| Georgia Issues Cease & Desist to Ameriquest Wholesale Sub
Georgia, Massachusetts go after lenders September 8, 2005 By PATRICK CROWLEY |
| Regulators in two states have come down on three mortgage companies — including an Ameriquest Mortgage subsidiary — with orders to halt or change the way they are doing business in Georgia and Massachusetts.In Georgia, the state’s Department of Banking and Finance has revoked the mortgage broker’s license of First Capital Mortgage Associates and issued a cease and desist order to Argent Mortgage Co., LLC, a unit of giant subprime lender Ameriquest.
And in Massachusetts the Division of Banks has temporarily barred Matrix Investment Corp. from conducting any mortgage business in the state. The order follows similar actions filed by regulators in two other east coast states. The most serious action was against First Mortgage of Smyrna, Ga., which had its license revoked by Georgia regulators. In a statement the Georgia Department of Banking and Finance said the company was cited “for making misrepresentations in loan files submitted to mortgage lenders” and for “its refusal to allow the department to conduct an examination.” “One of the primary missions of the Department is to maintain the integrity of the mortgage lending process through enforcement of the Georgia Residential Mortgage Act,” Senior Deputy Commissioner George Reynolds said in the statement. The state issued a Notice of Intent to Revoke Annual License to First Capital on July 29. First Capital failed to contest, resulting in the revocation of its license, the state said. A message left on the voice mail at First Capital’s office was not returned. Argent also violated the state’s mortgage laws and was ordered to make changes, the state said. According to a statement, the changes include developing and implementing new compliance procedures; ensuring the brokers and lenders it deals with are licensed; reporting to the state any suspected mortgage fraud; and adopting “best practices on fraud and prevention.” Argent is cooperating with the state it said in a statement issued to MortgageDaily.com through The Abernathy MacGregor Group, Argent’s Los Angeles-based public relations firm. “Mortgage fraud is a problem which hurts borrowers and lenders alike,” the company said. “Argent is committed to developing higher standards to promote an environment in which consumers can be both informed of and protected from the evolving risks of mortgage loan fraud.” In Massachusetts Matrix Investment Group allegedly violated state mortgage laws by failing to disburse loan proceeds in a timely manner. The state’s Division of Banking said in a written order that Matrix must temporarily “cease and desist” mortgage lending and brokerage until a hearing can be held later this month. “Matrix Investment Corporation has engaged in…practices which warrant the belief that it is not operating honestly, fairly, soundly and efficiently in the public interest in violation of standards governing the licensing and conduct of a mortgage lender,” state said in its order. Matrix is based in Groton, Conn. It has faced similar allegations in New York and Connecticut. The company could not be reached to comment but has previously denied the charges. |
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Patrick Crowley is a MortgageDaily.com feature journalist and blogger, and a reporter, blogger and columnist for The Cincinnati Enquirer. e-mail Patrick at: PatCrowley@MortgageDaily.com |
