This story appeared in Bank Digest.
The Consumer Financial Protection Bureau has taken action against Prospect Mortgage, LLC, a major mortgage lender headquartered in Sherman Oaks, Calif., for allegedly paying illegal kickbacks for mortgage business referrals. The bureau also took action against two real estate brokers and a mortgage servicer that allegedly took illegal kickbacks from Prospect. The CFPB's release said that under the terms of the consent orders, Prospect will pay a $3.5 million civil penalty for its illegal conduct, and the mortgage brokers and servicer will pay a combined $495,000 in consumer relief, repayment of ill-gotten gains, and penalties.
The two real estate brokers are RGC Services, Inc. (doing business as ReMax Gold Coast), based in Ventura, Calif., and Willamette Legacy, LLC (doing business as Keller Williams Mid-Willamette), based in Corvallis, Ore., and the mortgage servicer is Planet Home Lending, LLC, headquartered in Meriden, Conn.
The settlements did not include an admission of wrongdoing by any of the companies.