Mortgage lender W.R. Starkey to refund consumers $4.7 million

Mortgage lender W.R. Starkey to refund consumers $4.7 million
Mortgage lender W.R. Starkey to refund consumers $4.7 million

Mortgage Lender W.R. Starkey Mortgage must pay $4.7 million in refunds for signing up consumers for home loans they couldn't afford, under a settlement with the North Carolina Attorney General and North Carolina Commissioner of Banks.

As part of the agreement with the Commissioner of Banks, the chairman and CEO of Starkey has resigned and its president has been removed.

Between January 2007 and September 2008, the Plano, Texas-based company provided loans to North Carolina consumers who bought modular and manufactured homes from Phoenix Housing Group.

In its case, the state alleged that W.R. Starkey collaborated with Phoenix to improperly qualify borrowers for loans on homes and land being sold at inflated prices. To expedite the loan process, Starkey would pay a Phoenix employee to do the work that Starkey was legally required to perform.