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CFPB Enters into Consent Order for Mortgage Kickbacks
On Tuesday, January 31, 2017, the CFPB took action against Prospect Mortgage, LLC, for allegedly paying illegal kickbacks for mortgage business referrals. The CFPB also took action against two real estate brokers and a mortgage servicer who allegedly took illegal kickbacks from Prospect. Under the terms of the consent order, Prospect will pay a $3.5 million civil penalty for its illegal conduct, and the real estate brokers and servicer will pay a combined $495,000 in consumer relief, repayment of gains, and penalties.
The Bureau claimed Prospect paid for referrals through agreements and paid brokers to require consumers – even those who had already prequalified with another lender – to prequalify with their Prospect. The agency also claims the company split fees with a mortgage servicer to obtain consumer referrals.