CalCon Mutual Mortgage Corp. v. State ex rel. Wyoming Department of Audit, Division of Banking, 2014 WY 36

Summary

The Wyoming Supreme Court affirmed an administrative order requiring CalCon Mutual Mortgage Corporation to reimburse borrowers for application fees and yield spread premiums that exceeded amounts previously disclosed. The court held that Wyoming law required a mortgage broker charging increased fees to provide a new good-faith estimate accompanied by a clear written explanation of the increase and the reason for charging the higher fees. The court also rejected CalCon's argument that the agency's decision was arbitrary and capricious.

Holdings

1. A mortgage broker may receive a fee exceeding the fee disclosed in the most recent good-faith estimate only if the statutory conditions are satisfied, including providing a new good-faith estimate at least three business days before closing together with a clear written explanation of the fee increase and the reason for charging a fee exceeding the amount previously disclosed.
2. An agency may enforce a clear statutory direction according to its plain meaning without first promulgating a rule defining the statutory phrase.

Questions Presented

1. Whether Wyo. Stat. Ann. § 40-28-114(d) requires a mortgage broker charging a fee exceeding the fee in the previously provided good-faith estimate to provide both a new good-faith estimate and a clear written explanation of the increase and the reason for charging the higher fee.
2. Whether the Banking Commissioner's decision was arbitrary and capricious or unsupported because the Division had not promulgated a rule defining the phrase 'most recent good faith estimate.'

Disposition

affirmed