JPMorgan Hit With Reinsurance Kickback Suit

Law360, Los Angeles (November 5, 2013, 6:26 PM EST) -- JPMorgan Chase Bank NA funneled insurance referrals to a group of mortgage insurance businesses in exchange for kickbacks, in violation of the Real Estate Settlement Procedures Act, according to a putative class action filed Monday in Pennsylvania federal court. 

The complaint, which was filed against the bank and its affiliated reinsurer Cross Country Inc., claims that JPMorgan used a network of mortgage insurers who gave a portion of premiums from JPMorgan borrowers to Cross Country to reinsure mortgages with small down payments.

But Cross Country, which...
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