For the second time this month, a mortgage lender has agreed to settle allegations by the Golden State of illegal interest charges. The latest settlement also resolves charges of unlicensed servicing.
On Dec. 4, the California Department of Business Oversight announced that Nationstar Mortgage LLC, which does business as Mr. Cooper, agreed to a more than $9 million settlement.
Nationstar was accused of charging interest on nearly 50,000 new mortgages prior to the disbursement of loan proceeds — in violation of state law.
On Monday, the state announced that
Indian Land, South Carolina-based Movement Mortgage LLC has agreed to a more than $1.1 million settlement.
Movement allegedly charged at least 1,347 borrowers interest on home loans prior to the last business day before the loan proceeds were disbursed — a violation of California law. The violations were revealed through a 2016 regulatory examination.
It’s the second time Movement has settled such charges. Following a 2012 examination, the company refunded nearly $7,300 to 65 borrowers.
As part of the latest settlement, Movement has agreed to refund more than $141,000 to impacted borrowers.
In addition,
Movement is accused of servicing loans without a state license.
The settlement calls for Movement to pay $1 million in penalties for past violations and $125 for each additional violation uncovered by independent auditing of loan originations required by the settlement.
Movement agreed to implement revised
and procedures to prevent future violations of California law.
