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, director, said. The four companies involved are Genworth Mortgage Insurance Corp, part of Genworth Financial Inc; United Guaranty Corp, which belongs to American International Group Inc; Radian Guaranty Inc, a subsidiary of Radian Group Inc; Mortgage Guaranty Insurance Corp, a MGIC Investment Corp subsidiary.
