Implode-o-Meter News - Regulators probing alleged mortgage insurance kickback scheme

The Consumer Financial Protection Bureau, in disclosing its first action Thursday, said the investigation revolves around a scheme in which banks and other lenders required private mortgage insurers to seek backup insurance from lender-owned reinsurance companies.
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Genworth U.S. Mortgage Insurance and United Guaranty Corp. each agreed to pay $4.5 million in penalties. Radian Guaranty Inc. agreed to pay $3.75 million and MGIC agreed to pay $2.65 million.

The companies, which did not admit any guilt, said they believed that the reinsurance arrangements were proper and did not hike costs for home buyers. But all the firms said they settled to put the matter behind them.

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Regulators probing alleged mortgage insurance kickback scheme