Consumer Bureau Action Tracker

CFPB v. Franklin Loan Corporation


State

Nationwide

target

Franklin Loan Corporation

Topics

Enforcement

In November 2014, CFPB ordered Franklin Loan Corporation reimburse its customers the $730,000 it had given to 32 loan officers, “incentivizing” them to “guide customers into mortgages with higher interest rates.” The CFPB alleged Franklin Loan had violated “the Federal Reserve Board’s Loan Originator Compensation rule which prohibits tying a mortgage broker’s compensation to the terms of a loan.”

  • “The Consumer Financial Protection Bureau slapped Franklin Loan Corporation with a $730,000 fine on Thursday for allegedly incentivizing loan officers to guide customers into mortgages with higher interest rates.” [Ian McKendry, “CFPB Fines Franklin Loan for Ripping Off Customers”, American Banker, 11/14/14]

Status

Inactive or Resolved


5:14-cv-02324 11/13/2014 11/26/2014

CFPB Takes Action Against Franklin Loan Corporation for Steering Consumers into Costlier Mortgages
http://www.consumerfinance.gov/policy-compliance/enforcement/actions/franklin-loan-corporation/

  • Consumer Financial Protection Bureau (CFPB)
  • Federal district court case
  • U.S. District Court for the Central District of California
  • Nonbank
  • $730,000
  • 1,400

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