home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map

twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

Mortgage License News | State Agencies | NMLS Registration Statistics
Mortgage lending licenses and news about license issues by state. Mortgage broker licensing, license revocations and legislation.


Mismanagement Kills Mortgage Firm

AZ regulators pull Eagle First license

February 27, 2007


photo of Coco Salazar

Arizona regulators are shutting down a mortgage company with over 80 branches because of extremely lax hiring practices, poor record keeping and incompetent management.

Eagle First Mortgage consented to the Arizona Department of Financial Institutions' order to surrender its mortgage broker license and that of all of its branches, which -- according to the state -- number around 82.

The department's investigation of Eagle around mid-2006 found that the company was insolvent, failed to adequately reconcile their checking accounts and provide documentation to support financial status of such accounts, and engaged in over 80 illegal acts, including some relating to Truth-in-Lending laws, according to the order.

The brokerage will officially be closed on March 14, according to a statement posted on Eagle's Web site by its chief executive officer, David Sanchez.

"As most people know I have agreed to shut down Eagle," Sanchez said in the statement. "The Department of Financial Institutions was gracious in allowing loans not yet closed to continue closing so as to not hurt the borrowers."

Sanchez provided a written statement to the department, citing that Eagle has not accepted new business since the mandated date of Jan. 31, 2007.

The order cited over 80 instances of illegal practices by Eagle.

Among the law violations, Eagle did not conduct, or failed to record the date of, minimal reasonable background checks before hiring employees. In some cases, it did not consult with applicants' most recent employer, did not inquire applicants about their qualifications and competence, and failed to obtain signed statement attesting all felony convictions on at least 95 employees. Eagle also hired some without first obtaining a completed and signed application, and, with 62 employees, did not further investigate their derogatory credit reports, according to the order.

Eagle failed to ensure that certain responsible individuals maintained a position of active management and were knowledgeable of Arizona activities, did not maintain records of all executed loan applications, and excluded their name and license number within text of advertising or business solicitations, the department added.

Additionally, Eagle continued to engage in illegal practices after agreeing to take corrective action and paying a civil penalty that the department issued against it in early 2004. After paying the penalty, Eagle paid almost $2.5 million in compensation to unlicensed, independent contractors, including companies owned by branch managers. Some of the compensation did not have payroll taxes withheld or go through payroll services.

The brokerage illegally transferred or assigned branch office licenses, the department continued, citing that Eagle originated loans for branches whose license was pending. On a loan application, Eagle listed its corporate address and said the information from a borrower was taken "face to face" when the borrower actually lived a significant distance away.

On some loan transactions, Eagle did not disclose yield spread premiums or real estate broker fees it collected while acting as a mortgage broker, and it failed to issue preliminary Good Faith Estimates and Truth-in-Lending disclosures, the state said.

The department also said Eagle gave borrowers -- who had already paid for an appraisal report -- a 90-day limit to request, transfer or return an appraisal report. The order also cited instances in which the same borrowers who had received a loan applied for a second loan within less than a month to two months and their income differed significantly or the place listed as the primary residence in both loans was different. Eagle also had borrowers sign applications with blank spaces without first obtaining their written authorization to complete the blank spaces.

Coco Salazar is an assistant editor and staff writer for MortgageDaily.com.

e-mail: [email protected]

Mortgage Broker News | Originator Newsletter
Stories about mortgage brokering and broker programs. Profiles of successful mortgage brokers. Articles about mortgage brokers who excel at other activities. Broker lawsuits and criminal broker activity.

Mortgage Branch News | Net Branch | Mortgage Branch Directory
Coverage of new and existing net branch operations. Programs, payouts and other details. Profiles of brokers and net branch lawsuits.

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders