Links in “Fines, Penalties, Suits, and Settlements”

The FTC will be mailing $467,000 in checks to consumers who lost money due to a mortgage relief service scheme by Jackson, Crowder & Associates and Crowder Law Group. [6/8/15]

Guarantee Mortgage Corporation pays a $228,000 penalty for paying its branch managers, in part, on the interest rates of the loans they closed – which is against the Loan Originator Compensation Rule. [6/8/15]

The complaint alleges that RPM Mortgage and its CEO incentivized loan originators to steer consumers into costlier mortgages. In addition to $18 million in redress to consumers and a $1 million penalty, the complaint is also seeking $1 million in civil penalties from the CEO. [6/5/15]

CFPB Director Richard Cordray issued a decision in the first appeal of a Bureau administrative enforcement proceeding against mortgage lender PHH upholding the January 2014 action. This action charged PHH with illegally referred consumers to mortgage insurers in exchange for kickbacks. PHH is required to avoid further violations and to pay $109 million to the Bureau. 6/5/15]

The CFPB filed a complaint in federal district court and is seeking a combined $20 million in penalties for redress against RPM Mortgage, Inc. and its CEO, Erwin Robert Hirt. The company was found illegally paying bonuses and higher commissions to loan originators as incentives to steer consumers into costlier mortgages. [6/5/15]

FinCEN has fined King Mail & Wireless Inc. $12,000 today for “willful and repeated violations of the Bank Secrecy Act.” [6/2/15]

Following news that five large banks pled guilty to criminal actions, ICBA tells regulators that the fines amount to slaps on the wrist and demands that regulators adopt enforcement policies with the megabanks that are consistent with those enforced on smaller banks. "No bank should be too big to fail nor too big to jail." [6/2/15]

The CFPB and the State of Florida have obtained a sizable judgment against the Hoffman Law Group, affiliated companies, and individuals for a scam that tricked consumers into paying illegal advance fees and joining frivolous lawsuits in order to gain relief from foreclosures. The companies used false advertising and even duped consumers into thinking the law firm was providing legal representation. [6/1/15]

Bank of America has received a $30 million civil money penalty due to violations of the Servicemembers Civil Relief Act (SCRA). The bank is ordered to step up its act when it comes to SCRA compliance and fix the 73,000 customer accounts affected by its non-compliance. [6/1/15]

Spoiler alert: Hoffman Law Group loses. [6/1/15]