Las Vegas, NV - November 23, 2015
Nevada Division of Mortgage Lending has announced that it has joined a
Settlement Agreement and Consent Order negotiated by the Multi-State Mortgage
Committee on behalf of 50 state mortgage regulators and Prospect Mortgage, LLC.
action comes after a multi-state examination revealed a pattern of charging
improperly disclosed and unsupported fees paid to the company’s affiliate, C2C
Appraisal Services, LLC. Prospect failed to properly disclose to borrowers that
C2C was an affiliated business and did not provide reliable documentation to
account for an assessed Settlement Service Fee. Furthermore, in many instances,
the settlement services charged by C2C were in fact performed by Prospect
Settlement Agreement and Consent Order requires Prospect Mortgage to make
consumer restitution of $40 plus 10% interest per annum to each of the 70,982
borrowers affected borrowers. In Nevada, 1,637 borrowers will receive
this reimbursement within 90 calendar days of the order’s effective date of
November 19. The company will also pay an administrative penalty of $163,700 to
the State of Nevada, Division of Mortgage Lending.
addition, Prospect is required to revise and submit to the MMC for review its
Policy and Procedure Manuals addressing areas of mortgage operations, fees,
disclosures, requirements for charging consumer credit cards and record
copy of the Settlement Agreement and Consent Order is available here.
About the Multi-State
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.
About the Mortgage Lending Division
The Division is authorized to enforce the statutes and regulations
pertaining to Mortgage Bankers, Mortgage Brokers, Mortgage Agents, Escrow
Agencies, Escrow Agents and Loan Modification Consultants, Foreclosure
Consultants and other persons who provide similar services. The mission
of the Division of Mortgage Lending (MLD) is to promote professionalism,
education and ethics in the mortgage lending, escrow, loan modification and
foreclosure consultant industries through fair regulation and coordination with
industry and consumer groups in addition to providing consumers with a fair and
balanced complaint resolution process.
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