AIG Among Mortgage Insurers Fined by CFPB in Kickback Probe
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Four mortgage insurers will pay more than $15 million in penalties to settle claims they paid illegal kickbacks to lenders in exchange for business, the Consumer Financial Protection Bureau said today.
“Illegal kickbacks distort markets and can inflate the financial burden of homeownership for consumers,” Richard Cordray, the CFPB’s director, said in an e-mailed statement. “We believe these mortgage insurance companies funneled millions of dollars to mortgage lenders for well over a decade.”