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| Home : 1st Alliance and CFPB Settle in Agreement |
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Mar 07
2014 |
1st Alliance and CFPB Settle in Agreement |
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Mortgage company follows "responsible conduct" while self-reporting an isolated issue. |
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After an unintentional violation of the Real Estate Settlement Procedures Act (RESPA) on Feb. 20, 2014, mortgage agency 1st Alliance Lending, LLC will be paying $83,000 as a civil-money penalty. The Consumer Financial Protection Bureau (CFPB) and 1st Alliance Lending, LLC worked through a voluntary consent order for the self-reported violation.
1st Alliance self-reported the issue and gathered counsel to review real-estate settlement fees that were split, an unintended and technical move in 2010 with a former hedge fund. The following year, 1st Alliance ended its arrangement with the fund. Although the provider no longer financed with the company's mortgages, 1st Alliance continued to split fees unintentionally.
The violation was disclosed and reported to regulators upon discovery. 1st Alliance and CFPB promptly cooperated together while the issue was analyzed. The violation was limited to the hedge fund that gave warehouse funding to the company. 1st Alliance's general counsel, David Ward, said the agreement with the CFPB will help consumers avoid the loss of their homes through sustainable home ownership, principal reduction and affordability.
The CFPB released a bulletin in June of 2013 that encouraged financial institutions to act with "responsible conduct." After proving such efforts, 1st Alliance confidently showed pride with the CFPB's acknowledgment of guidance. As a company known for putting their consumers first, 1st Alliance has gained insight and experience with how "responsible conduct" can positively impact the outcome of an unintentional move. A CFPB director, Richard Cordray, said that the bureau will continue to encourage self-reporting and the cooperation of mortgage companies to resolve such violations.
In Bulletin 2013-06, the CFPB described four factors to evaluate responsible conduct. The bulletin stated, "Self-policing, self-reporting, remediation and cooperation with the Bureau's investigation are unquestionably important in promoting the best interest of consumers." 1st Alliance's actions throughout the settlement process agreed with these factors.
Based out of East Hartford, Conn., 1st Alliance Lending is a professional mortgage company. As a lender, the company focuses its efforts on leading the country in the principal of reduction refinances. 1st Alliance guides their borrowers through the home loan process and offers several types of mortgages, including the "Back to Work - Extenuating Circumstances" loan. The company has relationships with multiple mortgage agencies across the U.S. and has helped thousands of Americans begin and maintain successful mortgages in 46 states. |
| Source:http://www.1888pressrelease.com/1st-alliance-and-cfpb-settle-in-agreement-pr-515466.html |
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