Mortgage

CFPB eyeing PMIs for mortgage insurance compliance

The Consumer Financial Protection Bureau is eyeing two mortgage insurers – United Guaranty and Genworth (GNW) – to evaluate whether the firms are in compliance with federal real estate laws, Insurance Networking News reported.

Apparently, the CFPB sent a civil investigation demand letter to United Guaranty, requesting the insurer answer several key questions, Insurance Networking News said. 

AIG, the parent of United Guaranty, said in securities filings that the CFPB sent a letter to the insurer saying it would agree to toll deadlines associated with the civil investigative demand to resolve the probe.

Insurance Networking News claims United Guaranty also received a proposed consent order from prudential regulator Minnesota Commissioner of Commerce, alleging the insurer violated the Real Estate Settlement Procedures Act and other federal guidelines through some of its practices with captive reinsurance companies.

Genworth also is subject to a probe over questions about reinsurance arrangements.

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