SACRAMENTO, Calif.—The California Department of Financial Protection and Innovation has reached a $2.3 million settlement with former mortgage lender and servicer Caliber Home Loans, Inc., following findings that the company overcharged thousands of California borrowers, in violation of state financial regulations.
As part of a settlement, Caliber, headquartered in Coppell, Texas, will pay $1.8 million in penalties and has refunded more than $550,000 to impacted California consumers. In addition, the company will surrender its California Financing Law license and its California Residential Mortgage Lender and Servicer license, the DFPI said.
“This penalty holds Caliber accountable and returns interest to California borrowers. It is an example of DFPI’s strong regulatory oversight in California’s mortgage industry and its commitment to protect California consumers,” said DFPI Commissioner KC Mohseni.
A DFPI regulatory examination and subsequent investigation found that Caliber improperly charged excess per diem interest on 4,912 loans between 2012 and 2019, in violation of California Financial Code section 50204(o) and Civil Code section 2948.5. The company also failed to maintain required trust accounting practices under state regulations, the Department said.