Mass. Division Of Banks Closes 82 Lenders And Brokers

Posted by Orb Staff on June 05, 2009 No Comments
Categories : Residential Mortgage

a failure to provide required financial information, including the failure to post a bond, the Massachusetts Division of Banks has issued 87 cease-and-desist orders against licensed lenders and brokers in the state. Five of the 87 companies have since provided the division with satisfactory evidence they have a bond, and those companies will be allowed to continue doing business in Massachusetts. The companies are Approved Home Mortgage Inc., JP Mortgage Group LLC, Mason Mortgage LLC, Multi-State Mortgage Inc. and Slade Mortgage Group Inc. In 2007, the division amended its regulations with the goal of raising the barriers into entry to the mortgage business. The new regulations required mortgage broker applicants to submit a bond in the amount of $75,000 and to submit financial statements annually that have been either audited or reviewed. Mortgage lender applicants were required to submit a bond ranging from at least $100,000 to $500,000 and to file audited financial statements each year. The state division provided a transition for existing licensees until Dec. 31, 2008, to allow the companies time to obtain a bond. Each of the 87 companies closed was required to submit their financial statements and evidence of a bond to the division no later than March 31. "Failure to submit a bond could be an indication of the underlying weakness of the company," says Commissioner of Banks Steven L. Antonakes. "However, given the current state of the mortgage industry, I expect that the unresponsiveness of these companies is a result of their winding down their operations or having already closed. In any event, the division will not tolerate any licensee that has willfully failed to comply with these requirements." SOURCE: Massachusetts Division o

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