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.
Was this article valuable?
Here are more articles you may enjoy.
Insurtech Lemonade Posts $43.7M Loss for Q3 
Home-Renovation Expense Keeps Rising as Companies Pass on Costs 
Manufacturers Hammer IBHS Over 15-Year Roof Age Limit for Fortified Designation 
Five Weeks After Isaias, 68,000 Claims and $736M in Losses, Florida Carrier Data Show 
