(2) Other illegal payments
No deduction shall be allowed for any payment made, directly or indirectly, to any person, if the payment constitutes an illegal bribe, illegal kickback, or other illegal payment under any law of the United States, or under any law of a State (but only if such State law is generally enforced), which subjects the payor to a criminal penalty or the loss of license or privilege to engage in a trade or business. For purposes of this paragraph, a kickback includes a payment in consideration of the referral of a client, patient, or customer.

http://seattletimes.nwsource.com/html/businesstechnology/2003855843_webstewart27.html

Let’s be honest…Brokers and Realtor’s ask for these incentives. They make it abundantly clear that if you (the title company) aren’t willing to give it to them then they will take their business elsewhere. Some will go as far as to forbid a title company that won’t participate from even stepping in the door of their office.

If the Insurance Commissioner doesn’t have the authority to enforce it then someone does and the commissioner, I’m sure, has their ear.

I’m not going to hold my breath that anything of substance will be done against the offending real estate companies. The Washington Association of Realtors (WAR), like many other states is a powerful political force.

Net result – Consumer Gets Screwed!!!

A state insurance commissioner has no authority over a real estate agent’s acceptance of the kickbacks, which is likely a section 8 RESPA violation, a federal law.

That jurisdiction is HUD.

Yes, I completely agree.