The legislation would require Fannie Mae, Freddie Mac and the Federal Housing Administration to incorporate energy efficiency into their underwriting policies.
EXL Service carries out a broad range of insurance work for British and American firms, from finding customers to underwriting policies, administering claims, changing policies and providing customer services.
It said the effect of a fall in the real estate market would probably be limited, because banks' underwriting policies were "relatively conservative".
The Kemper Insurance Companies will stop underwriting policies and sell its main businesses, including its workers compensation unit, to Swiss Re's Securitas Capital and other private equity funds.
Like its peers in the industry, Swiss Re counted more on investment income than on profits from underwriting policies to lift revenue during the late 1990's.
"The F.H.A.'s underwriting policies encourage low- and moderate-income families with low credit scores to make a risky financing decision," he said, "one combining a low score with a 30-year loan term and a low down payment.
Mr. Bove, noting that part of the sham included opening "566,000 phantom credit card accounts," asked in a note to clients, "What does this indicate about the bank's underwriting policies?
The goal, executives say, is to create a business with a common set of products, underwriting policies and back-office functions that will allow Citi to reduce costs and better assess risks.
"It defies reason, given the entirety of the allegations," Judge Pfaelzer wrote, "that these committee members could be blind to widespread deviations from the underwriting policies and standards being committed by employees at all levels.
