This week, the Consumer Financial Protection Bureau (CFPB) and the Maryland Attorney General took action against Wells Fargo and JPMorgan Chase for an illegal marketing services kickback scheme they participated in with Genuine Title, a now defunct title company.
The Bureau and Maryland also took action against a former Wells Fargo employee and his wife for their involvement. Genuine Title gave the banks’ loan officers cash, marketing materials, and consumer information in exchange for business referrals. The proposed consent orders, filed in federal court, would require $24 million in civil penalties from Wells Fargo, $600,000 in civil penalties from JPMorgan Chase, and $11.1 million in redress to consumers whose loans were involved in this scheme. The two individuals will also pay a $30,000 penalty.
Have our former Federal regulators review your mortgage practices to ensure that they are compliance with all aspects of the Real Estate Settlement Procedures Act (RESPA).
