Consumer Bureau Action Tracker

CFPB – Prospect Mortgage LLC, Planet Home Lending LLC, Keller Williams Mid-Willamette, Re/Max Gold Coast Realtors


State

Nationwide

target

Prospect Mortgage LLC

Topics

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.

  • On January 31, 2017, the CFPB issued a consent order against Prospect Mortgage LLC. [CFPB Consent Order, file no. 2017-CFPB-0006, filed 01/31/17]
  • “Specifically, [the CFPB] charged that Prospect, in marketing agreements, kept track of referrals brokers made and then doled out payments to them based on those referrals, instead of marketing services. [The CFPB] also alleged that Prospect paid brokers to require consumers to pre-qualify with Prospect, even if they were already qualified through another lender.” [Andrew Khouri, “Valley mortgage lender Prospect Mortgage to pay $3.5 million to settle kickback charges”, Los Angeles Times, 01/31/17]
  • While none of the companies admitted wrongdoing in their settlements, “all agreed not to engage in the alleged illegal practices in the future.” [Bennett Hall, “Local realty firm named in mortgage scheme”, Corvalis Gazette-Times, 02/03/17]

Status

Inactive or Resolved


2017-CFPB-0006 1/31/2017 1/31/2017

CFPB Orders Prospect Mortgage to Pay $3.5 Million Fine for Illegal Kickback Scheme
http://www.consumerfinance.gov/policy-compliance/enforcement/actions/prospect-mortgage-llc/

  • Consumer Financial Protection Bureau (CFPB)
  • Administrative filing
  • None
  • Nonbank
  • $3,500,000
  • Not Available

Close

Join The Fight!

We need your help to hold powerful special interests accountable and empower hardworking Americans. Join our fight today!