The Federal Trade Commission said Thursday that it had penalized seven subprime mortgage lenders for abusive lending practices.
Cited as part of the commission's "Operation Home Inequity" campaign were: Barry Cooper Properties of Encino, Calif.; CLS Financial Services Inc. of Lynnwood, Wash.; Granite Mortgage LLC of Lexington, Ky.; Interstate Resource Corp. of Newburgh, N.Y.; LAP Financial Services Inc. of Louisville, Ky.; and Wasatch Credit Corp. of Salt Lake City. The firms were ordered to repay borrowers amounts ranging from $25,000 to $250,000.
Additionally, Capitol Mortgage Corp. of Provo, Utah, was banned from any involvement with high-cost loans secured by consumers' homes. Wasatch Credit and Barry Cooper would have to obtain performance bonds in order to make certain types of home equity loans.
The FTC said the lenders agreed to the penalties to settle charges that they violated agency rules.