Kansas state banking officials recently ordered the revocation of a Missouri-based mortgage company’s license and a $235,000 fine for alleged fraudulent loan activity.
The Kansas Office of the State Bank Commissioner recently issued such order to Reis Enterprises Inc. and its president Justin Cahow.
The summary order states that Reis “altered” at least 19 appraisals that were submitted to lenders.
Since November 2002, the Kansas City, Mo.-based company has originated loans through at least six employees who were not registered with the state as loan originators, the office said.
Additionally, Reis has failed to disclose the yield spread premium received by the broker and has received compensation for mortgage loans without first acquiring a signed acknowledgement by the consumer, according to the order.
Reis allegedly also failed to keep and maintain required documents relevant to the mortgage business.
The order calls for Reis to cease and desist engaging in mortgage business and bars the company from renewing its license.
Calls to Reis and the company’s attorney, Matthew T. Geiger, were not returned.
