Skip to main content

CFPB Slaps $85K Fine on Ex-Loan Officer

Phil Hall
May 27, 2016
The Consumer Financial Protection Bureau (CFPB) has finalized new measures to ensure that homeowners and struggling borrowers are treated fairly by mortgage servicers

In a very rare enforcement action against a single lower-employee instead of a corporate entity, the Consumer Financial Protection Bureau (CFPB) has levied an $85,000 penalty against David Eghbali, a former loan officer for the Wilshire Crescent Wells Fargo branch in Beverly Hills, Calif., for his alleged role in a mortgage-fee shifting scheme. The CFPB also banned Eghbali from working in the mortgage profession for one year.

The CFPB stated between November 2013 and February 2015, Eghbali had an arrangement with New Millennium Escrow Inc. that enabled him to offer “no-cost” loans to clients that might have gone elsewhere for less expensive loans. As a result of this arrangement, Eghbali referred nearly all his clients to New Millennium.

“We have taken action against an individual loan officer for illegal mortgage fee-shifting,” said CFPB Director Richard Cordray. “This should send a strong message that the law must be followed not only by large financial institutions, but also by the individuals who work for them.”

 

Published
May 27, 2016
Mortgage Forbearance Changes Create Challenges for Servicers

65% Of All Plans Would Expire By The End of 2021

Regulation and Compliance
Aug 02, 2021
CFPB Reports Trends In Financial Assistance

The latest developments from this study reveal that most consumers have exited the payment assistance they received at the start of the pandemic.

Analysis and Data
Jul 14, 2021
CFPB Orders GreenSky To Refund $9M In Unauthorized Loans

The consent order requires GreenSky to refund or cancel up to $9 million in loans for the customers harmed by this illegal conduct.

Regulation and Compliance
Jul 13, 2021
CFPB Warns Landlords And Consumer Reporting Agencies To Report Accurate Rental Information

Inaccurate rental or eviction information can unfairly block families and individuals from safe, affordable housing.

Regulation and Compliance
Jul 01, 2021
FHFA Mandates Quarterly Fair Lending Reports

FHFA issued orders for all enterprises to submit quarterly Fair Lending Reports with data and information to improve the FHFA’s capabilities. 

Regulation and Compliance
Jul 01, 2021
FHFA Follows CFPB To Protect Borrowers Once COVID-19 Foreclosure And Eviction Moratoriums End

The Federal Housing Finance Agency made it clear that Fannie Mae and Freddie Mac servicers are not permitted to make first notice or filing for foreclosure that would be prohibited by the CFPB protections for borrowers affected by COVID-19.

Regulation and Compliance
Jun 30, 2021