Foxtons’ American business is facing legal action from regulators, which could lead to it paying millions of dollars in damages and costs.
The New Jersey Department of Banking and Insurance (NJDBI) is investigating Foxtons’ North American mortgage brokerage, Foxtons Financial Inc, which allegly failed to disclose mortgage application fees to borrowers.
Foxtons says that if it loses the case, there “will be a cost of $2.8m (£1.6m) in addition to the suspension or revocation of the mortgage broker licence”.
References: Mail on Sunday 02/04/2006 p3