Several states have settled with a mortgage lender for violations of various state licensing laws. After an investigation into the practices of the mortgage lender, state banking regulators determined that the lender was engaged in mortgage loan origination activities for which a mortgage loan originator licensed was required. The terms of the settlement require the mortgage lender to eliminate certain positions within its organization, require its loan originators to obtain mortgage origination licenses, provide the regulators with scripts it develops for its unlicensed employees when speaking with borrowers and provide quarterly reports to the regulators. The lender also agreed to reimburse the Pennsylvania Department of Banking and Securities for its investigative costs and pay over $2 million in civil money penalties to various state banking regulators.
Alert August 20, 2013