Tag: Loan Originator

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Another CFPB Loan Originator Compensation Enforcement Action
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CFPB Brings First Action for Violations of Loan Originator Compensation Rule

Another CFPB Loan Originator Compensation Enforcement Action

By: Kris D. Kully

The Consumer Financial Protection Bureau (CFPB) has once again charged a mortgage lender with paying compensation to loan originators based on loan terms, which is prohibited under the Truth in Lending Act and its Regulation Z. This week, the CFPB asked a federal court to approve an order requiring Franklin Loan Corporation (which lends in California and Illinois) to pay $730,000 for allegedly paying loan originators quarterly bonuses based on loan terms.

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CFPB Brings First Action for Violations of Loan Originator Compensation Rule

By: Jonathan D. Jaffe,  Rebecca Lobenherz

On July 23, the Consumer Financial Protection Bureau (CFPB) sued a national mortgage lender and two of its officers for allegedly violating Regulation Z’s loan originator compensation rule (the LO Comp Rule or the Rule) by paying bonuses to employees for steering borrowers to loans with higher interest rates. (See here.) The case was referred to the CFPB by investigators with the Utah Department of Commerce, Division of Real Estate. This is the first publicly announced judicial action the CFPB has brought enforcing the Rule. Read More

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