The Multi-State Mortgage Committee brought down a settlement agreement and consent order against the company, which is licensed in a number of states including Arizona, to the tune of $5.3 million, saying they violated mortgage-license testing and continuing education rules.
The case came out of New Hampshire and a subsequent investigation conducted by the Maryland Commissioner of Financial Regulation.
The MMC was created by state financial regulators through the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators to coordinate the examination, investigation, and supervision of mortgage lenders and brokers that operate in more than one state.
National Mortgage News reports it’s unclear how widespread the problem is, but the incident raises doubts at an important time, given the recent rise in licensing-renewal rates among individual loan officers and financial institutions.
To learn more about this investigation, read the full National Mortgage News report here.