CFPB’s Very First Loan Officer Compensation Enforcement Action

CFPB’s Very First Loan Officer Compensation Enforcement Action

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 instance ended up being initially introduced towards the CFPB by the Utah home loan banking regulator.

The CFPB alleged that the business, acting through the 2 officers independently called into the suit, implemented an advantage system that paid loan officers bonuses that are quarterly varied on the basis of 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 using its loan officers, failed to keep a written policy describing the techniques utilized to determine the amount of the quarterly bonuses, and neglected to record exactly what part of each loan officer’s quarterly bonus ended up being owing to a specific loan.

The court joined a Stipulated Final Judgment and purchase in of 2013 november. Your order given to a lot more than $9 million in restitution for customers who obtained a home loan loan through the company where in fact the loan originator received a bonus that is quarterly. (más…)