New York regulator probing Caliber Home Loans

by Ryan Smith28 Sep 2016
New York’s financial regulator is looking into the handling of distressed mortgages by one of the nation’s fastest-growing mortgage firms, the New York Times reported.

The New York Department of Financial Services has asked Caliber Home Loans for information on its handling of distressed mortgages and origination of mortgages to borrowers with lower credit scores, according to the Times.

Citing a source familiar with the matter, the Times said that the Department of Financial Services was investigating “multiple complaints” from New York consumers. Caliber is also being investigated by New York Attorney General Eric Schneiderman, the Times reported.

Caliber, a wholly owned subsidiary of Lone Star Funds, was founded just four years ago and is now the 10th-largest mortgage servicer in the nation, according to the Times. However, its rapid growth has worried some observers; last year, Fitch issued a negative outlook on Caliber, at least in part because of its super-speed expansion.
 

COMMENTS

  • by Say no to NY | 9/28/2016 11:32:05 AM

    When will people wake up and not do business in New York? Then see what their consumers do with limited choice and competition.

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