Industry News

State probes real estate loan insurer for possible kickbacks

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Mortgage loan insurer Genworth Financial has received requests for information from the New York Insurance Department regarding any payments the insurer made to mortgage lenders, according to a regulatory filing made on Friday. In its quarterly report with the Securities and Exchange Commission filed July 29, Genworth Financial said it received the information requests in May 2005. The requests were directed to each of the company's U.S. mortgage subsidiaries, according to the SEC filing. The New York Insurance Department was asking about captive reinsurance transactions "with lender-affiliated reinsurers and other types of arrangements in which lending institutions receive from our subsidiary any form of payment, compensation or other consideration in connection with issuance of a policy covering a mortgagor of the lending institution," the filing said. "We are also cooperating with respect to these industrywide regulatory inquiries," Genworth said in the SEC filing. The New Yo...