In his letter, Rep. Oxley said the referral fees violate the Real Estate Settlement Procedures Act (RESPA). In the past the American Land Title Association has said that it had asked the U.S. Department of Housing and Urban Renewal, which administers RESPA, to provide it with guidance concerning acceptable practices and had been “left in the dark.”

“Other investigations have revealed abuses of reinsurance agreements that have forced title companies to pay millions of dollars in settlements and have uncovered anticompetitive practices within the title industry,” Rep. Oxley said in his letter.

The issue is of particular concern, Rep. Oxley noted, because “as housing prices have soared in various parts of the country, the cost of title insurance has become an increasing burden on many consumers.”

He added, “Questions about the need and price of title insurance are of particular concern to those consumers who are required to buy a new policy every time they refinance their mortgage loans, a common practice in this time of historically low interest rates.”

The letter asks the GAO to investigate the title insurance market to determine what factors impact the price of product, including the associated claims, title search, overhead and marketing costs.

It also asks for an examination of the relationship between title insurers, realtors, lenders and home builders for anticompetitive practices and an investigation of potential barriers to entry into the market.