The Consumer Financial Protection Bureau (CFPB) has taken motion against Freedom Mortgage Corporation (Freedom), handing down a $1.75 million high quality to the mortgage lender for providing alleged illegal incentives to real estate brokers in exchange for mortgage loan referrals. Freedom has also been ordered to stop all illegal activities.
Real estate brokers and agents reportedly received incentives, corresponding to money payments, paid subscription services, and catered parties, for referring prospective home buyers to Freedom for mortgage loans. This conduct is a violation of the Real Estate Settlement Procedures Act and its implementing regulation.
In line with this, CFPB also issued a separate order against Realty Connect USA Long Island (Realty Connect), an actual estate broker, for accepting illegal incentives from Freedom. Realty Connect can pay a high quality of $200,000 and has been ordered to stop illegal activities.