Veterans United Home Loans to pay $1.1M amid allegations
COLUMBIA (AP) — Veterans United Home Loans who has seen significant growth as a provider of mortgage services will pay more than $1.1 million to settle allegations it improperly withheld refunds from New York customers.
The Columbia Daily Tribune reports Veterans United agreed to pay more than $600,000 in restitution to consumers and a $500,000 civil penalty under a consent agreement signed Aug. 9 with the New York Department of Financial Services.
The department found that if closing costs on loans are less than estimated in the loan agreement, lenders must refund the excess through a reduction in the interest rate, cash refund or other form. The department found in more than 300 cases that Veterans United didn't make the required refund.
Veterans United spokeswoman Lauren Karr said Monday the company identified and corrected the issue several years ago.