New Frontier Bank Fined $70,000 by FDIC

June 30, 2014
St. Louis Post-Dispatch 
mortgage lending news
New Frontier Bank has paid a $70,000 penalty after being accused of violating the Real Estate Settlement Procedures Act (RESPA). The law forbids lenders from giving kickbacks to property agents who steer settlement service business on government-insured mortgages to them.

The sanction was handed down in May by the Federal Deposit Insurance Corp. (FDIC), which only recently disclosed the fine. As part of its consent order, New Frontier must submit written progress reports each quarter on its compliance with the order's provisions -- including notifying consumers affected by the RESPA violations. While New Frontier did not admit to wrongdoing, bank representatives said it would be cost-prohibitive to fight the FDIC on the charges.

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.