ML-Implode News - CFPB Charges Lender $13M for Alleged Kickback Scheme

``Since the CFPB filed its first complaint against the company in July, industry observers have said it sent a strong message to mortgage originators to tread carefully in how loan officers are paid. More enforcement actions are expected as new mortgage rules take effect in January that will restrict loan officer compensation and include multiple parties involved in the pricing of the mortgage.
"In this day and age lenders have to be very, very careful," said Fred Kreger, a branch manager at California-based mortgage bank American Family Funding, in a recent interview with American Banker. "The statute says that compensation cannot be arbitrary and the reason they want written procedures is to have clearly defined rules that loan officers abide by, so they cannot charge borrowers differently."''

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CFPB Charges Lender $13M for Alleged Kickback Scheme