logo
Share SHARE
FONT-SIZE Plus   Neg

Radian Settles CFPB Probe On Captive Reinsurance Arrangements

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.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Gas explosion in Fresno in California injured 11 people on Friday afternoon. Pacific Gas and Electric Co. (PG&E) said workers who are not affiliated with the company have struck a 12-inch natural gas transmission pipeline and the gas leaked was ignited due to the dig-in. Verizon Communications' FiOS TV service has modified its programming bundles and will now offer new packages so that users can subscribe only for channels they prefer to watch. Instagram, the photo sharing app owned by Facebook, has updated its community guidelines to disallow nudity and harassment in uploaded photos and pictures, as well as cyber bullying.
comments powered by Disqus
RELATED NEWS
Trade RDN now with 
Follow RTT