Mortgage insurers fear New York's painting a new kind of relationship between them and insurers as an invitation to kickbacks will smear the arrangement nationwide.

At issue are so-called captive reinsurance subsidiaries, which insurers have been helping lenders set up. The idea is that the insurers would lay off some mortgage risk on these units and pay them part of the premiums.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.