On November 13, 2014 the CFPB ordered a California mortgage lender to pay $730,000 for illegal loan originator compensation bonus plan involving steering of consumers into higher interest rate loans. A redacted text of the CFPB news release is set out below with hyperlinks to the CFPB complaint filed with the United States District Court for the Central District of California and the CFPB proposed consent order. “Today, the Consumer Financial Protection Bureau (CFPB) ordered a California mortgage lender, Franklin Loan Corporation, to pay $730,000 for giving its employees illegal bonuses for steering consumers into loans with higher interest rates. The Bureau has asked a federal district court to approve a consent order requiring the company to end its illegal compensation system and refund the consumers it harmed.
