Hawaii Part of Multi-State Agreement to Stop Unsupported Mortgage Fees

HONOLULU – December 03, 2015 – (RealEstateRama) — The state Department of Commerce and Consumer Affairs’ (DCCA) Division of Financial Institutions (DFI) participated in an agreement in late November with all 50 state mortgage regulators and Prospect Mortgage, LLC to send a message on the practice of charging unsupported and improperly disclosed fees to borrowers.

The unsupported fees were identified during an examination by the Multi-State Mortgage Committee (MMC), part of the Conference of State Bank Supervisors. Prospect collected a fee from borrowers for Prospect’s subsidiary C2C Appraisal Services and failed to properly disclose that C2C was an affiliated business and failed to account for the full C2C Settlement Service Fee. In addition, some of the settlement services charged by C2C were performed by Prospect employees.

More…