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Unlicensed Broker Keeps On Originating

Unlicensed Broker Keeps On Originating

Karen Funk ordered to stop brokering

April 5, 2006

By PATRICK CROWLEY

For the third time since last month, the Georgia Department of Banking and Finance has banned a mortgage broker from the business.Karen Funk of Snellville has been ordered to “cease and desist from brokering mortgage loans”, according to a statement from the department.

An original cease and desist order against Funk was originally handed down in November of 2003.

But regulators “received evidence that Ms. Funk was still brokering mortgage loans in direction violation of state law,” according to the statement.

If Funk continues to broker loans she could likely face criminal prosecution, Rod Carnes, deputy commissioner for non-depository financial institutions, said in an interview with MortgageDaily.com.

“We were made aware that … she was conducing mortgage business,” Carnes said. “If she violates the cease and desist order she could end up in the court system,” Carnes said.

Carnes said he could not discuss the specifics of Funk’s case because it is ongoing. And she could not be reached to comment.

But Carnes did say that she received the original cease and desist order for violating Georgia’s laws regarding the information that passes between brokers, their customers, lenders and state regulators.

“Normally, this regards some type of misrepresentation,” he said.

Carnes pointed to the provisions of state law that punish brokers for misrepresenting material facts, making false statements or submitting false documents.

The FBI has said Georgia has once of the worst problems with mortgage fraud in the nation. Last year legislators passed a new law with tougher regulations and harsher penalties for violators.

A crackdown by state officials has been noticeable.

Last month Carnes’ department issued a cease and desist order against Sonya Brown, who was accused of continuing to broker loans after being told not to do so by the state.

And the department revoked the mortgage broker’s license held by Diana Martin of Platinum Plus Financial Services in Atlanta for allegedly making “numerous misrepresentations in loan files submitted to lenders.”


Patrick Crowley is a feature journalist and blogger for MortgageDaily.com. He is also a reporter, blogger and columnist for The Cincinnati Enquirer.
e-mail Patrick at: PatCrowley@MortgageDaily.com

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