CFPB fines Missouri lender $81K for illegal kickbacks
The motive: referral fees
The Consumer Financial Protection Bureau (CFPB) took action against Missouri lender Fidelity Mortgage Corp., in addition to its former owner and current president Mark Figert, ordering the company to pay $81,076 for funneling illegal kickbacks to a bank in exchange for real estate referrals.
"Kickbacks harm consumers by hampering fair market competition and by unnecessarily increasing the costs of getting a mortgage," said CFPB Director Richard Cordray.
"The Consumer Financial Protection Bureau will continue to take action against schemes that steer consumers to lenders through unscrupulous and illegal business practices."
The bank referred borrowers to Fidelity in exchange for kickbacks, which were disguised as inflated lease payments for renting office space within the bank.