The Mortgage Professor: Ending insurance kickbacks could raise costs, not lower them
May 3, 2013
By JACK GUTTENTAGThe Mortgage Professor - McClatchy-Tribune Information Services
In April, the Consumer Financial Protection Bureau announced that it had moved to end "improper kickbacks paid by mortgage insurers to mortgage lenders in exchange for business." The kickbacks take the form of dividends paid by captive reinsurers that purport to be a risk-sharing device but are in fact a method of paying lenders for the referral of business.
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