What CFPB Crackdown on Utah Lender Means for Loan Officer Compensation

July 30, 2013
American Banker  
consumer financial protection bureau news

The Consumer Financial Protection Bureau (CFPB) has filed a federal complaint against Salt Lake City-based mortgage bank Castle & Cooke Mortgage for allegedly paying quarterly bonuses to loan originators who directed borrowers into higher-cost loans but lacked a written policy describing the bonuses, as required by new loan compensation rules. The CFPB enforces Regulation Z, which dictates that loan officers cannot receive more compensation if a consumer takes out a loan with a higher interest rate, a prepayment penalty, or higher fees. "The CFPB is clearly sending a message that they are going to actively investigate loan officer compensation plans," says Weiner Brodsky Kider Chairman Mitch Kider.
Web Link -
May Require Paid Subscription 







Abstract News © Copyright 2008-2013 INFORMATION, INC.
Powered by Information, Inc.

Stay Updated

Join the fight against predatory lending. Enter your e-mail to sign up for breaking news, action alerts, and CRL's original research.

   Please leave this field empty
  

Help Us End Predatory Lending

Predatory lending destroys family wealth, and preys on our most vulnerable communities. You can help us end abusive lending practices by donating to CRL, or by sharing our work with others.



`