Tuesday, August 13, 2013

Mortgage lender accused of paying illegal bonuses for costlier loans

 

 
WASHINGTON -- The Consumer Financial Protection Bureau on Tuesday sued Castle & Cooke Mortgage, accusing it of paying illegal bonuses to employees who steered home buyers toward higher-interest loans.
The suit marks the first time a company has been targeted under new federal loan-origination compensation rules adopted after a mountain of bad home loans set off a global financial crisis.