CFPB’s Very Very Very First Loan Officer Compensation Enforcement Action

CFPB’s Very 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 settlement limitations. In cases like this, the CFPB filed a problem in Utah federal district court against Castle & Cooke Mortgage LLC as well as 2 of their senior officers within their specific capability. This situation had been initially called towards the CFPB because of the Utah home loan banking regulator.

The CFPB alleged that the organization, acting through the 2 officers separately called into the suit, applied an additional benefit system that paid loan officers bonuses that are quarterly varied in line with the interest associated with loans the loan officers wanted to borrowers. The problem also alleged that the organization would not make reference to the bonus system with its written settlement agreements along with its loan officers, would not keep a written policy explaining the techniques used to determine the amount of the quarterly bonuses, and neglected to record exactly just what part of each loan officer’s quarterly bonus had been due to a specific loan.

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 home financing loan through the business in which the loan originator received a quarterly bonus. (daha&helliip;)

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