Four mortgage insurers have been ordered by the Consumer Financial Protection Bureau to pay $15 million in penalties and halt alleged kickbacks to mortgage lenders in exchange for business.
The companies involved were four of the biggest mortgage insurers in the country, including Genworth Mortgage Insurance Corp., United Guaranty Corp., Radian Guaranty Inc., and Mortgage Guaranty Insurance Corp.
"Illegal kickbacks distort markets and can inflate the financial burden of homeownership for consumers," said CFPB Director Richard Cordray in a press release. "We believe these mortgage insurance companies funneled millions of dollars to mortgage lenders for well over a decade. The orders announced today put an end to these types of arrangements and require these insurers to pay more than $15 million in penalties for violating the law."
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