Fairbanks OKs Florida Settlement

Subprime servicer Fairbanks Capital Corp. has agreed to refund Florida homeowners $1.65 million for allegedly charging improper fees, according to state officials.The settlement agreement is the result of an extensive review of Fairbanks' records by state examiners. The $1.65 million does not come out of the $40 million pot that Fairbanks created as part of a settlement with the Federal Trade Commission last November. "It goes above and beyond" the Fairbanks/FTC settlement, said Bob Tedcastle of Florida's Office of Financial Regulation. Florida regulators alleged that the Salt Lake City servicing company charged unwarranted fees for appraisals and improper fees for releasing borrowers from mortgages that were paid off. They also alleged that Fairbanks improperly charged interest to cover advances the company paid for force-placed insurance, appraisals, and credit reports. A Fairbanks spokeswoman said the possibility of such settlements was disclosed last year.