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.
CBIZ Brokerage to Be Spun Off, Backed by Private Equity, After $5B Grant Thornton Deal 
Jury Awards 78-Year-Old Victim $56 Million for Crash Caused by Amazon Delivery Driver 
Zurich CEO Says Staff Let Go as Regulator Finma Imposes Partial Sales Ban 
Record-Low Danube Water Levels Leave Boats Beached, Reveal Decades-Old Shipwrecks 
