The order stems from multiple investigations concerning loans originated between 2008 and early 2014. The NYDFS alleges that the company had inadequate oversight of its origination practice, “shortcomings in the internal audit function,” “absence of adequate internal controls,” and allegedly violated the Truth in Lending Act. The NYDFS also alleged, among other things, that the company compensated its originators in a way that caused borrowers to be steered toward higher-cost loans.
The consent order the company entered into with NYDFS requires it to pay a $28 million dollar fine to the state, and hire an independent auditor to examine its practices and policies to ensure compliance with state and federal laws. The auditor will submit reports to the state every ninety days documenting compliance, and will also ensure consumers who paid any origination fees that were not compliant with New York law will receive restitution.