Prospect Mortgage LLC
Enforcement, Mortgage Origination
The CFPB fined Prospect Mortgage and three real-estate brokers a combined $3.99 million for operating an alleged “illegal kickback” scheme. The CFPB alleged that Prospect Mortgage “kept track of referrals brokers made” and “doled out payments to them based on those referrals.” The complaint also alleged “that Prospect paid brokers to require consumers to pre-qualify with Prospect” despite qualifications from other lenders. The CFPB alleged that brokers Keller Williams Mid-Willamette, Re/Max Gold Coast Realtors and mortgage servicer Planet Home Lending LLC accepted the kickbacks. Prospect Mortgage agreed to pay $3.5 million in fines and the other three firms paid a total of $495,000 in fines. None of the companies admitted wrongdoing; however, all promised not to engage in the alleged activity in the future.
Inactive or Resolved