New York Department of Financial Services Settles with Mortgage Company

On February 10, 2021, the New York Department of Financial Service (DFS) entered into a settlement with a New York-based mortgage company to resolve allegations that the company utilized an unauthorized domain name and website, and failed to provide mortgage loan applicants with pre-application disclosures in violation of Article 12-D of the New York Banking Law (Banking Law) and Part 38 of the General Regulations of the Superintendent (General Regulations).

​According to the DFS, the business failed​ to obtain prior authorization from it to utilize domain and website names to conduct New York regulated mortgage loan business and residential mortgage activities. The DFS further alleged that a 2015 examination revealed that the business failed to provide mortgage loan applicants with certain pre-application disclosures.  Specifically, DFS asserts that the company failed to disclose certain fees to at least ten borrowers, and failed to disclose the effect of discount points on loans to at least two borrowers.

​The settlement provides that the company will take necessary steps to ensure compliance with all applicable laws and regulations.  The company will also pay $10,000 as a penalty to the DFS.