CUOMO ADMINISTRATION ANNOUNCES PROSPECT MORTGAGE WILL PAY $3 MILLION PENALTY AND PROVIDE REFUNDS TO HOMEOWNERS HARMED BY INTEREST RATE RIPOFF

New York, NY – October 24, 2013 – (RealEstateRama) — Governor Andrew M. Cuomo announced today that Prospect Mortgage, LLC has agreed to pay a $3 million penalty and deliver restitution to homeowners after a Department of Financial Services (DFS) examination uncovered that the company engaged in deceptive practices on interest rates that harmed consumers. The DFS examination revealed that Prospect charged homeowners upfront ‘discount fees’ in exchange for lower interest rates over the life of their mortgages, but then never actually delivered the promised interest rate discounts. In addition to the $3 million penalty, Prospect Mortgage agreed to provide refunds totaling $427,155 to the 270 New York homeowners who