The requirements target the relationship between the lenders, the flood insurers, and reinsurance, and include the following:
- Prohibiting the payment of commissions to a mortgage servicer on LPI policies obtained by that servicer
- Prohibiting the payment of contingent commissions based on underwriting profitability or loss ratios to any servicer or entity affiliated with a servicer
- Prohibiting the issuance of LPI policies on mortgaged property serviced by an affiliate
- Prohibiting the issuance of reinsurance on LPI policies with a captive insurer of any mortgage servicer
- Prohibiting the provision of free or below-cost outsourced services to a mortgage servicer
- Prohibiting the payment of any incentive to a mortgage servicer as an inducement to secure LPI business
Read the most recent consent order.