Laredo Bank Okays OCC Pact

The Laredo (Texas) National Bank has agreed to pay $14 million to borrowers that were "harmed" by its mortgage subsidiary under a formal agreement with the Office of the Comptroller of the Currency.Under the agreement, the national bank's subsidiary, Homeowners Loan Corp., will "reimburse borrowers who were harmed by practices that occurred due to the lack of appropriate controls," the OCC said. It is believed that HLC engaged in what were deemed deceptive and unfair practices, but OCC officials declined to disclose the specifics of any alleged violations and Laredo National Bank officials could not be reached for comment. Banco Bilbao Vizcaya Argentaria, based in Madrid, Spain, acquired LNB earlier this year. "The bank's new owners shared the OCC's concerns, and the directors of the bank and HLC voluntarily entered into the agreement," the national bank regulator said. ".... The total amount of reimbursement paid out will depend upon the number of borrowers found to have been harmed pursuant to a process set out in the agreement, and will be subject to final review by the OCC."