Irvine lender agrees to fines for pre-screened offers

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A California mortgage lender agreed Tuesday to pay $20,000 in civil fines for sending pre-screened credit offers to homeowners without telling them that they could opt out of receiving similar offers in the future.

Metropolitan Home Mortgage Inc., which was sending out the credit offers under the name Wholesale Home Lenders, settled with the Federal Trade Commission on charges that it violated federal law.

The Irvine-based company also agreed to share its record-keeping and reporting on its pre-screened credit offers with the FTC so the agency can monitor the company’s compliance with federal law, the commission said in a statement.

Metropolitan Home Mortgage didn’t respond to requests for comment.

Federal law permits lenders or insurers to make pre-screened credit or insurance offers only if they clearly state that the person’s credit report was used to make the offer and that they can opt out of getting such offers, the commission said.

-- Nathan Olivarez-Giles