CFPB Fines Mortgage Lender For Illegal Fee Splitting

Law360, New York (February 26, 2014, 6:30 PM EST) -- Mortgage provider First Alliance Lending LLC will pay a $83,000 penalty to the Consumer Financial Protection Bureau after the company self-reported that it had been illegally splitting real estate settlement fees, the agency said Monday.

Connecticut-based First Alliance Lending informed the CFPB last year that it had been splitting fees connected with mortgage closings with affiliates of an undisclosed hedge fund, even after the affiliates had stopped financing First Alliance's loans, in violation of the Real Estate Settlement Procedures Act.

“These types of illegal payments can harm...
To view the full article, register now.