Mark Iandolo Jun. 7, 2016, 6:24pm


WASHINGTON (Legal Newsline) – The Consumer Financial Protection Bureau (CFPB) announced that it took action against former Wells Fargo employee David Eghbali for an alleged illegal mortgage fee-shifting scheme.

According to the CFPB, Eghbali conducted a scheme in which he referred loan closings to a single escrow company – which shifted its fees from some customers to others at Eghbali’s request – then manipulated loan costs. This led to an increase in the number loans closed and hence an increase in his commissions.

The CFPB took action under the Dodd-Frank Wall Street Reform and Consumer Protection Act, which allows the organization to pursue institutions or individuals engaging in allegedly unfair practices. Eghbali will pay an $85,000 penalty and is barred for one year from working in the mortgage industry.

“We have taken action against an individual loan officer for illegal mortgage fee-shifting,” CFPB Director Richard Cordray said. “This should send a strong message that the law must be followed not only by large financial institutions, but also by the individuals who work for them.”

Eghbali was a loan officer for a Wells Fargo branch in Beverly Hills, California.

Organizations in this Story

Consumer Financial Protection Bureau
1700 G St NW
Washington, DC 20552

Wells Fargo
402 Montgomery Street
San Francisco, CA 94104

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