WATCH: Former Wells Fargo CEO calls BofA fine “extortion”

WATCH: Former Wells Fargo CEO calls BofA fine “extortion”

Kovacevich says fine is political and has “nothing to do with justice”

BofA reaches $16.65B settlement over "toxic waste" mortgages

Loans date back to Countrywide and Merrill Lynch

KBRA: More smoke than fire in Ocwen’s restated earnings

Cautions that MSR transactions could see more regulatory scrutiny
W S
Lending / The Ticker

CFPB fines Missouri lender $81K for illegal kickbacks

The motive: referral fees

legal pillars

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. 

Recent Articles by Brena Swanson

Comments powered by Disqus