CFPB Fines Lender over Expense Accounts

By June 5, 2015Latest Insights

Posted To: MND NewsWire

For the second time this week the Consumer Financial Protection Bureau (CFPB) has filed in federal court against a lender for unfair compensation practices . Today’s complaint was levied against RPM Mortgage, Inc. and its CEO, Erwin Robert Hirt, for illegally paying bonuses and higher commissions to loan originators to incentivize them to steer consumers into costlier mortgages. The complaint was accompanied by a proposed order asking the court to require RPM to pay $18 million in redress to consumers and a $1 million civil penalty, and compel an additional $1 million civil penalty payment from Hirt. RPM Mortgage , Inc. is a residential-mortgage lender headquartered in California and operating about sixty branches in six states. CFPB contends that, under a plan originated in April 2011, RPM…(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

aggbug CFPB Fines Lender over Expense Accounts
Source: Mortgage News Daily