Utah lender accused of paying incentives for higher-rate mortgages

The Consumer Financial Protection Bureau has filed a complaint against Utah-based Castle & Cooke Mortgage LLC, and two of its officers, claiming the company gave illegal bonuses to more than 150 loan officers who steered consumers into mortgages with higher interest rates.

Castle & Cooke President Matthew Pineda told American Banker the company does not compensate loan officers based on loan terms, and denies the allegations. Pineda said the quarterly bonuses were based on five criteria, including the number of loans closed each quarter. Source: consumerfinance.gov.