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Monday, April 8, 2013

NY DFS Urges Other States to Adopt Lender-Placed Insurance Reforms

The Wall Street Journal reports this morning that New York Department of Financial Services (DFS)Superintendent Benjamin M. Lawsky wrote a letter to the insurance regulators of other states urging them to adopt the same lender placed insurance reforms that New York is considering.

As outlined in a Consent Order from last month, New York DFS has prohibited the practice of paying commissions and entering into re-insurance relationships between lender-placed insurers and mortgage servicers.  Their latest effort is to try to extend the NY regulatory regime to other states, with the cooperation of those other states' regulators.

Read the NY DFS Consent Order.