Caliber Home Loans Fined $2M For Pointing Homeowners Towards Risky Mortgage Mods
Massachusetts fined Caliber Home Loans $2 million and ordered them to make a number of mortgage modifications to borrowers in the state, after allegations that the company pointed struggling homeowners into "risky mortgage modifications," according to HousingWire.
"The settlement stems from allegations brought by the office of Massachusetts Attorney General Maura Healey, which accused Caliber of failing to properly help borrowers avoid foreclosure," according to the report.
"Healey’s office alleged that Caliber violated the Massachusetts Act Preventing Unlawful and Unnecessary Foreclosures, a 2012 state law that requires creditors to 'make a good faith effort to avoid foreclosure for borrowers whose mortgage loans have unfair subprime terms.'"
While Caliber is settling the allegations, the company release a statement to HousingWire and stated that it disagreed with some of Healy's claims. The company also intends on altering its business practices to comply with Massachusetts laws.
"Caliber will also be required to put a new loan modification program in place and review Massachusetts borrowers who currently have interest-only or short-term modifications to provide them a 'more sustainable, affordable modification,' Healey’s office added," according to the report.
To learn more about the Caliber Home Loans settlement click on the image above.