Fannie, Freddie Ordered To Limit Force-Placed Insurance

Law360, New York (November 5, 2013, 4:03 PM EST) -- The federal regulator overseeing Fannie Mae and Freddie Mac on Tuesday directed the mortgage giants to stop reimbursing mortgage servicers for costs they incur through captive reinsurance agreements that consumer advocates say raise costs for borrowers.

The action from the Federal Housing Finance Agency caps a process that began in March when the agency opened up a review of reimbursements for so-called force-placed insurance schemes, which essentially sees banks recover any costs generated by insuring mortgages when borrowers do not purchase their own policies.

Critics of...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.