A Utah mortgage company and two of its top officers will pay $13.2 million in refunds and fines in a settlement that puts an end to a lawsuit filed in July.
The Salt Lake Tribune reported that Salt Lake City-based Castle & Cooke Mortgage LLC was sued for paying bonuses to its staff for directing clients to mortgages with higher interest rates.
The company agreed to pay $9.2 million to refund customers.
Company president Matthew Pineda and senior vice president Buck Hawkins will pay $4 million in fines.
The federal rule barring bonuses for loan officers based on terms of the mortgage was created in April 2011.
The company and the officers didn’t acknowledge any wrongdoing in the settlement. The lawsuit was filed by the Consumer Financial Protection Bureau.
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