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Wells Kickback Scheme Involved More Than 100 LOs, Garnered Multiple Warnings

Thursday, January 22, 2015

Wells Fargo and JPMorgan Chase along with a former Wells Fargo employee and his wife are the subjects of consent orders filed by the Maryland Attorney General and the Consumer Financial Protection Bureau (CFPB).  The orders ask for close to $37 million in civil penalties and consumer redress, by far the bulk of the moneys coming from Wells Fargo.

In announcing the orders, filed Thursday in federal court, CFPB said that they had taken action against the group because of an illegal marketing services kickback scheme they are alleged to have engaged in with Genuine Title.  The Maryland-based title company, which went out of business in April 2014, had provided the banks' loan officers with cash and services in return for which the loan officers agreed to increase the title company's business by referring homebuyers to them for closing services.  The services provided by Genuine were described by CFPB as including "purchasing, analyzing, and providing data on consumers and creating letters with the banks' logos that the company had printed, folded, stuffed into envelopes, and mailed."

 

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