A class action lawsuit filed this week against loanDepot, alleging steering and violations of loan originator (LO) compensation rules, has brought to light practices used by lenders for years that lacked clear guidance from the Consumer Financial Protection Bureau (CFPB). 

Attorneys told HousingWire that lenders often allow compensation tied to lead source and internal loan transfers—a practice highlighted in the loanDepot case. According to the attorneys, the case calls into question the tactics lenders use to stay competitive and compliant. 

The suit accuses loanDepot of pressuring LOs to offer borrowers higher-rate loans in exchange details ⇒

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