California Department of Financial Protection and Innovation Fines Caliber Home Loans for Overcharging Borrowers in Wake of TransUnion Data Breach

Caliber Home Loans, one of the largest mortgage lenders in the United States, has been hit with a fine by the California Department of Financial Protection and Innovation (DFPI). The fine comes after the DFPI found that Caliber had overcharged borrowers in 2016, following a data breach at credit reporting agency TransUnion.

The DFPI discovered that Caliber had been overcharging borrowers per diem interest, resulting in increased costs for California borrowers. This overcharging was found to be in violation of the state's per diem interest law, which prohibits lenders from charging more than one day's interest before the loan is funded.

In addition to the fine, Caliber has been ordered to reimburse affected borrowers and undergo a review of its mortgage practices. According to DFPI Commissioner Manuel P. Alvarez, “This case is a reminder to lenders that they must comply with California law and accurately calculate per diem interest.”

Caliber has stated that they are currently reviewing the DFPI's findings and will take appropriate action to address the issue.

As for the TransUnion data breach, which occurred in 2016, the credit reporting agency has already reached a settlement with the DFPI and affected consumers, paying out $3 million in restitution and penalties.

This latest incident highlights the need for strict regulations and oversight in the mortgage industry, as well as the importance of protecting consumers' personal information.

Accurate, fact-checked rewrite of the article.