PMI Unit Agrees to Pay $40-Million Settlement
From Bloomberg News
Fairbanks Capital Holding Corp., a loan-servicing unit of Walnut Creek, Calif.-based PMI Group Inc., agreed to pay $40 million to settle U.S. claims that it overcharged borrowers with poor credit.
The settlement concluded a seven-month investigation of Salt Lake City-based Fairbanks Capital by the Federal Trade Commission and the Department of Housing and Urban Development. The company was accused of billing borrowers hundreds of dollars in phony fees and threatening them with possible foreclosure of their loans and loss of their homes.
Former Fairbanks Capital Chief Executive Thomas Basmajian will pay a $400,000 penalty in addition to the $40-million fund for the borrowers, the FTC said.
From Bloomberg News
