The Consumer Financial Protection Bureau has recently served subpoenas to MGIC Investment, Genworth Financial, Radian Group and American International Group - four of the top mortgage insurance companies servicing American home buyers.
The investigation deals with the alleged transfer of billions of premiums from the insurance companies to the banks which made the loan. These premiums were charged to mortgage borrowers and then given to the banks in exchange for more insurance business. These kickbacks are illegal and an unethical practice.
Unfortunately, these type of referral situations can be easy for banks as borrowers typically head the advice of their lenders regarding which mortgage insurance company to use. This is where it becomes increasingly important for borrowers to take a well rounded look at their options and decide which insurance company is right for their situation. If you have any further questions, please feel free to contact our mortgage experts at www.aapexfinancial.net
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