HUD Responds to 1999 ALTA® Letter on Reinsurance Arrangements

August 12, 2004

HUD provided scant guideance to the industry in a much-belated response to an ALTA inquiry of five years standing. Question was raised at that time about various captive reinsurance arrangements established by builders and lenders with certain title insurers and the legality of such relationships under RESPA Section 8. HUD merely refers us to a prior opinion on mortgage insurance captive reinsurance arrangements for the appropriate standard.