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ARTICLE · 31 OCTOBER 2013

Mortgage Loan Originator Compensation

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On July 23, 2013, the Consumer Financial Protection Bureau ("CFPB") filed a complaint against Castle & Cooke Mortgage, LLC (the "Company") alleging violations of the mortgage loan originator compensation rules.

United StatesFinance and Banking
Memrie Fortenberry
Memrie Fortenberry
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On July 23, 2013, the Consumer Financial Protection Bureau ("CFPB") filed a complaint against Castle & Cooke Mortgage, LLC (the "Company") alleging violations of the mortgage loan originator compensation rules. More specifically, the CFPB alleged that the Company paid quarterly bonuses to mortgage loan originators based on the interest rates on loans originated by each loan originator. According to the CFPB, the Company's mortgage loan originators had an incentive to increase the interest rate on mortgage loans in order to receive a larger bonus; thus, steering borrowers into loans with higher interest rates. In its complaint, the CFPB alleged that the Company paid more than four million dollars in bonuses between July 8, 2011 and April 27, 2012.

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