CFPB orders 1st Alliance Lending to pay $83,000 for self-reported RESPA violations

On Monday, the Consumer Financial Protection Bureau (CFPB) ordered 1st Alliance Lending, LLC to pay an $83,000 civil money penalty for self-reported violations of the Real Estate Settlement Procedures Act (RESPA). The Connecticut mortgage lender, which "focuses primarily on providing loss-mitigation financing to distressed borrowers," obtains troubled mortgages from mortgage servicers and "reaches out to consumers to offer them new loans with reduced principal amounts under federally related mortgage programs." The company notified the bureau in 2013 that it believed it had violated RESPA by paying unearned origination and loss-mitigation fees to a hedge fund after it had ended its arrangement with the hedge fund and its affiliates. The hedge fund affiliates received payments from 83 1st Alliance loans made between August 2011 and April 2012. For more, read the full news release.

Consumer Financial Protection Bureau