On June 18, 2019, the California Department of Business Oversight (DBO) announced that it entered into a settlement and consent order with a mortgage servicer over an alleged failure to pay interest on escrow impound accounts for 94,483 residential mortgage loans. Servicers are required to pay interest on such accounts under the California Residential Mortgage Lending Act. The settlement and consent order stem from a regulatory examination initiated by the DBO in 2017. The servicer agreed to pay 2% interest to borrowers on escrow impound amounts for the period of July 1, 2014 through December 31, 2018, totaling some $7.8 million, and to pay interest on such loans in the future.
Blog Enforcement Watch June 19, 2019