Legal Blog

Compensation and Compliance Matters: CFPB Gets Serious on Loan Officer Comp

For years, many have been asking when the Consumer Financial Protection Bureau was going to get aggressive when it comes to pursuing lenders it believes skirted the loan officer compensation rules. It appears that time is now. Two lenders recently have settled claims they violated the LO compensation laws. RPM Mortgage has agreed to pay $18 million dollars to redress alleged violations, as well as an additional $1 million fine. Further, the lender’s president also has agreed to pay a $1 million personal fine for his role in implementing a comp plan the CFPB claimed was illegal. Click here to read the entire article on National Mortgage News. akaren@offitkurman.com  | 240.507.1740 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.

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