1,637 Nevada borrowers to receive reimbursement of fees paid to Prospect Mortgage


Contact

Teri Williams
Public Information Officer
(702) 486-0407
Las Vegas, NV - November 23, 2015

The 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.

 

The 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 employees.

 

The 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. 

 

In 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 retention.

 

A copy of the Settlement Agreement and Consent Order is available here.

 

About the Multi-State Mortgage Committee

The 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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