On January 23, 2015, the California Department of Business Oversight (“CBO”) announced that it reached a settlement with a national mortgage lender over allegations that the lender failed to comply with state recordkeeping requirements to assess compliance with state mortgage lending laws. The CBO claims that the mortgage lender repeatedly failed to respond to requests to produce information and documents for borrower loan files as part of its routine examination of the mortgage lender. The CBO initiated an action to suspend the mortgage lender’s license to lend in the state as a result of its failure to respond to the CBO’s requests. As a result of the settlement, the lender agreed to submit to a third-party audit of its loan files and refrain from taking on new customers until the audit determined the lender could timely comply with agency requests for information. The lender also agreed to pay an administrative penalty of $2.5 million.