A mortgage company will pay back Nevada homeowners for fees that it incorrectly charged.
Prospect Mortgage will make consumer restitution of $40 plus 10 percent interest per year to 1,637 borrowers who did business with the company.
Prospect will also pay an administrative penalty of $163,700 to the state of Nevada’s Division of Mortgage Lending.
The company must also revise and resubmit to the lending division its policy and procedure manuals on mortgage operations, fees, disclosures, requirements for charging borrowers’ credit cards and records retention.
State mortgage regulators accused Prospect Mortgage of charging “improperly disclosed and unsupported fees” through its affiliate, C2C Appraisal Services. Regulators said Prospect didn’t properly disclose to borrowers that C2C was a related business. Nor did it provide documents to explain a “settlement service fee” it charged to consumers. In many cases, the C2C fees were actually charged by Prospect employees.
The lending division announced the agreement on Monday. The deal was part of a settlement agreement spanning 50 states and 70,982 borrowers nationwide.
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