- Special Prosecutor Will Be Appointed in Cabell County Regarding State Police Investigation of Mayor's Sick Leave Payment to Skip Holbrook
- Q and A with Councilman Caserta: Mayor Needs to be Held Accountable, Independent Audit Necessary
- UPDATED...State Auditor Citied Lack of Adequate Policies, Controls for Some Huntington Financial Materials, 2013 and 2014
- Bid Specifics Revealed in Huntington Street Sweeping Program
- Ohio Woman Found Guilty of 2009 Antifreeze Murder, Sentenced to 15 Years to Life
- 2014 Huntington Audit Has Statement Governing Sick Leave Payments
- BOOK REVIEW: 'Suspicion': Delightfully Scary Novel Aimed at Young Women Hits Its Target Like an Arrow from Robin Hood
- Huntington Police Arrest Two on Drug Charges
- BOOK REVIEW: 'Monongah' Examines Culture of West Virginia Coal Mine Operations As Well as 1907 Disaster -- The Worst Industrial Accident in Nation's History
- OP-ED: How About Another Christmas Truce?
Consumer Financial Protection Bureau Orders Missouri Lender to Pay $81,000 for Illegal Kickback Scheme
“Kickbacks harm consumers by hampering fair market competition and by unnecessarily increasing the costs of getting a mortgage,” said CFPB Director Richard Cordray. “The Consumer Financial Protection Bureau will continue to take action against schemes that steer consumers to lenders through unscrupulous and illegal business practices.”
The Bureau charged that Fidelity, a St. Louis-based non-depository mortgage lender, entered into an agreement with a bank in which the bank referred potential borrowers to Fidelity in exchange for kickbacks. The kickbacks were disguised as inflated lease payments for renting office space within the bank. The Real Estate Settlement Procedures Act (RESPA) prohibits giving and receiving kickbacks for referrals of settlement-service business involving federally-related mortgages. When companies pay kickbacks in exchange for referrals, it can hurt competition and inflate real estate settlement costs for consumers, while creating an uneven playing field that puts law-abiding businesses at a disadvantage.
Under the terms of today’s consent order, Fidelity and Figert are required to pay back all of the company’s proceeds from the unlawfully referred business – a total of $27,076 that will be deposited in the United States Treasury. Additionally, the CFPB is ordering Fidelity and Figert to pay a $54,000 civil penalty to the Bureau.
The Bureau will continue to enforce RESPA’s anti-kickback provisions to protect consumers and to deter unlawful activity.
A copy of the Bureau’s consent order is available here: http://files.consumerfinance.gov/f/201401_cfpb_consent-order_fidelity.pdf
* * *
The Consumer Financial Protection Bureau is a 21st century agency that helps consumer finance markets work by making rules more effective, by consistently and fairly enforcing those rules, and by empowering consumers to take more control over their economic lives. For more information, visit consumerfinance.gov.