In June 2015, the CFPB issued a consent order to Guarantee Mortgage for allegedly violating “rules dealing with loan originator compensation.” The CFPB alleged that Guarantee Mortgage “in California was paying its branch managers partly based on the interest rates of the loans they closed, which could influence their decision to place consumers in higher-cost loans.” Guarantee Mortgage agreed to pay a $228,000 fine.

• The CFPB issued a consent order to Guarantee Mortgage Corporation. [CFPB file no. 2015-CFPB-0011 (Guarantee Mortgage Corporation), filed 06/05/15]

• The CFPB ordered Guarantee Mortgage to “pay a $228,000 fine” for allegedly violating “rules dealing with loan originator compensation.” The CFPB alleged that Guarantee Mortgage “in California was paying its branch managers partly based on the interest rates of the loans they closed, which could influence their decision to place consumers in higher-cost loans.” [Rachel Witkowski, “Lender Improperly Paid Originators Based on Rates,” CFPB says,” National Mortgage News, 06/05/15]

• The CFPB alleged that Guarantee Mortgage “violated the Loan Originator Compensation Rule, which protects consumers from being steered into costlier loans by prohibiting loan originators from receiving compensation based on the interest rates of the loans they close.” [Press Release, “CFPB fines defunct Guarantee Mortgage $228,000, American Land Title Association, 06/08/15]