Consumer Watchdog Investigating Mortgage Insurers
August 6, 2012
Recent regulatory filings by mortgage insurers signal that the Consumer Financial Protection Bureau (CFPB) is investigating industry practices.
While PHH Corp. disclosed in January that it was a target of a probe, recent filings indicate the scrutiny reaches other businesses in the industry. The CFPB is looking into whether firms such as American International Group, MGIC Investment Corp., and Genworth Financial violated real estate laws.
Several mortgage insurance companies face class-action lawsuits challenging the legality of certain business arrangements. The Wall Street Journal reports that state officials allege some in the industry paid banks to have business steered in their direction, a practice that may violate the Real Estate Settlement Procedures Act (RESPA).
Source: "Consumer Bureau Sets Mortgage-Insurer Probe," Wall Street Journal (August 6, 2012)
Updated: November 25, 2020