Routine Examination Turns Costly
When New Hampshire regulators were given loan files for a routine examination of a mortgage brokerage, they became suspicious about missing documents. With a little more work, they found the missing documents in a shredding bin and reconstructed them only to find altered documents on loans from that state and from Massachusetts. In addition to fining the broker $400,000, they alerted Massachusetts regulators -- who then took their own actions.
The New Hampshire Banking Department has entered into a consent order with The Mortgage Specialists Inc. Also listed in the order were the company's owner Michael Gill and its compliance officer Lisa Tracy.
In a staff petition dated July 23, the state said it conducted a routine examination of 20 loan files.
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Bank Sued Over Failed Firm
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Broker, Bank Exec Busted
A mortgage broker has pleaded guilty to helping a former executive of a Florida bank overcharge the banks borrowers. The two pocketed the difference while the bank wound up embroiled in lawsuits.
ResCap Suing to Force Repurchases
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Federal Regulators Busy
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Another State Sues Countrywide
West Virginia has joined a host of other states suing Countrywide Financial Corp.
FDIC Fighting Subprime Repurchases
A pending federal lawsuit seeks to force the Federal Deposit Insurance Corporation to repurchase more than 1,000 subprime mortgages that have defaulted since they were acquired by a Texas-based bank more than five years ago. The loans were originated by a failed Illinois bank.
Massive Losses, Legal Actions & 1 Done
Around $8.8 billion in mortgage-related losses were reported by U.S. firms this week. Other recent corporate activity included the issuing of several orders against banks, the disclosure of a major securities investigation, the filing of another investor class action and a warning about liquidity from Residential Capital LLC.
Ohio Sues 2 Brokers
Two mortgage brokers and an appraiser have been sued by the State of Ohio. In addition to allegedly failing to provide required disclosures, the companies are being sued because they listed property values on appraisal orders.
Firms Fined More Than $300k Over Ads
A mortgage broker and a rapidly growing FHA lender operating in Washington have agreed to pay fines totaling more than $300,000 over allegations of false advertising. The move is the latest in the state's crackdown on mortgage lending activity.
