The CFPB announced the settlement of enforcement actions brought in federal district court in Florida against four national  mortgage insurers involving allegations that the insurers paid kickbacks to mortgage lenders in violation of Section 8 of the Real Estate Settlement Procedures Act.

The alleged kickbacks were paid through captive reinsurance arrangements in which the mortgage insurers, after insuring mortgage loans made by a lender, purchased reinsurance from the lender’s affiliate or subsidiary. … Continue Reading