Two title insurance companies have agreed to pay $4 million in penalties and drop rates 15 percent to end a New York probe of their alleged illicit business practices, officials said last week.

Attorney General Eliot Spitzer and Insurance Superintendent Howard Mills said the agreement involved Fidelity National Title Group Inc. and First American Title Insurance Company, and the companies will seek rate reductions of 15 percent for all properties up to $1 million in New York. In exchange, New York will end its investigation of kickbacks and bid-rigging by the companies.

“This settlement should greatly benefit New York home buyers who for too long have paid too much for their title insurance,” said Mr. Spitzer in a statement.

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