A loan officer who operated from an office in Beverly Hills, California, has been fined and banned from the mortgage industry for a year over alleged fee shifting.
David Eghbali worked as a mortgage loan originator for Wells Fargo Bank, N.A.,
from November 2007 until July 2015 at a branch on Wilshire Blvd. in Beverly Hills.
He directed his mortgage closings to New Millennium Escrow Inc., a firm that facilitated the processing and closing, or settlement, of his real-estate loan transactions.
But
Eghbali is accused by the Consumer Financial Protection Bureau of a scheme he carried out with New Millennium.
According to a consent order issued by the regulator, he and New Millennium manipulated escrow fees.
Eghbali directed New Millennium to shift fees from no-cost refinance transactions to others — enabling him to stay within Wells Fargo’s pricing guidelines.
The scheme allegedly made it possible to close more loans — earning bonuses and more commissions in the process and enabling him to attain Well Fargo’s prestigious “President’s Club” status achieved by top-production originators at the company.
From November 2013 through February 2013, more than a hundred loans were referred by
Eghbali to New Millennium. In return for the business, he allegedly received fees, kickbacks or things of value — in violation of the Real Estate Settlement Procedures Act.
Since he was covered under the Consumer Financial Protection Act of 2010, the RESPA violations also constituted violations of the CFPA.
The CFPB issued a consent order against Eghbali
prohibiting him from participating in the mortgage industry for a year.
In addition, he must pay an $85,000 civil money penalty.
