California’s Insurance Commissioner John Garamendi is investigating two real estate title insurers and the perks they receive. The investigation was spurred by consent agreements signed by the companies with the Colorado insurance regulator.

“These kickbacks are illegal under state and federal law,” Mr Garamendi said. “Nevertheless they were used to fleece homeowners of vast sums – often more than $1000 per home.”

Mr Garamendi has subpoenaed the companies to appear at a public hearing on April 4 and provide his office with information on the situation.