WASHINGTON—The Consumer Financial Protection Bureau Wednesday and the Maryland Attorney General took action against participants in a mortgage-kickback scheme.
In a complaint filed in federal court, the CFPB and Maryland allege that the Maryland-based title company’s executives and the named loan officers traded cash and marketing services in exchange for mortgage referrals. Under proposed consent orders filed Wednesday, if entered by the court, five of the six individual defendants would be banned from the mortgage industry and required to pay a total of $662,500 in redress and penalties.
The action will proceed against the remaining defendant. The announcement follows enforcement actions in January against Wells Fargo and JPMorgan Chase for their role in the scheme.
“Paying kickbacks for mortgage referrals is illegal, and it has been illegal for decades,” said CFPB Director Richard Cordray. “Secret and unlawful payments keep consumers in the dark and put honest businesses at a disadvantage, and the Consumer Bureau will continue to take action against them.”
Genuine Title was a Maryland-based title company that offered real estate closing services from 2005 until it went out of business in April 2014. The CFPB and Maryland Attorney General’s complaint names Genuine Title, LLC; Jay Zukerberg; Brandon Glickstein; Gary Klopp; Adam Mandelberg; William Peterson; Angela Pobletts; and a number of limited-liability companies controlled by certain defendants.