For years, many have been asking when the Consumer Financial Protection Bureau was going to get aggressive when it comes to pursuing lenders it believes skirted the loan officer compensation rules.
It appears that time is now.
Two lenders recently have settled claims they violated the LO compensation laws.
RPM Mortgage has agreed to pay $18 million dollars to redress alleged violations, as well as an additional $1 million fine. Further, the lender’s president also has agreed to pay a $1 million personal fine for his role in implementing a comp plan the CFPB claimed was illegal.
The company said it settled the matter without an admission of wrongdoing “to avoid the cost and distraction of litigation.”
RPM’s alleged violations center on its use of individual expense accounts which were funded by overages charged by the loan officers. The expense accounts could be used by loan officers to […]