Mortgage Lender Pushed High-Interest Loans, CFPB Claims

Law360, New York (July 23, 2013, 7:24 PM EDT) -- The Consumer Financial Protection Bureau on Tuesday sued lender Castle & Cooke Mortgage LLC in Utah federal court, alleging it had unlawfully paid bonuses to staff to encourage them to push borrowers toward higher-interest loans.

The CFPB’s complaint states that C&C had paid its loan officers quarterly bonuses pegged to the terms and conditions of the loans they had originated, therefore encouraging them to steer borrowers into loans with the least favorable terms and highest interest rates, in violation of the Federal Reserve’s amended Regulation Z, or...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.