{"id":35183,"date":"2023-03-05T01:32:35","date_gmt":"2023-03-05T06:32:35","guid":{"rendered":"https:\/\/d56fg8tfg.fitnews.club\/finance\/cfpb-takes-action-against-guarantee-mortgage-for-loan-originator-compensation-violations\/"},"modified":"2023-03-05T01:32:35","modified_gmt":"2023-03-05T06:32:35","slug":"cfpb-takes-action-against-guarantee-mortgage-for-loan-originator-compensation-violations","status":"publish","type":"post","link":"https:\/\/d56fg8tfg.fitnews.club\/finance\/cfpb-takes-action-against-guarantee-mortgage-for-loan-originator-compensation-violations\/","title":{"rendered":"CFPB Takes Action Against Guarantee Mortgage For Loan Originator Compensation Violations"},"content":{"rendered":"
\n

Lender Ordered to Pay $228,000 Civil Penalty<\/em><\/strong><\/p>\n

WASHINGTON, D.C. \u2014<\/strong> Today, the Consumer Financial Protection Bureau (CFPB) ordered a California mortgage bank, Guarantee Mortgage Corporation, to pay a civil penalty of $228,000 for paying its branch managers based, in part, on the interest rates of the loans they closed. The Loan Originator Compensation Rule, which the Bureau has enforced since July 21, 2011, protects consumers from being steered into costlier loans by prohibiting loan originators from receiving compensation based on the interest rates of the loans they close. <\/p>\n

Guarantee, which is no longer in business, was a mortgage banking firm that operated 10 branches in the San Francisco Bay Area. The CFPB\u2019s investigation found that Guarantee violated the Loan Originator Compensation Rule by paying loan originators in part based on the interest rates charged on loans they had originated. The compensation was funded by payments Guarantee made to marketing services entities owned in part by the company\u2019s branch managers and other Guarantee loan originators; the originator-owners drew a portion of those fees as compensation. As a result, branch managers received compensation based on the interest rates of the loans they originated in violation of the Loan Originator Compensation Rule during that period. <\/p>\n

Today\u2019s consent order requires Guarantee, which is in the process of dissolving, to pay $228,000 to the CFPB\u2019s Civil Penalty Fund.<\/p>\n

A copy of the consent order filed today is available at:<\/strong> https:\/\/files.consumerfinance.gov\/f\/201506_cfpb_consent-order-guarantee-mortgage-corporation.pdf<\/span> <\/svg><\/a><\/p>\n<\/p><\/div>\n

Official news published at https:\/\/www.consumerfinance.gov\/about-us\/newsroom\/cfpb-takes-action-against-guarantee-mortgage-for-loan-originator-compensation-violations\/ <\/a>
\n
Images courtesy of PixaBay<\/a><\/i><\/p>\n","protected":false},"excerpt":{"rendered":"

Lender Ordered to Pay $228,000 Civil Penalty WASHINGTON, D.C. \u2014 Today, the Consumer Financial Protection Bureau (CFPB) ordered a California mortgage bank, Guarantee Mortgage Corporation, to pay a civil penalty of $228,000 for paying its branch managers based, in part, on the interest rates of the loans they closed. The Loan Originator Compensation Rule, which […]<\/p>\n","protected":false},"author":1,"featured_media":35184,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[373],"tags":[],"class_list":{"0":"post-35183","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-finance"},"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t