US CFPB Penalizes Republic Mortgage Insurance Over Illegal Kickbacks Practices

November 18, 2013
Insurance Business Review 
consumer financial protection bureau news
Republic Mortgage Insurance Corp. (RMIC) has drawn a $100,000 fine for allegedly feeding illegal kickbacks to home lenders under an arrangement that had gone on for more than 10 years. In addition to the penalty, the mortgage insurer agreed to end the practices in question -- which entailed buying worthless captive reinsurance policies in order to turn a profit for lenders that steered referrals its way. The Consumer Financial Protection Bureau (CFPB), which filed the complaint against RMIC in U.S. District Court in Florida, has taken similar action against four other mortgage insurers this year. "Kickbacks for mortgage insurance referrals are illegal, and can drive up costs for consumers seeking to buy a home," declared CFPB director Richard Cordray.









Abstract News © Copyright 2008-2013 INFORMATION, INC.
Powered by Information, Inc.

Stay Updated

Join the fight against predatory lending. Enter your e-mail to sign up for breaking news, action alerts, and CRL's original research.

   Please leave this field empty
  

Help Us End Predatory Lending

Predatory lending destroys family wealth, and preys on our most vulnerable communities. You can help us end abusive lending practices by donating to CRL, or by sharing our work with others.



`