A firm that has recently claimed to be among the biggest home-purchase lenders for veteran programs has agreed to pay over $1 million to settle alleged violations of the Real Estate Settlement and Procedures Act.
On its website,
Columbia, Missouri-based Veterans United Home Loans reports that overall residential loan originations came to $10.3 billion during all of last year.
The 2,000-employee organization claims that it was the No. 1 originator of purchase-money mortgages guaranteed by the Department of Veterans Affairs during 2015.
Some of those customers — 322 between January 2011 and June 2014 — were not refunded surplus lender credits, a statement Thursday from the New York
Department of Financial Services. The actions were uncovered by a state examination.
Mortgage Research Center LLC, which does business as VAMortgage Center and Veterans United Home Loans, failed to make the refunds to borrowers who obtained a credit to cover estimated closing costs by paying a higher interest rate, according to the state.
“Veterans United did not adjust down the interest rate, reduce the principal balance of the loan, reduce the down payment, provide a cash refund, or pursue any other means of refunding the surplus to the borrower,” the statement said.
The alleged actions violated RESPA’s Regulation X, and therefore New York banking law.
The company has agreed to a consent order that requires it to cease and desist, make around $604,000 in restitution to New York borrowers and pay a $500,000 fine to the DFS.
