NEW YORK (CNN) -- CNN Money's Maribel Aber has your top business and financial news on this Wednesday, July 24.
Mortgage lender accused of paying illegal bonuses for costlier loans
The Consumer Financial Protection Bureau on Tuesday sued Castle & Cooke Mortgage, accusing it of paying illegal bonuses to employees who steered home buyers toward higher-interest loans. The suit marks the first time a company has been targeted under new federal loan-origination compensation rules adopted after a mountain of bad home loans set off a global financial crisis. The bureau sued in federal court in Utah, where Castle & Cooke is based, accusing two of its top executives of running a quarterly bonus program that paid $6,100 to $8,700 to loan officers who persuaded consumers to take out pricier mortgages.
Michigan court clears way for Detroit bankruptcy to proceed
A Michigan judge's attempt to halt Detroit's bankruptcy proceeding was blocked Tuesday by a higher court. At issue: Does the Michigan constitution bar the federal bankruptcy from going forward? Do the state courts have any power to stop a federal bankruptcy case? Tuesday's ruling by the Michigan Court of Appeals stays an order by Ingham County Circuit Judge Rosemarie Aquilina issued last Friday. Aquilina had ruled that the bankruptcy violates a provision of the Michigan constitution that prohibits the cutting of pension and retirement benefits.
Sallie Mae says post-recession, parents paying less for college
A survey released Tuesday by Sallie Mae found that parents are now contributing less of their income for college than they did four years ago. A survey released Tuesday by Sallie Mae found that parents are now contributing less of their income for college than they did four years ago. Instead, families are relying more on grants and scholarships to cover the costs of higher education. They are also cutting expenses from the traditional college experience. Fewer students are living on campus, and they are fast-tracking coursework in order to finish college sooner.
10 most expensive cities in the world
$8 for a cup of coffee in Moscow. $200 for a pair of jeans in Luanda. These cities charge top dollar for the most basic purchases, according to Mercer's survey of 214 cities.