Business

Foreign-timeshare inquiry leads state to order Meridian firm to stop selling insurance

A title company verifies ownership of a property and sells insurance to protect a lender and a property owner against claims resulting from any disputes. Title insurance is required when a home buyer wants a mortgage from a lender.
A title company verifies ownership of a property and sells insurance to protect a lender and a property owner against claims resulting from any disputes. Title insurance is required when a home buyer wants a mortgage from a lender.

The state has ordered a Meridian business to stop selling title insurance, saying it is not licensed for that work.

The Idaho Department of Insurance this week issued a cease-and-desist order to The Closing Source LLC, located at The Village at Meridian. It said neither the company nor owners Diamantina Rumbaugh or Robert Ferdinand is licensed to sell title insurance in Idaho.

A title company verifies ownership of properties and sells insurance policies to protect lenders and property owners against claims resulting from any disputes.

Rumbaugh, the managing member, and Ferdinand could not be reached for comment Thursday. An employee who answered the phone at the Meridian office said she unaware of the order and could not comment on it.

The Department of Insurance received a complaint from a person who was involved in the sale of a timeshare property and called to find out if The Closing Source was properly licensed. The caller said the company was acting as a title and escrow agent for the sale of the timeshare, located outside the United States.

“Immediate and timely action is necessary to prevent harm to the public and to take immediate steps to prevent The Closing Source from doing any further unlicensed activity out of its Idaho-based office,” said the order, signed Tuesday by Dean Cameron, director of the Department of Insurance.

Cameron said his agency has a responsibility to protect Idaho consumers by making sure insurance sellers are properly licensed.

On its website, The Closing Source says “high standards is (sic) always a priority for us.” The company says it receives advice from lawyers, ethicists and security consultants, “to provide the best service for your business.”

John Sowell: 208-377-6423, @JohnWSowell

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