Wells Fargo, JP Morgan Fined Over ‘Illegal Mortgage Kickbacks’
The Consumer Financial Protection Bureau announced on Thursday that it and the Maryland Attorney General’s Office have ordered Wells Fargo and JP Morgan Chase to collectively pay $35.7 million to settle charges that they once participated in an illegal marketing kickback scheme.
According to Reuters, Wells Fargo will be responsible for paying a $24 million penalty, plus another $10.8 million in redress to consumers, while JP Morgan will pay a $600,000 penalty plus another $300,000 in redress.
“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 a statement.
Image via flickr/401(k) 2012