Utah Mortgage Co. To Pay $13M Over Loan-Steering Scheme

Law360, New York (November 7, 2013, 7:51 PM EST) -- A Utah mortgage company has agreed to a $13.2 million settlement with the Consumer Financial Protection Bureau, over allegations it unlawfully paid its staff bonuses for pushing borrowers toward costlier loans, the agency said Thursday.

Castle & Cooke Mortgage LLC will pay more than $9.2 million in restitution combined with $4 million in civil penalties levied against the company and two executives to end the CFPB’s suit accusing the mortgage provider of paying its loan officers quarterly bonuses pegged to loan terms they had originated, thereby...
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