Sterling in Mich. pays fine tied to defunct mortgage program

Sterling Bancorp in Southfield, Mich., will pay a $6 million civil money penalty as part of a formal agreement with the Office of the Comptroller of the Currency.

The OCC said in a press release it had freed the $2.5 billion-asset company’s bank from the June 2019 formal agreement after determining it had “implemented all corrective actions required … and is in compliance will all articles of the enforcement action.” 

The agency said the penalty, to be paid to the Treasury Department, is based on violations of law and “unsafe or unsound practices” tied to the company’s defunct Advantage Loan Program. 

The OCC had claimed that the bank originated numerous loans that were based on false or fraudulent loan information. The agency said it also found underwriting deficiencies and Bank Secrecy Act and anti-money laundering violations tied to the program. 

The OCC said it continues to review the conduct of institution-affiliated parties who were associated with the loan program.