Real Estate

Hawai‘i Part of Accord to Stop Unsupported Mortgage Fees

December 7, 2015, 10:00 AM HST
* Updated December 4, 10:37 AM
Listen to this Article
1 minute
Loading Audio... Article will play after ad...
Playing in :00

How to manage a ballooning federal debt is a key election issue in 2012.

Stock image.

The unsupported fees were identified during an examination by the Multi-State Mortgage Committee, part of the Conference of State Bank Supervisors. Prospect collected a fee from borrowers for Prospect’s subsidiary C2C Appraisal Services, 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.

As part of the agreement, Prospect will pay restitution to affected borrowers;
revise its policies and procedures regarding mortgage operations, fees, disclosures, requirements for charging consumer credit cards and record retention to meet MMC standards; and pay administrative penalties to mortgage regulators in the affected states.

Hawai‘i’s share of the administrative penalty is $47,000.

“This settlement agreement sends a strong message against charging unfair fees to borrowers,” said Iris Ikeda, the commissioner of Financial Institutions. “In many cases, improperly disclosed and unexpected fees can cause financial distress to borrowers and would-be homeowners. We are pleased with the results of the settlement agreement and Prospect’s willingness to revise their policies.”

DFI ensures the safety and soundness of state-chartered and state-licensed financial institutions, and ensures regulatory compliance by state-licensed financial institutions, escrow depositories, money transmitters, mortgage servicers, mortgage loan originators, and mortgage loan originator companies, by fairly administering applicable statutes and rules in order to protect the rights and funds of depositors, borrowers, consumers and other members of the public.

Make the most of your Maui vacation with these top-rated activities: Maui Top 20: Maui Visitor & Tourism Information
E-Mail Newsletters Receive daily or weekly updates via e-mail. Subscribe Now
News Alerts Breaking news alerts on your mobile device. Get the App


This comments section is a public community forum for the purpose of free expression. Although Maui Now encourages respectful communication only, some content may be considered offensive. Please view at your own discretion. View Comments