Bans On Force-Placed Perks May Be Wake-Up Call For States

Law360, New York (March 26, 2013, 6:52 PM EDT) -- Following New York's lead, the federal agency in charge of Fannie Mae and Freddie Mac moved Tuesday to forbid insurers from handing fat commissions to banks for their force-placed business, potentially galvanizing insurance regulators across the country to clamp down on controversial practices they've been mulling for months.

The Federal Housing Finance Agency is calling for an end to direct and indirect commissions flowing from insurers to banks that provide force-placed business, as well as questionable reinsurance arrangements that have created further profits for banks....
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