PNC, Insurers Accused Of Captive Reinsurance Scheme

Law360, New York (January 3, 2012, 7:54 PM EST) -- A putative class of homeowners sued PNC Financial Services Group Inc. and several insurers Friday in Pennsylvania federal court, alleging a captive reinsurance scheme under which the lender received kickbacks for referring its mortgage customers to the insurers.

In violation of the Real Estate Settlement Procedures Act of 1974, the insurers paid PNC predecessor National City Corp. and its affiliated reinsurer National City Mortgage Insurance Co. Inc. payments in the form of purported reinsurance premiums and gave National City an unlawful split of private mortgage insurance...
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