HomeLatest ThreadsGreatest ThreadsForums & GroupsMy SubscriptionsMy Posts
DU Home » Latest Threads » Forums & Groups » Main » General Discussion (Forum) » The Consumer Financial Pr...

Tue Jul 30, 2013, 12:40 PM

The Consumer Financial Protection Bureau gets busy

The Consumer Financial Protection Bureau gets busy

by Jen Hayden

The Consumer Protection Financial Bureau, which was created with the help of Senator Elizabeth Warren, is getting down to business and suing a Utah-based mortgage company:

The Consumer Financial Protection Bureau on Tuesday sued Castle & Cooke Mortgage, accusing it of paying illegal bonuses to employees who steered home buyers toward higher-interest loans.

The suit marks the first time a company has been targeted under new federal loan-origination compensation rules adopted after a mountain of bad home loans set off a global financial crisis.

The bureau sued in federal court in Utah, where Castle & Cooke is based, accusing two of its top executives of running a quarterly bonus program that paid $6,100 to $8,700 to loan officers who persuaded consumers to take out pricier mortgages.

Those mortgages brought the company higher profits. Loan officers who did not push customers into higher-interest loans did not receive bonuses, the bureau said.

From recently approved CFPB Director Richard Cordray:

“Today we are taking action against the type of practices that precipitated the financial crisis,” said CFPB Director Richard Cordray. “Consumers should be able to get a mortgage without worrying about how the financial incentives of their loan officers may cause them to pay higher rates than they actually qualify for.”

From the CFPB's press release:

The CFPB’s complaint seeks to:

- End unlawful compensation practices: The complaint seeks to prohibit Castle & Cooke from continuing its practice of incentivizing loan officers to upcharge consumers by distributing quarterly bonuses based on the interest rates of loans sold.

- Ensure that Castle & Cooke retain records of compensation: The complaint seeks to ensure that Castle & Cooke complies with federal law that requires creditors to retain evidence of compliance.

- Secure restitution for consumers: The CFPB is looking to secure restitution for consumers of Castle & Cooke who may have been upsold.

- Obtain civil money penalties: The CFPB is looking to obtain civil money penalties for each bonus paid out. The Dodd-Frank Wall Street Reform and Consumer Protection Act allows civil penalty amounts to be determined under a three-tiered framework: up to $5,000 for any violation; up to $25,000 for reckless violations; and up to $1,000,000 for knowing violations.

Let's hope the Consumer Financial Protection Bureau is just getting started and this is the first of many cases they bring against those who make a living ripping off the American consumer.

http://www.dailykos.com/story/2013/07/30/1227503/-Utah-based-mortgage-company-is-target-of-Consumer-Financial-Protection-Bureau-lawsuit

Progress.

Elizabeth Warren: Cordray Vote ‘A Historic Day For Working Families’

Sen. Elizabeth Warren (D-MA) took to Twitter on Tuesday in praise of the Senate's vote to advance Richard Cordray's nomination to the Consumer Financial Protection Bureau, calling it a "historic day for working families."

Elizabeth Warren ✔ @elizabethforma

I couldn't be more pleased that Rich Cordray will finally get the vote that he deserves. This is a historic day for working families!
1:11 PM - 16 Jul 2013

47 Retweets 26 favorites

http://livewire.talkingpointsmemo.com/entry/elizabeth-warren-cordray-vote-historic-day-for-working

Remarks by Senator Elizabeth Warren on the Re-Nomination of Rich Cordray to be Director of the Consumer Financial Protection Bureau
http://www.warren.senate.gov/?p=press_release&id=180


13 replies, 1071 views

Reply to this thread

Back to top Alert abuse

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
Arrow 13 replies Author Time Post
Reply The Consumer Financial Protection Bureau gets busy (Original post)
ProSense Jul 2013 OP
JaneyVee Jul 2013 #1
ProSense Jul 2013 #2
SunSeeker Jul 2013 #3
FSogol Jul 2013 #4
MineralMan Jul 2013 #5
sheshe2 Jul 2013 #6
ProSense Jul 2013 #7
Scuba Jul 2013 #8
ProSense Jul 2013 #11
Scuba Jul 2013 #12
ProSense Aug 2013 #13
AtomicKitten Jul 2013 #9
ProSense Jul 2013 #10

Response to ProSense (Original post)

Tue Jul 30, 2013, 12:53 PM

1. Come one, come all! And celebrate a positive accomplishment from the Obama administration!

Oh wait, I almost forgot where I was for a moment.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to JaneyVee (Reply #1)

Tue Jul 30, 2013, 01:08 PM

2. :-) n/t

Reply to this post

Back to top Alert abuse Link here Permalink


Response to ProSense (Original post)

Tue Jul 30, 2013, 01:34 PM

3. K & R

Reply to this post

Back to top Alert abuse Link here Permalink


Response to ProSense (Original post)

Tue Jul 30, 2013, 01:34 PM

4. K & R. n/t

Reply to this post

Back to top Alert abuse Link here Permalink


Response to ProSense (Original post)

Tue Jul 30, 2013, 01:36 PM

5. Stuff Takes Time.

It always takes time.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to ProSense (Original post)

Tue Jul 30, 2013, 01:39 PM

6. CFPB!

Fired up and Already going!

Reply to this post

Back to top Alert abuse Link here Permalink


Response to sheshe2 (Reply #6)

Tue Jul 30, 2013, 02:01 PM

7. Republicans hate the CFPB for a reason. n/t

Reply to this post

Back to top Alert abuse Link here Permalink


Response to ProSense (Original post)

Tue Jul 30, 2013, 02:10 PM

8. It's a start.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Scuba (Reply #8)

Tue Jul 30, 2013, 07:11 PM

11. It's a great start. n/t

Reply to this post

Back to top Alert abuse Link here Permalink


Response to ProSense (Reply #11)

Tue Jul 30, 2013, 07:19 PM

12. Actually, it's an anemic start. Castle & Cooke Mortgage is not exactly Goldman Sachs.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Scuba (Reply #12)

Tue Aug 6, 2013, 08:57 AM

13. Disagree. n/t

Reply to this post

Back to top Alert abuse Link here Permalink


Response to ProSense (Original post)

Tue Jul 30, 2013, 02:14 PM

9. I utilized their services and they were top notch!

I opened a second account at my credit union and they put all the new account restrictions on it. I objected, they told me to piss off. So I sent an email to the CFPB and heard back from them the next day. They did an inquiry and sent my complaint to the board that oversees credit unions. I received a letter from them in 1 week saying they looked over my complaint and found .... I was right! They gave my second account the same preferred status as the first.

All's well that ends well. Thanks CFBP!

Reply to this post

Back to top Alert abuse Link here Permalink


Response to AtomicKitten (Reply #9)

Tue Jul 30, 2013, 02:28 PM

10. Cool. n/t

Reply to this post

Back to top Alert abuse Link here Permalink

Reply to this thread