Today the Consumer Financial Protection Bureau issued a press release detailing the proposed settlement of its lawsuit against Castle & Cook Mortgage, LLC, a Utah based mortgage company, for illegal steering and loan originator compensation violations of the loan originator compensation rule in section 1026.36 of Regulation Z. The text of the press release, redacted for brevity, is reprinted below: The Consumer Financial Protection Bureau (CFPB) today announced a proposed consent order in its enforcement action against Castle & Cooke Mortgage, LLC, for allegedly steering consumers into costlier mortgages. The Bureau has asked a federal district court to approve a consent order that would provide more than $9 million in restitution for consumers and obtain $4 million in civil money penalties against Castle & Cooke and two of its officers for allegedly paying loan officers illegal bonuses. Castle & Cooke is a Utah-based mortgage company that originated about $1.3 billion in loans in 2012. The company maintains 45 branches and does business in 22 states. On July 23, 2013, the CFPB filed a complaint in federal district court against the mortgage company and two of its officers for allegedly paying illegal bonuses to loan officers who steered consumers into mortgages with higher interest rates. Download complete memorandum below
