On October 30, the California DFPI entered into a consent order with a mortgage lender and servicer after a regulatory examination into the company surfaced multiple alleged violations of the California Residential Mortgage Lending Act (CRMLA). The examination revealed that, in two out of nine loans reviewed, the company purportedly charged borrowers per diem interest for more than one day prior to loan proceeds being disbursed from escrow in violation of the CRMLA. Following a DFPI-directed self-audit, the company identified 10 out of 74 additional loan files with per diem overcharges and refunded affected borrowers the overcharged amounts plus 10 percent interest per annum.

The examination identified additional alleged CRMLA violations, including failure to maintain business records for the required 36-month period and failure to keep documents and records as required by law. Under the consent order, the company agreed to correct these violations immediately, affirmed that it had made $1,554.93 in refunds for per diem interest overcharges, and agreed to a $100,000 penalty to be paid in monthly installments through October 1, 2026.