A Utah mortgage company, along with two of its top officers, will pay $13.2 million in refunds and fines to settle a lawsuit filed in July. 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 in the suit filed by filed by the Consumer Financial Protection Bureau.
Under the settlement, 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 promulgated in April 2011. As usual, even though they settled the case, the company and its officers didn’t acknowledge any wrongdoing in the settlement.
Source: Salt Lake Tribune
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