CFPB charges Stonebridge Title Services for RESPA violation
Ordered to pay $30,000
The Consumer Financial Protection Bureau ordered New Jersey-based Stonebridge Title Services to pay $30,000 for paying illegal kickbacks for referrals.
The CFPB charged that the company paid commissions to more than 20 independent salespeople who referred title insurance business to Stonebridge.
Stonebridge solicited people to provide it with referrals of title insurance business, offering to pay commissions of up to 40% of the title insurance premiums Stonebridge itself received.
In doing so, the company violated Section 8 of the Real Estate Settlement Procedures Act and is required to pay a civil penalty.
“Kickbacks drive up the costs of getting a mortgage and put law-abiding companies at a disadvantage,” said CFPB Director Richard Cordray. “The Consumer Bureau will continue to take action against companies that seek to attract consumers through illegal schemes.”