Peter Birnbaum, chairman of Advocus, criticizes Illinois' regulatory environment for title insurance, highlighting a significant drop in enforcement and oversight from the IDFPR. He notes that while the department generates millions from the industry, it lacks resources, resulting in unchecked unethical practices, including inflated closing fees passed to consumers. Historical reports, such as a 2007 GAO study, have flagged similar issues, indicating persistent concerns regarding regulatory adequacy in protecting consumers from excessive pricing and bad business practices in the state's title insurance sector.
"Over the last 10 to 15 years, the IDFPR's willingness to engage and take on some of these bad actors has dissipated to the point where they literally do nothing."
"Bad behavior is usually passed along to the consumer in the form of higher prices...Homebuyers faced closing fees that were $500 to $1,000 higher than market rates due to such arrangements."
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