The Daily Gazette
The Locally Owned Voice Of The Capital Region

Op-ed column

Ending so-called ‘mortgage kickbacks’ won’t help borrowers

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On April 4, the Consumer Financial Protection Bureau announced that it had taken “enforcement actions to end what the bureau believes to be improper kickbacks paid by mortgage insurers to mortgage lenders in exchange for business.” The kickbacks take the form of dividends paid by captive reinsurers that purport to be a risk-sharing device but are in fact a method of paying lenders for the referral of business. “Illegal kickbacks distort markets and can inflate ...

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