RPM Mortgage is an independently owned and operated

mortgage A mortgage loan or simply mortgage (), in civil law (legal system), civil law jurisdictions known also as a hypothec loan, is a loan used either by purchasers of real property to raise funds to buy real estate, or by existing property owners t ...

lender and

broker A broker is a person or entity that arranges transactions between a buyer and a seller. This may be done for a commission when the deal is executed. A broker who also acts as a seller or as a buyer becomes a principal party to the deal. Neither ...

based in

Alamo, California Alamo ( Spanish: ''Álamo''; meaning " Poplar tree") is an unincorporated community and census-designated place (CDP) in Contra Costa County, California, in the United States. It is a suburb located in the San Francisco Bay Area's East Bay r ...

. The company’s roots in the

Bay Area The San Francisco Bay Area, commonly known as the Bay Area, is a region of California surrounding and including San Francisco Bay, and anchored by the cities of Oakland, San Francisco, and San Jose. The Association of Bay Area Governments ...

stem back to 1986. RPM Mortgage is a retail only lender and a direct seller and servicer of

Fannie Mae The Federal National Mortgage Association (FNMA), commonly known as Fannie Mae, is a United States government-sponsored enterprise (GSE) and, since 1968, a publicly traded company. Founded in 1938 during the Great Depression as part of the New ...

loans. In 2013, the company provided $5.9 billion in funding in the form of residential mortgages.

History

The company has been rooted in the Bay Area since 1986. In 1991, Rob and Tracey Hirt invested in a small, start-up mortgage company– Residential Pacific Mortgage. In 1996, Rob was awarded the ownership rights to re-acquire Residential Pacific Mortgage, which eventually became RPM Mortgage. Rob has led RPM to become one of the top 15 private, retail mortgage lenders in the U.S. according to the Scotsman Guide 2015 rankings. Since its first evaluation from Standard & Poor's in 2012, RPM remains the only privately owned U.S residential mortgage originator to consistently receive above average ratings across all eight key areas S&P analyzes. In 2011, the company was sued by the

Federal Deposit Insurance Corporation The Federal Deposit Insurance Corporation (FDIC) is a State-owned enterprises of the United States, United States government corporation supplying deposit insurance to depositors in American commercial banks and savings banks. The FDIC was cr ...

for "breach of contract, negligence and negligent hiring/supervision". They later settled out of court for $550,000. On 4 June 2015, The

Consumer Financial Protection Bureau The Consumer Financial Protection Bureau (CFPB) is an independent agency of the United States government responsible for consumer protection in the financial sector. CFPB's jurisdiction includes banks, credit unions, securities firms, Payday lo ...

filed a complaint in federal district court against RPM Mortgage and its CEO, Erwin Robert Hirt, for illegally paying bonuses and higher commissions to loan originators to incentivize them to steer consumers into costlier mortgages, illegally profiting tens of millions of dollars from 2011 to 2013. They were fined $20 million including $18 million as redress to consumers with an additional $2 million as a civil penalty, half of which is to be paid by CEO Robert Hirt. "RPM rewarded its loan officers for steering consumers into mortgages with higher interest rates," said CFPB Director Richard Cordray in a press release. "Today we are putting an end to RPM's unlawful practices and holding Robert Hirt personally responsible for his involvement in them."

References

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External links

RPM Mortgage, Inc.
Banks based in California Companies based in Contra Costa County, California Mortgage lenders of the United States