Tsk, tsk. Just when I thought mortgage companies were cleaning up their acts, news comes of a complaint filed against a Utah-based mortgage company. The complaint filed by the CFPB in federal district court alleges that Castle & Cooke Mortgage, LLC “illegally paid bonuses to loan officers who steered consumers into mortgages with higher interest rates.”
Specifics of the complaint allege that tens of thousands of customers may have been “up sold” since April 2011. This practice violates the Loan Originator Compensation Rule (“LOC Rule”) which bans compensation based on loan terms.
Castle & Cooke Mortgage, LLC does business in 22 states, with 45 branches across the country. In 2012, they originated $1.3 billion in loans.