Mortgage Daily Logo
mortgage news from industry experts

Nebraska Nails License Violators

Nebraska Nails License Violators

Orders issued against Probity, Performance

December 21, 2005

By COCO SALAZAR

photo of Coco Salazar
Nebraska officials charged two mortgage companies with violating the states revised licensing laws — leaving one out of business.

The state’s Department of Banking and Finance announced Thursday it ordered Probity National Mortgage Corp. to pay a fine of $227,500 in addition to investigation and hearing costs. Michael E. Peterson, Probity’s chief executive and president, received a separate fine of $113,750.

The West Des Moines, Iowa-based mortgage banker continued to operate in Nebraska under multiple names using just one license even though the state now restricts each license applicant to one corporate name and one trade name, the department reported.

Thereafter, “it failed to maintain a surety bond, required by law for the protection of consumers, so we canceled its license,” said Mike Cameron, department legal counsel, in the announcement.

The department indicated a portion of the fines were a consequence of unlicensed branch activity, but said the bulk of the fines against Probity and its chief resulted from failure to cease and desist offering loans to Nebraskans through the company’s Web site as ordered by the department in July 2005.

Each day after May 27 that Probity continued to offer mortgages on its site is a separate violation of state law, the department indicated.

Probity could thus receive more fines. As of Thursday afternoon, its Web site continued to say that it offered loans in Nebraska. Thirteen other states were listed.

The department said no one representing Probity appeared at a Sept. 22 hearing to respond why the company should not be fined for disregarding an order to cease conducting mortgage banking activity in Nebraska and for offering loans from unlicensed branches and their Web sites.

Two phone numbers on Probity’s Web site were disconnected and a number listed for Probity’s 1501 42nd Street base office in West Des Moines lead to a voice-message box that was full.

Nebraska regulators also have ordered Omaha-based mortgage broker Performance Lending Group to stop doing business because of state license violations, according to the Lincoln Journal Star. Performance had reportedly been operating as a branch of Mortgage Express but didn’t get a mortgage banking license in its own name after changes to state licensing requirements in 2004.

Performance manager Rick Heckendorn, who attributed the violations to clerical errors, said he is in the process of trying to appeal the banking department decisions, the paper reported.


Coco Salazar is an assistant editor and staff writer for MortgageDaily.com.e-mail: MortgageWriter@aol.com

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...

Newsletter

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

Related Posts

THE TRUSTED PROVIDER OF ACCURATE RATES AND FINANCIAL INFORMATION