Lenders are reaping the benefits of a new form of mortgage insurance and failing to pass along the savings to consumers, a California state assemblyman has charged.

At issue is GSE pool insurance, one of a series of products introduced recently by mortgage insurers to share profits with lenders, whose margins are shrinking.

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.