Mortgage Daily Logo

More Mass. Brokers Busted

Mortgage News

Massachusetts regulators have issued cease and desist orders against two mortgage brokers for alleged fraud and four mortgage companies that were operating without required licenses.

The Division of Banks closed licensed brokerages Confidence Mortgage and Middlesex Financial Associates LLC as result of its ongoing sweep looking for evidence that borrowers were led into loans they cannot afford by inflating borrower income, according to an announcement last week.

The division issued a temporary cease and desist order against Confidence after an on-site inspection at the main office in Lawrence, Mass., revealed that Confidence had submitted to lenders applications in which the loan prospect’s stated gross monthly income differed significantly from the gross income in other pertinent documentation. Evidence was also found that Confidence allegedly altered or redacted information contained in loan file documents relating to the income or employment of the applicant.

On one loan, the total amount of stated income on the application was more than $43,000 over the total amount of documented income, according to the cease and desist order against Confidence, which did not respond to’s request for a statement.

The division found that Middlesex was conducting mortgage broker business at an unlicensed office in Lowell. As a result of site inspections, the division reportedly found that Middlesex completed loan applications in which it misrepresented the number of units of the property to be mortgaged and that the properties were to be the primary residence of the same individual, and failed to accurately represent that the same gross income would be applied to make payments on two separate loans on two separate properties.

Confidence was not immediately available for comment and Middlesex declined to comment.

The companies have 20 days to appeal the division’s orders.

Of the other four actions taken, three were against mortgage businesses that operated at unlicensed locations while Treasury Financial Group out of Buffalo, N.Y., was not licensed at all to conduct business in the state and was using the license number of an unrelated company, the division said.

“I hope the message is loud and clear that we will not tolerate unfair and deceptive practices or fraud to be committed by licensed companies and we will take swift action to shut down any businesses writing mortgages without the proper license,” said Commissioner of Banks Steven L. Antonakes in the announcement.

The actions against the six companies are the latest in Massachusetts’ crackdown on mortgage fraud — bringing to 17 the number of enforcement actions the division has taken in the past few weeks of which many involved reduced documentation loans. Three weeks ago, the division also issued an industry letter to mortgage companies and emergency regulations as part of its plan to address abusive mortgage practices and prevent foreclosures.

On Oct. 17, the division will hold a public hearing in Boston on the emergency regulations.


Cease & Desist Issued Against Mass. Broker
A Massachusetts branch manager who falsified loan documents and paid fees to unlicensed originators has been shut down by the state — costing his employer $200,000.

Related Posts

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

There is No Such Thing as a Free House …

Over the past several years, those who service loans in the State of Washington(1) have seen a dramatic rise in the number of lawsuits in which delinquent borrowers seek to quiet title to their homes on the grounds that lenders are barred from foreclosing based on...

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

The Mortgage Graveyard 2018 Archives

The Mortgage Graveyard 2018 Archives Failed, Struggling and Acquired Mortgage-Related Companies Non-Bank Closures 3 Bank Failures (FDIC) 0 Credit Union Failures 0 Total Mortgage-Related Failures 3  

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

MBS Statistics

MBS Statistics Non-Agency Issuance 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 Private Label RMBS Issuance (S&P) $80 billion to $100 billion (est) $70 billion $34...

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

Sample E-Mail

Sample E-Mail   Covering the Real Estate Finance Since 1999  Mortgage Industry News free news content | view headlines online  Advertorial Text Ad This ad includes a linked bold headline of up to 50 characters and up to 100 words of text. The ad can be...

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...


Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI