For the second time since late last year, the parent of United Wholesale Mortgage has reached a settlement with government authorities. The latest action was due to interest overcharges.
On Dec. 28, 2016, the Department of Justice announced a $48 million settlement with United Wholesale-parent United Shore Financial Services LLC.
The lender was accused of violating the False Claims Act by pressuring and compensating underwriters to approve loans insured by the Federal Housing Administration.
Now United Shore is in hot water again.
On Monday,
the California Department of Business Oversight reported that it reached a consent order with the company.
According to the state, United Shore allegedly overcharged thousands of Golden State borrowers for per-diem interest. California law prohibits lenders from charging interest on home loans prior to the business day that immediately precedes the disbursement date.
The settlement will cost the firm $1.4 million.
Included in the settlement are $0.3 million in refunds already provided to around 3,400 borrowers and $1.1 million in penalties.
The settlement
resolves an enforcement action that resulted from two regulatory examinations conducted by the department.
Department of Business Oversight Commissioner Jan Lynn Owen noted in the statement that the settlement “compensates borrowers for the financial harm they suffered, and requires the firm to continue following improved policies and procedures designed to prevent this from happening again.”
The statement said that United Shore originated 13,063 loans in California for $4.4 billion during 2015.
