Three firms recently faced actions by two states over unlicensed origination activity — with one of the companies being required to fork out nearly $600,000.
A June 29 settlement with the Massachusetts Commissioner of Banks Mortgage Lender and Mortgage Broker Licensing will cost Mortgage Master Inc. $585,000, the state announced.
As part of the agreement, the company has established procedures to ensure it avoids similar violations again. It also agreed to obtain necessary state approvals before originating reverse mortgages, though not before 12 months have elapsed from the settlement date.
The Walpole, Mass.-based lender allegedly allowed unlicensed loan officers to originate. It also made reverse mortgages without state approval for the program.
But the commissioner noted that the company cooperated with its examination and even attended a conference with the division. Mortgage Master agreed to the settlement “to avoid unnecessary time and expense for all concerned.”
In Indiana, two out-of-state mortgage brokers are accused of originating in the state without a license in violation of the Indiana Loan Broker Act, a news release from Indiana Secretary of State Todd Rokita indicated. Cease-and-desist orders were issued against both firms by the Indiana Securities Commissioner on June 18.
The first company, Home Ownership Possibilities for Everyone LLC, was last known to operate from Louisville, Ky.
The other broker, SEEED Consortium LLC, operates from Las Vegas, though it also does business in Kentucky. SEEED was also ordered to stop collecting fees that are not bona fide third-party fees.
Both companies allegedly attempted to procure residential loans from a third party on behalf of at least one prospective Indiana borrower. Both face penalties of up to $10,000 per violation.
