comment.
Thomas, a licensed real estate broker, started Reports On Housing in 2004 while working in a Re/Max brokerage owned by his father, former National Association of Realtors President Gary Thomas.
Thomas went to work in the title insurance business after his father’s business declared bankruptcy, a victim of the 2008 housing market crash.
Thomas sells subscriptions to his data reports, according to his website.
The report is widely quoted by agents in their blogs and newsletters. He also speaks about market trends at real estate conferences and provides complimentary data to the news media, including the Southern California News Group, which use his reports and comments in their real estate coverage.
A state insurance department release said Thomas’ moonlighting as a market analyst violates “anti-inducement” provisions of the state Insurance Code.
The code prohibits title insurance representatives from offering real estate services to property owners or agents.
“An unlawful inducement occurs when a lender or real estate agent receives free or discounted services, property, or money in exchange for steering business to a title company,” the news release said.
The insurance department couldn’t be reached to explain how Thomas or First American violated the inducement provisions.
Thomas and First American didn’t admit any liability or wrongdoing, an insurance department stipulation said.
Source: Orange County Register
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