CA DBO Settles with Mortgage Servicer Over Alleged Failure to Pay Escrow Interest

On June 18, 2019, the California Department of Business Oversight (DBO) announced that it entered into a ​settlement and consent order with a mortgage servicer over an alleged failure to pay interest on ​escrow impound accounts for 94,483​ residential mortgage loans.​  Servicers are required to pay interest on such accounts under the California Residential Mortgage Lending Act. The settlement and consent order stem from a regulatory examination initiated by the DBO in 2017. ​ The servicer agreed to pay 2% interest to borrowers on escrow impound amounts for the period of July 1, 2014 through December 31, 2018, totaling some ​$7.8 million, and to pay interest on such loans in the future.​

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