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

Editors Pick
Lender Barclays Plc. Tuesday said full-year profit before tax declined 21 percent from last year, hit by items. The company noted that its Personal and Corporate Banking or PCB and Barclaycard businesses continued to thrive and grow, while Africa Banking did well despite currency headwinds. The company saw encouraging performance in several areas of Investment Bank. Fox News pundit Bill O'Reilly remains under fire amid accusations that he trumped up his role in covering international events. Only weeks after a Mother Jones article raised doubts about his claims that he was in the "warzone" during the Falklands War, the Washington Post noticed that O'Reilly once... PayPal, the online payment unit of Ebay, said it has agreed to buy mobile payment company Paydiant as part of efforts to expand its mobile offerings for merchants. The deal comes at a time when the mobile payment space is suffused with prominent players like Apple and Google, with retailers seeking their own mobile payment applications.
comments powered by Disqus
RELATED NEWS
Trade RDN now with 
Follow RTT