State banking regulators revoked the license of a Mississippi mortgage lender accused of destroying and concealing records to cover up fraudulent HUD-1 statements and sales contracts.
Mid-South Mortgage & Investments Inc. consented to the Department of Banking and Consumer Finance’s order for suspension of its mortgage company’s license for three years and a civil money penalty of $10,000 for allegedly violating Mississippi Consumer Protection Law.
Mid-South, which does business as Freedom Lending of Meridian, executed two “different and conflicting HUD Settlement Statements and Sales Contracts on at least six … mortgage loan transactions,” according to the June 20 consent order.
Additionally, the consent order said the lender “directed the destruction and concealment of certain records and files to cover-up the fraudulent and improper actions involving the multiple HUD Settlement Statements and Sales Contracts.”
David Hand, owner of Mid-South in Meridian, told MortgageDaily.com that, with the consent order, “we’re not admitting any wrongdoing.”
Hand’s attorney William Ready did not return a call for further comment.
In an April order, the department fined Mid-South $350 for collecting up-front fees, which amounted to $1,100, and was required to make borrower refunds, according to the consent order.
