Attorney General Brian E. Frosh and the Consumer Financial Protection Bureau said Wednesday that the leaders of a defunct Owings Mills title company and three loan officers had agreed to pay fines worth at least $660,000 collectively to settle allegations of a mortgage kickback scheme.
The complaint alleges that Genuine Title made cash payments and delivered marketing services to loan officers in exchange for referrals, in violation of the federal Real Estate Settlement Procedures Act and Maryland Consumer Protection Act. A $37.5 million settlement with Wells Fargo and JP Morgan Chase over similar allegations involving Genuine Title and more than 100 of the banks' loan officers was announced in January.
If approved by U.S. District Court of Maryland, the consent order bars Geunine Title's owner, Jay Zukerberg, and marketing director, Brandon Glickstein, from the mortgage industry for five years, in addition to financial penalties. Three loan officers — Adam Mandelberg, William Peterson and Angela Pobletts — also are barred for two years, in addition to penalties.
"This quid pro quo arrangement harmed homeowners as well as other businesses that play by the rules," said Attorney General Brian E. Frosh in a statement. "Working with our federal partners, we're determined to make sure these individuals pay the price for violating the law, just as we held mortgage banks accountable for their roles in the scheme."
Under the consent order, the defendants neither admit nor deny the allegations.
A fourth loan officer accused in the scheme, Gary Klopp, plans to fight the order. He declined to comment Wednesday, saying he would wait to air his case in court.