The Michigan Department of Insurance and Financial Services (DIFS) has issued summary suspensions against Peak Title of Michigan Inc. and Peak Title Agency Co., citing allegations of mishandling funds and operating trust accounts with a negative balance.
According to the regulator, both companies allegedly failed to properly manage escrow accounts used for real estate transactions. DIFS stated that the action was taken to prevent consumer financial harm.
“Consumers should feel confident that their title agency is compliant with the law, maintains proper safeguards, and protects customers’ funds,” said DIFS director Anita Fox (pictured above). She added that the department’s investigation determined immediate action was warranted.
The DIFS began its review after receiving complaints from consumers who had deposited funds into escrow accounts controlled by the companies but were later informed that taxes, utility bills and liens had not been paid.
Although structured as separate entities, the two agencies reportedly shared an office, employees, website, and branding. The DIFS said they functioned as a single operation in practice.
In December 2024, First American Title Insurance Co. terminated its appointments with Peak Title Agency following the agency’s failure to cooperate with an audit request. The regulator said the agency’s noncooperation continued into March this year, when it did not respond to a DIFS notification about a routine audit. The agency allegedly failed to comply with an April order to produce financial records.
Also in April, WFG National Title Insurance Co. canceled its appointments with Peak Title of Michigan. WFG informed the regulator that the agency was diverting funds improperly and did not provide requested documents for an audit.
WFG subsequently filed a lawsuit, alleging the company mismanaged approximately $2.6 million in escrow funds and did not assist in tracing the missing money.
A court appointed a receiver to Peak Title of Michigan on May 7 following WFG’s legal action. In June, the receiver submitted a report indicating a $1.3 million negative balance in the agency’s trust accounts and insufficient funds to meet outstanding obligations.
DIFS has issued detailed regulatory guidance regarding the proper handling of escrow accounts by title agencies. The department mandates that these accounts remain separate from operating funds, and that all disbursements be traceable and supported by documentation.
Separately, Michigan lawmakers have introduced a package of bills aimed at enhancing the state’s approach to insurance fraud enforcement. The proposed legislation – House Bills 4715, 4716, 4718, and 4719 – would increase penalties for violators and require insurers to report suspected fraudulent activity to DIFS.
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