Regulatory Alerts2019-10-18
Added · Updated
Settlement Agreement and Consent Order Regarding Seterus, Inc.
Seterus, Inc. and its parent Kyanite Services, Inc. must pay a $350,000 civil penalty to state regulators in Connecticut, Florida, Georgia, Massachusetts, Rhode Island, Washington, and West Virginia for violations of the Real Estate Settlement Procedures Act and state licensing laws. The order requires Seterus to cease and desist from specific non-compliant practices, including failing to timely respond to qualified written requests, improper loss mitigation handling, and collecting excessive late fees. Seterus must submit a detailed restitution report and affidavit confirming full remediation for over 50,000 borrowers within 60 days of the order's effective date. The consent order resolves enforcement actions without admitting liability, provided Seterus complies with all terms and discloses the order on the NMLS registry.