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.
This wire news service story is no longer available.
To see more of the The Mortgage Professor or to subscribe to the newspaper, go to www.mtgprofessor.com
Copyright (c) 2013, The Mortgage Professor
Distributed by McClatchy-Tribune Information Services.
For reprints, e-mail firstname.lastname@example.org, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
This story was distributed by TNS - Tribune News Service