Skip to main content

CFPB Slaps $85K Fine on Ex-Loan Officer

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.”

 

About the author
Published
May 27, 2016
Economists Less Confident Rates Will Drop Following Fed Decision

After sixth consecutive month with no change, the likelihood of cuts in 2024 feels "more out of reach."

FHFA Final Rule Released

Rule codifies equitable housing programs, GSE Plans

FDIC Announces Closure Of Republic First Bank

The Philadelphia-based lender's 32 branches will now be served by Fulton Bank

Mortgage Servicers Added To Junk-Fee Naughty List

New release from CFPB lays out areas of improvement, and concern, for mortgage servicers.

In Wake Of NAR Settlement, Dual Licensing Carries RESPA, Steering Risks

With the NAR settlement pending approval, lenders hot to hire buyers' agents ought to closely consider all the risks.

A California CRA Law Undercuts Itself

Who pays when compliance costs increase? Borrowers.