In July of 2013, the CFPB took its very first enforcement action for so-called violations of settlement limitations. The CFPB filed a complaint in Utah federal district court against Castle & Cooke Mortgage LLC and two of its senior officers in their individual capacity in this case. This situation had been initially called into the CFPB because of the Utah home loan banking regulator.
The CFPB alleged that the business, acting through the 2 officers separately known as into the suit, applied a plus system that paid loan officers bonuses that are quarterly varied on the basis of the rate of interest associated with the loans the mortgage officers provided to borrowers. The issue also alleged that the organization didn’t reference the bonus system in its written settlement agreements having its loan officers, failed to keep a written policy describing the techniques utilized to calculate the quantity of the quarterly bonuses, and neglected to record just exactly exactly what part of each loan officer’s quarterly bonus had been due to a specific loan.
The court joined a Stipulated Final Judgment and Order in November of 2013. Your order given to significantly more than $9 million in restitution for customers whom obtained home financing loan through the business where in actuality the loan originator received a bonus that is quarterly. The order also given to $4 million in civil cash charges resistant to the business and two of their officers, jointly and severally, for having to pay bonuses to loan officers.
Money Rebates and Bonuses – CFPB’s Second Compensation Enforcement Action
On 13, 2014, the CFPB announced an action against a California mortgage lender, Franklin Loan Corporation, for steering consumers into loans with higher interest rates november. Continue reading “CFPB’s Very Very First Loan Officer Compensation Enforcement Action”