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Regulators wrangle over messy force placed insurance practices
Regulators and banks struggle six plus years after the housing collapse to curb force placed insurance schemes. Mortgage servicers used dummy agencies and inflated policies to push costly cover onto homeowners, boosting profits while investors bear risk. New rules aim to stop such kickbacks and ensure borrowers keep proper insurance without unlawful enrichment by lenders.
MENTIONED IN THIS ARTICLE
Washington, D.C
Jpmorgan Chase
Wells Fargo
Citigroup
Housing Finance Agency