CFPB takes action against mortgage lender for illegal activities
The Consumer Financial Protection Bureau (CFPB) has taken action against Freedom Mortgage Corporation (Freedom), handing down a $1.75 million fine to the mortgage lender for providing alleged illegal incentives to real estate brokers in exchange for mortgage loan referrals. Freedom has also been ordered to cease all unlawful activities.
Real estate brokers and agents reportedly received incentives, such as cash payments, paid subscription services, and catered parties, for referring prospective home buyers to Freedom for mortgage loans. This conduct is a violation of the Real Estate Settlement Procedures Act and its implementing regulation.
In line with this, CFPB also issued a separate order against Realty Connect USA Long Island (Realty Connect), a real estate broker, for accepting illegal incentives from Freedom. Realty Connect will pay a fine of $200,000 and has been ordered to cease unlawful activities.