Unknown Former Mortgage Lender/Servicer
California
On August 18, 2025, the California DFPI settled with a former mortgage lender and servicer for $1.8 million in penalties plus $550,316 in borrower refunds. The settlement resolved violations including overcharges in per diem interest, escrow account failures, and violations of the California Residential Mortgage Lending Act (CRMLA) and California Financing Law (CFL). The specific name of the lender/servicer was not identified in the source data. While this may not involve a traditional BaaS model, the action is relevant to the broader fintech lending ecosystem, as many digital mortgage lenders and servicers operate under state licensing and may rely on bank partnerships for origination or servicing.
Verified from source: DFPI settled with a former mortgage lender and servicer for $1.8 million in administrative penalties plus $550,316.46 in borrower refunds for overcharging per diem interest, failing to establish custodial accounts, and failing to reconcile escrow liability ledgers, in violation of CRMLA and CFL.
- Fintech mortgage lenders and servicers partnering with banks face state-level enforcement for consumer protection violations
- BaaS banks facilitating mortgage origination should ensure partner compliance with state lending laws
- Consumer refund requirements demonstrate regulators' focus on direct borrower harm remediation