Lender’s practices called injurious

The California Department of Corporations, citing business practices unsafe and injurious to consumers, has ordered Olympia Mortgage Corp. to immediately establish separate trust accounts for California borrowers.

The department said it took the action because Olympia violated the California Residential Mortgage Lending Act.

It ordered the mortgage company to cease practices injurious to consumers.

The state agency said it was notified by the New York Banking Department that it had suspended Olympia’s mortgage banker license for 30 days, effective Oct. 28. The New York agency said Olympia diverted mortgage payments and proceeds on at least 270 loans totaling $35 million. Olympia’s main office is located in Brooklyn, N.Y., with branches in California in San Diego, Glendale and San Jose.