Legal Newsline

Tuesday, April 7, 2020

CFPB charges former Wells Fargo employee with allegations of mortgage-fee shifting

By Mark Iandolo | Jun 7, 2016

Law money 12

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.

Want to get notified whenever we write about any of these organizations ?

Sign-up Next time we write about any of these organizations, we'll email you a link to the story. You may edit your settings or unsubscribe at any time.

Organizations in this Story

Consumer Financial Protection BureauWells Fargo & Company