CA DFPI Hits Mortgage Lender with $100k Per Diem Interest Consent Order

On November 4, 2025, the California Department of Financial Protection and Innovation (DFPI) issued a Consent Order against a Residential Mortgage Lending Act Licensee (Licensee) for, among other things, allegedly overcharging per diem interest on 10  mortgage loans.  The alleged overcharges were discovered during a routine examination and subsequent self-audit.  In the Consent Order, DFPI affirmed that refunds to the borrowers had been made, and also ordered the Licensee to pay a $100,000 penalty.

This is the second time in 2025 that DFPI has issued a Consent Order against a Licensee for charging per diem interest for more than one day prior to disbursement of the loan proceeds from escrow.  The previous Consent Order, issued in May 2025, also carried a $100,000 penalty.  Additionally, in August 2025 (as previously covered by WBK), DFPI entered into a $1.8mm settlement agreement in litigation against a former mortgage lender and servicer for alleged violations that included per diem interest overcharges.