CFPB Accuses Mortgage Insurer Of Giving Lenders Kickbacks

Law360, New York (November 15, 2013, 4:23 PM EST) -- The U.S. Consumer Financial Protection Bureau on Friday sued Republic Mortgage Insurance Co. in Florida federal court, alleging it paid illegal kickbacks to mortgage lenders in exchange for business.

In a complaint and proposed consent judgment filed simultaneously in Florida federal court, the CFPB alleged RMIC has entered into agreements through which it paid illegal kickback payments or unearned fees, disguised as reinsurance premiums, to captive reinsurance affiliates of lenders providing residential mortgage loans in exchange for the referral of private mortgage insurance business from the...
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