CFPB’s Very Very First Loan Officer Compensation Enforcement Action

CFPB’s Very Very First Loan Officer Compensation Enforcement Action

In July of 2013, the CFPB took its very first enforcement action for so-called violations of payment 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 instance had been originally called to your CFPB because of the Utah home loan banking regulator.

The CFPB alleged that the organization, acting through the two officers separately called when you look at the suit, applied an additional benefit system that paid loan officers quarterly bonuses that varied in line with the rate of interest for the loans the mortgage officers agreed to borrowers. The grievance also alleged that the organization would not relate to the bonus system in its written settlement agreements featuring 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 exactly exactly what percentage of each loan officer’s quarterly bonus had been owing to a loan that is particular.

The court joined a Stipulated Final Judgment and purchase in of 2013 november. Your order given to significantly more than $9 million in restitution for customers whom obtained a home loan loan through the company where in fact the loan originator received a bonus that is quarterly. Your order additionally given to $4 million in civil cash charges contrary to the business and two of the officers, jointly and severally, for having to pay bonuses to loan officers.

Money Rebates and Bonuses – CFPB’s Second Compensation Enforcement Action

On November 13, 2014, the CFPB announced an action against a Ca mortgage company, Franklin Loan Corporation, for steering customers into loans with greater interest levels. The CFPB alleged that the business paid bonuses that are quarterly loan officers located in component regarding the rates of interest in the loans. (more…)

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