Wells Fargo and JPMorgan Chase have been ordered to pay $35.7 million in penalties for "illegal mortgage kickbacks" as a result of the joint investigation by the Consumer Financial Protection Bureau, the state of Maryland and the Maryland Insurance Administration.
"These banks allowed their loan officers to focus on their own illegal financial gain rather than on treating consumers fairly. Our action today to address these practices should serve as a warning for all those in the mortgage market," CFPB Director Richard Cordray said.
In violation of the Real Estate Settlement Procedures Act, the CFPB said both banks allegedly participated in an "illegal marketing-services-kickback scheme" with Genuine Title of Maryland, which went out of business in April of last year.
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