Today the Washington State Department of Financial Institutions (DFI) announced it entered into a Consent Order with Prospect Mortgage, LLC (NMLS ID 3296).
The Consent Order was the result of an examination conducted by DFI and seven states as part of a routine Multi-State Mortgage Committee (MMC) joint examination. The multi-state examination conducted by eight states revealed a pattern of charging improperly disclosed and unsupported fees charged by the company’s subsidiary C2C Settlement Service.
The order sets forth that the company will provide restitution to 619 Washington borrowers, each receiving $40.00 with interest of 10% per annum from the date the fee was charged. Prospect shall pay an administrative penalty to DFI in the amount of $111,900.
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Background Information
The Multi-State Mortgage Committee (MMC) was created in 2008 by state financial regulators through the Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR). The MMC is charged with coordinating the examination, investigation, and supervision of those mortgage lenders and brokers operating in more than one state. The MMC is comprised of 10 members who are elected by the boards of CSBS and AARMR.