logo
Share SHARE
FONT-SIZE Plus   Neg

Radian Settles CFPB Probe On Captive Reinsurance Arrangements

Radian Group Inc. (RDN) 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.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Amazon.com Inc. is working on developing a pair of smart glasses that would allow to summon and interact with virtual assistant Alexa while wearing the device, the Financial Times reported, citing people familiar with the plans. The glasses, which would be required to be connected wirelessly to a smartphone to work, is reportedly designed to look like a regular pair of spectacles. Employees at Bombardier Inc.'s aerospace plant in Toronto plan to walk out of the facility on Wednesday morning. The move is an attempt to put pressure on Boeing Co. to drop a trade complaint against the Canadian plane and train maker. The Baltimore Ravens, a professional American football team, postponed its "DNA Day" event just hours before this season's home opener last Sunday. Orig3n Inc., a Boston-based biotech company sponsoring the event, said in a statement that it is "working to address questions from officials from the state of Maryland."
comments powered by Disqus
Follow RTT