The CFPB took action against a former Wells Fargo employee for an illegal mortgage-fee-shifting scheme. The CFPB found that David Eghbali referred a substantial number of loan closings to a single escrow company, which shifted its fees from some customers to others at Eghbali’s request. Eghbali could then manipulate loan costs and ultimately increase the number of loans he closed, increasing his commissions. The CFPB filed an administrative consent order requiring Eghbali to pay an $85,000 penalty and banning him from working in the mortgage industry for one year.
CFPB Takes Action Against Former Wells Fargo Employee for Illegal Mortgage Fee-Shifting