Newsroom
February 24, 2014
CFPB fines mortgage lender $83,000
Feb. 25, 2014 – CFPB on Monday ordered 1st Alliance Lending LLC, a mortgage lender in Connecticut, to pay an $83,000 civil money penalty for violating a prohibition against the payment of unearned fees.
The firm itself reported the potential violation in 2013. It said it believed it had violated the Real Estate Settlement Procedures Act by splitting origination and loss-mitigation fees with a hedge fund and affiliates after its working arrangement with these firms ended.
CFPB said First Alliance cooperated with the bureau's investigation, and the bureau concluded there had been a RESPA violation. "First Alliance's self-reporting and cooperation, consistent with the Bureau's Responsible Business Conduct bulletin published on June 25, 2013, were taken into account in resolving this matter," the bureau said.
The bulletin noted above is for entities under direct CFPB supervision. CFPB has direct enforcement and examination authority over institutions with more than $10 billion in assets, which includes the four largest credit unions.
The firm itself reported the potential violation in 2013. It said it believed it had violated the Real Estate Settlement Procedures Act by splitting origination and loss-mitigation fees with a hedge fund and affiliates after its working arrangement with these firms ended.
CFPB said First Alliance cooperated with the bureau's investigation, and the bureau concluded there had been a RESPA violation. "First Alliance's self-reporting and cooperation, consistent with the Bureau's Responsible Business Conduct bulletin published on June 25, 2013, were taken into account in resolving this matter," the bureau said.
The bulletin noted above is for entities under direct CFPB supervision. CFPB has direct enforcement and examination authority over institutions with more than $10 billion in assets, which includes the four largest credit unions.
Share This
Related Resources
CFPB Orders Bank of America to Pay $12 million
Examination & Enforcement Home-Secured Lending
Blog Post
Adverse Action: Withdrawal, Counteroffer, Notice of Incompleteness
Home-Secured Lending
Blog Post
HELOC Application and Account Opening Disclosures
Home-Secured Lending
Blog Post
Flipped Houses and Second Appraisals
Home-Secured Lending
Blog Post
Get daily updates.
Subscribe to NAFCU today.