Massachusetts Attorney General Martha Coakley filed a lawsuit against a Massachusetts-based mortgage broker, alleging that the broker fraudulently procured mortgage loans by submitting to lenders asset and income information for loan applicants that was fabricated or inflated. The AG is seeking injunctive relief to prohibit the broker from acting as a mortgage broker, civil penalties, and reimbursement of the AG’s costs. This enforcement matter was referred to the AG by the Massachusetts Division of Banks after an examination found brokering misconduct in numerous mortgage loans arranged by the broker. Click here for the AG’s press release.
Alert March 11, 2008