CFPB Proposes $100,000 Fine Against Mortgage Insurer

Published November 15, 2013, 5:01 p.m. EST

1 Min Read

Republic Mortgage Insurance Corp. has agreed to pay a $100,000 penalty and stop providing allegedly illegal kickbacks to mortgage lenders as part of a proposed settlement with the Consumer Financial Protection Bureau.

Processing Content

The CFPB alleges that Republic Mortgage purchased unnecessary reinsurance to earn a profit for mortgage lenders in exchange for referrals, according to a complaint filed Friday with the United States District Court for the Southern District of Florida. The proposed consent order, filed with the same court, would prevent Republic Mortgage from entering into such arrangements for the next 10 years and require the company to make regular reports to the CFPB to ensure compliance.

"Kickbacks for mortgage insurance referrals are illegal, and can drive up costs for consumers seeking to buy a home," CFPB director Richard Cordray said in a Friday press release. "The order announced today will put an end to this practice and require RMIC to pay a $100,000 penalty for violating the law."

A Republic Mortgage representative did not immediately respond to a call seeking comment.

The CFPB took similar actions against four mortgage insurers earlier this year, levying fines worth a total of $15.4 million.

For reprint and licensing requests for this article, click here.

Law and regulation

MORE FROM NATIONAL MORTGAGE NEWS

Secondary markets

Ginnie Mae pauses delinquency rules amid FHA waterfall shift

The government guarantor aims to distinguish delinquencies reported as a result of a Federal Housing Administration rule change from broader market trends.

By Bonnie Sinnock
Capital Markets Editor

April 24
Earnings

Flagstar pares back earnings outlook amid elevated CRE payoffs

The Long Island-based regional bank, which has been in turnaround mode for two years, reduced its earnings per share guidance for 2026 and 2027. It cited an expected decrease in net interest income due to higher levels of payoffs and paydowns in commercial real estate.

By Allissa Kline
Reporter

April 24
Housing markets

Prepayments hit 4-year high after mortgage rates eased

Delinquencies also showed signs of overall improvement in March, despite an increase in foreclosure numbers, ICE Mortgage Technology said.

By Spencer Lee
Technology Reporter

April 24
Earnings

Hilltop's PrimeLending cuts pretax losses by over 70% in 1Q

But in its earnings release, parent company Hilltop Holdings warned its full year 2026 results are going to be impacted by things outside of its control.

By Brad Finkelstein
Originations Editor

April 24
Trump administration

Justice Department to drop Powell investigation

U.S. Attorney for the District of Columbia Jeanine Pirro said in a social media post Friday morning that the Justice Department is closing its investigation into Federal Reserve Chair Jerome Powell, clearing a path for Kevin Warsh to be confirmed as Powell's replacement.

By Claire Williams
Reporter

April 24
Originations

Study finds racial gaps in Wells Fargo mortgage denials

The bank denied Black, Latino and Asian mortgage applicants roughly twice as frequently as white applicants in North Carolina, according to a study from the Americans for Financial Reform Education Fund.

By Colin McNamara
Reporter

April 24

Load More