June 04, 2015

Law360 quotes Jonathan Pompan on CFPB appeal and penalty hike

1 min

Venable partner Jonathan L. Pompan was quoted in a June 4, 2015 Law360 article on Consumer Financial Protection Bureau (CFPB) Director Richard Cordray's move to increase a penalty against a company in an administrative appeal. Cordray agreed with an Administrative Law judge's decision that a mortgage services provider engaged in a mortgage insurance kickback scheme under the Real Estate Settlement Procedures Act, but increased the company's penalty from $6.4 million to $109 million.

"The move is definitely a show of force," said Pompan. "It would be unusual for Cordray or any agency head to not back the initial enforcement decision; the reversal and going beyond the ALJ's ruling reflects the difficulties defendants can face with the CFPB appellate process."