Lender compensation of loan originators has become a whole new world now that the Consumer Financial Protection Bureau has taken over enforcement for many lenders. During an Inside Mortgage Finance webinar this week, three top legal experts spelled out multiple lessons lenders should learn if they wish to avoid the fate that has befallen some of their peers at the hands of the CFPB. Kristie Kully, a partner with the K&L Gates law firm, drew a number of key take-aways from the first such enforcement action brought by the bureau, which occurred in November 2013, when the CFPB accused Castle & Cook and two of its executives of paying illegal bonuses for steering consumers into costlier mortgages. More specifically, the bureau alleged...
Paul Hindman of Grid Origination Services noted that any public company CEO who does not deliver on performance mandates “is at risk, more so than ever in today’s market.”
"For the CFPB to act on its own in such a bullish manner without concern for the confusion this will cause, along with additional costs for consumers, is unconscionable,” said NAIHP chief Marc Savitt.