Bay Area-based RPM Mortgage fined $20 million over loan scheme

The "Follow This Story" feature will notify you when any articles related to this story are posted.

When you follow a story, the next time a related article is published — it could be days, weeks or months — you'll receive an email informing you of the update.

If you no longer want to follow a story, click the "Unfollow" link on that story. There's also an "Unfollow" link in every email notification we send you.

This tool is available only to subscribers; please make sure you're logged in if you want to follow a story.

Please note: This feature is available only to subscribers; make sure you're logged in if you want to follow a story.


ALAMO — A Northern California-based mortgage lender and its CEO have been fined $20 million for illegally paying bonuses and higher commissions to loan agents who steered consumers to loans with higher interest rates.

The Consumer Financial Protection Bureau says RPM Mortgage CEO Rob Hirt paid his employees bonuses to place clients in more expensive loans, earning tens of millions of dollars in payments from 2011 to 2013.

The Oakland Tribune reports Monday ( ) $18 million from the fine will be used to refund consumers affected by the scheme. Eligible mortgage holders will be notified by the bureau and receive refund checks in the mail.

The agency says that the other $2 million will go into the bureau's civil penalty fund.

According to its website, RPM has more than 70 branches throughout California, Oregon, Washington, Texas, Arizona and Colorado. The company has North Bay branches in Sonoma, Napa, Mill Valley and San Rafael.


Information from: The Oakland Tribune,


Show Comment

Our Network

Sonoma Index-Tribune
Petaluma Argus Courier
North Bay Business Journal
Sonoma Magazine
Bite Club Eats
La Prensa Sonoma
Emerald Report
Spirited Magazine