The Consumer Financial Protection Bureau gets busy

[ProSense]

The Consumer Financial Protection Bureau gets busy

by Jen Hayden

The Consumer Protection Financial Bureau, which was created with the help of Senator Elizabeth Warren, is getting down to business and suing a Utah-based mortgage company:

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.

The bureau sued in federal court in Utah, where Castle & Cooke is based, accusing two of its top executives of running a quarterly bonus program that paid $6,100 to $8,700 to loan officers who persuaded consumers to take out pricier mortgages.

Those mortgages brought the company higher profits. Loan officers who did not push customers into higher-interest loans did not receive bonuses, the bureau said.

From recently approved CFPB Director Richard Cordray:

“Today we are taking action against the type of practices that precipitated the financial crisis,” said CFPB Director Richard Cordray. “Consumers should be able to get a mortgage without worrying about how the financial incentives of their loan officers may cause them to pay higher rates than they actually qualify for.”

From the CFPB's press release:

The CFPB’s complaint seeks to:

- End unlawful compensation practices: The complaint seeks to prohibit Castle & Cooke from continuing its practice of incentivizing loan officers to upcharge consumers by distributing quarterly bonuses based on the interest rates of loans sold.

- Ensure that Castle & Cooke retain records of compensation: The complaint seeks to ensure that Castle & Cooke complies with federal law that requires creditors to retain evidence of compliance.

- Secure restitution for consumers: The CFPB is looking to secure restitution for consumers of Castle & Cooke who may have been upsold.

- Obtain civil money penalties: The CFPB is looking to obtain civil money penalties for each bonus paid out. The Dodd-Frank Wall Street Reform and Consumer Protection Act allows civil penalty amounts to be determined under a three-tiered framework: up to $5,000 for any violation; up to $25,000 for reckless violations; and up to $1,000,000 for knowing violations.

Let's hope the Consumer Financial Protection Bureau is just getting started and this is the first of many cases they bring against those who make a living ripping off the American consumer.

http://www.dailykos.com/story/2013/07/30/1227503/-Utah-based-mortgage-company-is-target-of-Consumer-Financial-Protection-Bureau-lawsuit

Progress.

Elizabeth Warren: Cordray Vote ‘A Historic Day For Working Families’

Sen. Elizabeth Warren (D-MA) took to Twitter on Tuesday in praise of the Senate's vote to advance Richard Cordray's nomination to the Consumer Financial Protection Bureau, calling it a "historic day for working families."

Elizabeth Warren ✔ @elizabethforma

I couldn't be more pleased that Rich Cordray will finally get the vote that he deserves. This is a historic day for working families!
1:11 PM - 16 Jul 2013

47 Retweets 26 favorites

http://livewire.talkingpointsmemo.com/entry/elizabeth-warren-cordray-vote-historic-day-for-working

Remarks by Senator Elizabeth Warren on the Re-Nomination of Rich Cordray to be Director of the Consumer Financial Protection Bureau
http://www.warren.senate.gov/?p=press_release&id=180

[JaneyVee]

1. Come one, come all! And celebrate a positive accomplishment from the Obama administration!

Oh wait, I almost forgot where I was for a moment.

[ProSense]

2. :-) n/t

[SunSeeker]

3. K & R

[FSogol]

4. K & R. n/t

[MineralMan]

5. Stuff Takes Time.

It always takes time.

[sheshe2]

6. CFPB!

Fired up and Already going!

[ProSense]

7. Republicans hate the CFPB for a reason. n/t

[Scuba]

8. It's a start.

[ProSense]

11. It's a great start. n/t

[Scuba]

12. Actually, it's an anemic start. Castle & Cooke Mortgage is not exactly Goldman Sachs.

[ProSense]

13. Disagree. n/t

[AtomicKitten]

9. I utilized their services and they were top notch!

I opened a second account at my credit union and they put all the new account restrictions on it. I objected, they told me to piss off. So I sent an email to the CFPB and heard back from them the next day. They did an inquiry and sent my complaint to the board that oversees credit unions. I received a letter from them in 1 week saying they looked over my complaint and found .... I was right! They gave my second account the same preferred status as the first.

All's well that ends well. Thanks CFBP!

[ProSense]

10. Cool. n/t