On November 19, the California DBO announced a settlement with a residential retail mortgage lender to resolve allegations that, from September 30, 2009 through January 21, 2014, it overcharged consumers for a settlement service fee to cover third-party services, and also failed to disclose that the third-party servicer was an affiliated business and that some of its services were performed by the lender’s employees. Additionally, the DBO alleged that the company did not provide examiners with the necessary documentation to account for the full third-party settlement service fee. To resolve Federal and State compliance violations, the company will pay an estimated $2.8 million of combined restitution to more than 70,000 borrowers across the country, and $7.4 million in administrative penalties to participating states where the company is licensed. The settlement requires the company to revise its policies and procedures and, by December 31, 2015, provide adequate training on those revisions to management, mortgage loan originators, and support staff.