Pennsylvania regulators hit SoFi with enforcement action
A subsidiary of Social Finance Inc. has agreed to pay a $110,000 fine in Pennsylvania after operating as a mortgage servicer for nearly a year without the required state licensing.
SoFi Lending Corp. is one of several mortgage companies that has been hit recently with enforcement actions in Pennsylvania after a change in state law in December 2017.
The new law required mortgage servicers that were operating in Pennsylvania to be licensed. Companies had until June 30, 2018, to apply without being penalized for unlicensed activity.
SoFi applied for a license in June 2019, according to a consent agreement that was signed in September and publicized for the first time on Monday.
The agreement states that SoFi had believed it was properly licensed to service loans that it originated in Pennsylvania using a licensed subservicer, because it held master servicing rights for those loans as a state-licensed mortgage lender.
A SoFi spokeswoman said in an email Monday: “Although we believed we were properly licensed and that the fine amount is out of proportion to the underlying activity, we have opted to accept a consent order with the Pennsylvania Department of Banking and Securities. We are pleased to have this matter resolved quickly.”
SoFi, a richly valued fintech that focuses heavily on high-earning young adults, is licensed to originate mortgages in more than 40 states, including Pennsylvania. The San Francisco firm advertises loans of up to $3 million that require down payments as low as 10%.
Other companies that have recently signed consent agreements with Pennsylvania regulators in connection with the 2017 state law include E Mortgage Management, Panorama Mortgage Group, Weststar Mortgage Corp. and American Neighborhood Mortgage Acceptance Co.