twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from

Mortgage News Reprints
Put entire stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed stories free on your Web site or for your RSS reader.

News Archives
Archive of stories by month going back to 1999.

Press Releases
Reports and announcements from

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map
Financial Regulation News | Mortgage Regulations
Bank and mortgage regulators, regulations and regulatory actions. Coverage of regulatory legislation and testimony.
Lender Hit With Consent Order for Illegal Kickbacks

Violations of RESPA alleged

Jan. 16, 2014

By Mortgage Daily staff

A mortgage lender out of Missouri has been hit with a consent order over illegal kickbacks paid to a bank for referrals.

The bank that was allegedly receiving the illegal kickback was Bank of Sullivan in Sullivan, Mo., an announcement Thursday said.

In return for referring loans to the lender, the bank received compensation that was masked as inflated lease payments.

The payments violated the Real Estate Settlement Procedures Act.

The lender was Fidelity Mortgage Corp., which was created in 2012 by Bank of Sullivan to acquire Fidelity Financial Mortgage Corp. from Mark Figert.

Figert stayed on as president of Fidelity after the sale and operated one of the lender offices in the St. Louis area.

It was Figert's idea to tie the lease payment amounts to the loan volume, according to the news release from the Consumer Financial Protection Bureau.

"The parties discussed 'anticipated loan volume' and a 'pipeline' of referrals," the CFPB said. "They negotiated a daily rental rate of $200, as well as an exclusivity clause requiring the bank
to promote only FFMC and vice-versa. Thus, the parties had an exclusive quid pro quo relationship-the bank referred to FFMC customers who wanted residential mortgages, while FFMC referred to the bank customers who wanted traditional banking services."

Around 20 loans were originated under the arrangement from March 2012 until November 2012, and $27,076 in originations fees were collected.

Fidelity paid the bank between $800 and $2000 for monthly rent even though typical rents for the are were between $600 and $900 a month.

Fidelity and Figert agreed to a consent order requiring them to pay back all of the origination fees plus a $54,000 civil penalty.

"Kickbacks harm consumers by hampering fair market competition and by unnecessarily increasing the costs of getting a mortgage," CFPB Director Richard Cordray said in the announcement. "The Consumer Financial Protection Bureau will continue to take action against schemes that steer consumers to lenders through unscrupulous and illegal business practices."

next story

back to current headlines

Mortgage Compliance News | Mortgage Compliance Newsletter | Mortgage Regulations
News about complying with mortgage laws, rules and regulations.

Logout forgot

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders