Thursday, April 04, 2013

fines levied for illegal kickback affiliations

The CFPB cited the following firms: Genworth Mortgage Insurance Corp.United Guaranty Corp., Radian Guaranty Inc. and Mortgage Guaranty Insurance Corp.
The consumer agency claims the four insurers received lucrative business referrals from lenders by purchasing captive reinsuance that the CFPB has deemed "essentially worthless but was designed to make a profit for the lenders."
As part of the deal, the insurers have agreed to end the practice, paying $15 million in penalties and undergoing constant monitoring by the CFPB.

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