Missouri mortgage lender Fidelity Mortgage Corp. and its former owner and current president, Mark Figert, have been fined $81,076 by the Consumer Financial Protection Bureau (CFPB) for allegedly funneling illegal kickbacks to a bank in exchange for real estate referrals.
The CFPB alleges that the St. Louis-based non-depository mortgage lender entered into an agreement with a un-named bank in which the bank referred potential borrowers to Fidelity in exchange for kickbacks – a violation of the Real Estate Settlement Procedures Act.
The kickbacks were disguised as inflated lease payments for renting office space within the bank, the CFPB says in a release.
As per the terms of the CFPB's consent order, Fidelity and Figert must pay back all of the proceeds from the unlawfully referred business – a total of $27,076 that will be deposited in the U.S. Treasury.
Additionally, the CFPB is ordering Fidelity and Figert to pay a $54,000 civil penalty.
To view the consent order, click here.