twitter linkedin
facebook google+
Search:

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.

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

Mortgage News

 

Mortgage News

HOT Topics

production

servicing

compliance

legal

fraud

secondary

jobs

appraisal

site map

www.loan-academy.com/
The Mortgage Graveyard
Failed, closed and a c q u i r e d mortgage-related entities.



Servicer Seized

Michigan regulator seizes Northwestern Financial Corp.

June 9, 2009

By MortgageDaily.com staff


Michigan regulators seized a mortgage servicer accused of pocketing investors' payments and siphoning off escrow funds.

The state's Office of Financial and Insurance Regulation placed Northwestern Financial Corp. into conservatorship on Friday, a news release today said. James Gerber, director of receiverships for the regulator, was named conservator.

The Order Appointing Conservator directed that the company cease and desist from doing business.

Northwestern serviced 156 mortgages in the state as of Dec. 31, 2008. The order enables the conservator to operate the firm and stabilize its servicing operations.

"The commissioner's actions were prompted by the agency's discovery that Northwestern was improperly servicing its mortgages," Michigan said.

Investors began complaining to the commissioner that they were not receiving payments based on the agreements that they had with Northwestern. A state investigation found inadequate file records and no documentation to back up alleged payments to contractors. It also uncovered personal use of repair escrow account funds.

The Wixom, Mich.-based company was owned by its president, John P. Collins Jr., and Gregory Anusbigian, according to the order. Northwestern was operated from Collins' home and was licensed under the Mortgage Brokers, Lenders and Servicers Licensing Act, 1987 P.A. 173, since 1996. It was also licensed under the Secondary Mortgage Loan Act, 1981, P.A. 125.

Turns out that Collins was the borrower on multiple loans serviced by Northwestern. He admitted he couldn't make the payments, in turn leaving investors holding the bag. Some of his payments that were made came from the escrow account.

In all, the escrow account was short more than $230,000.

"Respondent lacks the necessary funds to continue to service the mortgage loan contracts," the order said. "Staff has determined, based on the investigation, that respondents pose an imminent threat of harm to consumers and investors."

Northwestern is the 77th mortgage-related closing tracked by MortgageDaily.com during 2009.
Corporate Mortgage News
M e r g e r s, a c q u i s i t i o n s and private and public offerings. Other corporate activity including executive appointments, bankruptcies name changes.


Servicing News | Servicer Ranking | Delinquency Statistics
Stories about mortgage servicers, delinquency and f o r e c l o s u r e s. Coverage of servicing lawsuits and loan servicing technology.



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

MBS

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