The Consumer Financial Protection Bureau has entered into a consent order with another lender that had been violating the loan officer compensation laws. Franklin Loan Corp. violated the compensation rule by paying quarterly bonuses based upon the terms of closed loans into “expense accounts” for use by the loan officers, according to the CFPB. The Consent Decree requires the company to pay $730,000 in damages based upon the allegation that the company improperly paid 32 loan officers these bonuses. In addition for up to five years, the company will have to provide the consent decree to any person associated with the company whose job duties are impacted thereby. In addition, a lender can eventually face a civil lawsuit for the same alleged violations.
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Ari Karen is an experienced litigator and speaker who has focused his practice in representing financial institutions in both government investigations and litigation before state and federal trial and appellate courts nationwide.
Mr. Karen’s practice is diverse, representing clients on matters concerning banking regulations, Dodd Frank financial reform laws, contractual disputes, employment and labor statutes, wage-hour class actions, employment discrimination and fair lending matters, whistleblower complaints and non-competition claims, among others.