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U.S. Cracks Down on 'Forced' Insurance
The Wall Street Journal (online registration required): WASHINGTON—A U.S. housing regulator is cracking down on a little-known practice that has hit millions of struggling borrowers with high-price homeowners' insurance policies arranged by banks that benefit from the costly coverage.
The Federal Housing Finance Agency, which regulates mortgage giants Fannie Mae FNMA +4.67% and Freddie Mac, FMCC +3.96% plans to file a notice Tuesday to ban lucrative fees and commissions paid by insurers to banks on so-called force-placed insurance.
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