Quick Facts
FONT-SIZE Plus   Neg
Share SHARE

Radian Settles CFPB Probe On Captive Reinsurance Arrangements

RELATED NEWS
Trade RDN now with 

Radian Group Inc. (RDN: Quote) said Thursday that its mortgage insurance subsidiary, Radian Guaranty Inc., has reached a settlement agreement with the Consumer Financial Protection Bureau, or CFPB, to resolve a previously disclosed federal investigation of the company's participation in captive reinsurance arrangements.

As part of the settlement, which was filed earlier Thursday in the U.S. District Court for the Southern District of Florida, Radian agreed not to enter into new captive reinsurance arrangements for a period of ten years and to pay a civil penalty of $3.75 million.

The settlement agreement, which remains subject to Court approval, will conclude the CFPB's investigation with respect to Radian without the CFPB making any findings of wrongdoing in its investigation or in the settlement.

Radian and other mortgage insurers remain subject to an investigation by the Minnesota Department of Commerce relating to their captive reinsurance arrangements, and they are currently facing private lawsuits alleging, among other things, that their captive reinsurance arrangements constitute unlawful payments to mortgage lenders under the federal Real Estate Settlement Procedures Act.

Radian plans to vigorously defend the company in that investigation and against those claims.

Register
To receive FREE breaking news email alerts for Radian Group Inc and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Swiss drug maker Roche Holding said a late-stage trial of its breast cancer drug Kadcyla did not provide superior results compared with an existing therapy. FCA US, until recently known as Chrysler, said Friday it is recalling 257,000 Dodge Ram pickups. The auto maker says the rear axle pinion nut on certain model year 2005 Dodge Ram 1500 trucks may loosen due to an undersized spline on the pinion gear. If the pinion nut loosens, the rear axle may... This medical device company has a very impressive track record of growing business over the past decade. increasing sales from $490.2 million in 2004 to $1.72 billion this year. The Silicone Hydrogel daily disposable lens portfolio constitutes a major avenue for growth.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.