Consumer Bureau Action Tracker

CFPB v. Castle & Cooke Mortgage, LLC., Matthew A. Pineda, and Buck L. Hawkins


State

Nationwide

target

Castle & Cooke Mortgage LLC, Matthew A. Pineda, Buck L. Hawkins

Topics

Enforcement, Mortgages

In July 2013, the CFPB sued Castle & Cooke Mortgage, LLC., and its top executives, Matthew Pineda and Buck Hawkins, for “paying illegal bonuses to employees who steered home buyers toward higher-interest loans.” Castle & Cooke Mortgage allegedly ran a “quarterly bonus program that paid $6,100 to $8,700 to loan officers who persuaded consumers to take out pricier mortgages.” In November 2013, the CFPB reached a settlement with Castle & Cooke Mortgage, Pineda, and Hawkins requiring them to “pay $9.2 million for refunds to consumers who took out mortgages with higher interest rates than they needed to and for which loan officers received a bonus as a result.” They also agreed to “pay $4 million in fines.”

  • The CFPB sued Castle & Cooke Mortgage and its top executives, Matthew Pineda and Buck Hawkins, for allegedly “paying illegal bonuses to employees who steered home buyers toward higher-interest loans.” Castle & Cooke Mortgage allegedly ran a “quarterly bonus program that paid $6,100 to $8,700 to loan officers who persuaded consumers to take out pricier mortgages.” The CFPB claimed that the loan officers “who did not push customers into higher interest loans did not receive bonuses” and that “more than 1,100 such bonuses were paid beginning in April 2011” and “tens of thousands of consumers could have been affected.” [Jim Puzzanghera, “Mortgage lender accused of paying illegal bonuses for costlier loans,” Los Angeles Times, 7/23/13]
  • The CFPB reached a settlement with Castle & Cooke Mortgage, Pineda, and Hawkins requiring them to “pay $9.2 million for refunds to consumers who took out mortgages with higher interest rates than they needed to and for which loan officers received a bonus as a result.” They also agreed to “pay $4 million in fines.” [Tom Harvey, “Utah company agrees to $13M mortgage settlement,” The Salt Lake Tribune, 11/11/13]

Status

Inactive or Resolved


2:13CV684DAK 7/23/2013 11/12/2013

CFPB Takes Action Against Castle & Cooke for Paying Employees to Steer Consumers into Expensive Mortgages; CFPB Takes Action Against Castle & Cooke For Steering Consumers Into Costlier Mortgages
http://www.consumerfinance.gov/policy-compliance/enforcement/actions/castle-cooke-mortgage/

  • Consumer Financial Protection Bureau (CFPB)
  • Federal district court case
  • U.S. District Court District of Utah Central Division
  • Nonbank
  • $13,200,000
  • Not Available

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