Posts Tagged ‘civil penalties’

CFPB Sues Lender for Violating Compensation Rule

July 25th, 2013 Comments off

A mortgage lender is being sued by the Consumer Financial Protection Bureau (CFPB) for allegedly paying bonuses to loan originators that charged consumers higher interest rates in violation of the loan officer compensation rule. The 85th largest lender in the country, Castle and Cooke Mortgage LLC of Salt Lake City is said to have paid 150 loan officers quarterly bonuses ranging from $6,100 to $8,700 for leading borrowers into higher-priced loans. The Bureau


says loan officers who did not charge higher rates did not receive bonuses, and that 1,100 of the loans were illegal. According to what MHProNews has learned from nationalmortgagenews, C&C originated $332 million in loans in the first quarter. The lawsuit seeks restitution and civil penalties, and specifically cites company president Matthew Pineda and senior vice president Buck Hawkins. “We are taking action against the type of practices that precipitated the financial crisis,” said CFPB director Richard Cordray.

(Photo credit: top, ABCNews; bottom, HousingWire)

Fraud Charges Levied against Manufactured Home Seller

June 26th, 2013 Comments off

A Shannon, North Carolina man has been charged with defrauding 45 people of $437,702 by not delivering manufactured homes they had purchased, and is in jail under a $800,000 secured bond. Bradley Malcolm McMillian, 38, is facing two counts of obtaining more than $100,000 worth of property by false pretense, nine counts of selling manufactured homes without a license, and obtaining property by false pretense. NC Attorney General Roy Cooper filed a lawsuit in June 2012 against McMillian, after 52 consumer complaints were filed about McMillian Properties. Banned by a consent judgment from doing business in Robeson County, the informs MHProNews McMillian has also been ordered to pay $100,000 in civil penalties.

(Photo credit:–Bradley Malcolm McMillian)

Manufactured Home Community Owners Agree to Settlement

June 7th, 2013 Comments off

According to newszap, Delaware Attorney General Beau Biden issued an order requiring PFL Limited Partnership, owner of Layton’s Riviera MHC in Sussex County in southern Delaware, to better protect its residents. MHProNews has learned an investigation by the state’s Consumer Protection Unit (CPU) revealed numerous violations of the Manufactured Home Owners and Community Owners Act. Specifically, under an agreement with the CPU, PFL has to remove debris remaining from a deserted manufactured home that was destroyed in a fire, and to repair and maintain community roads so they are safe. The company was also ordered to pay $3,500 in investigative costs and attorneys’ fees, and $10k in civil penalties to the state. As long as PFL abides by the agreement the civil penalties will be suspended, but future violations may result in a $25,000 fine per incident.

(Photo credit: MHProNews–MHC))

Company Banned from Dealing in Factory-built Homes

May 8th, 2013 Comments off

Robeson County, North Carolina manufactured home dealer McMillan Properties has been banned from doing business by Attorney General Roy Cooper for selling substandard homes and homes that were never delivered. According to what carolinalive tells MHProNews, 52 consumers in the Robeson County area have filed complaints against Bradley and Sherry McMillan who owe $359,015 as part of a consent judgment issued by Wake County Superior Court Judge Howard Manning. Cooper filed suit in June 2012 against the McMillans,”Tricking consumers into paying for homes that aren’t safe to live in is unfair and illegal,” Cooper said in a news release issued Wednesday. “Homebuyers who were treated wrong now have a chance to get some money back, and I encourage any consumer who may be eligible for a refund to file a complaint with my office today.” The couple so far has failed to repay any of the money. If they violate the ban they will owe $100,000 in civil penalties.

(Image credit: HousingWire)

Couple Agree to Restitution Agreement

May 11th, 2012 Comments off

According to LegalNewsLine, a Ventnor, New Jersey couple charged with a fraudulent modular investment opportunity agreed to pay $35,000 in restitution and civil penalties by Aug. 31 as a settlement. As announced by NJ Attorney General Jeffrey Chiesa, if the defendants, Dennis and Maria Bracall, miss the deadline they and their company will have to pay $60,000. has learned the Bracall’s allegedly represented to two investors their company, Pro-Tech Custom Modular Homes, Inc., would build ten luxury modular homes on land they owned. The investors allegedly paid $125,000 each and were told they would earn $17,500 on their investment. None of the money was returned to the investors, according to the settlement, and the Bracall’s allegedly owned only two of the lots.

(Photo credit: LegalNewsLine—NJ Attorney Gen. Jeffrey Chisea)