Lender faces up to $7.6 million in civil penalties
Tuesday, January 30, 2007
Inman News
Connecticut's banking commissioner today
suspended the licenses of Mortgage Lenders Network USA Inc. to grant mortgages
and act as a secondary mortgage broker in the state, and restated an intent to
collect millions in penalties for failing to fund loans it closed.
Connecticut authorities on Jan. 19 issued a temporary
cease-and-desist order to MLN, claiming the company failed to fund "in a
timely fashion" 97 loans in Connecticut and 1,409 loans in other states.
Hartford, Conn.-based MLN shut down
its wholesale lending division in December after reportedly losing access to
credit it needed to make loans the company sold in the secondary market.
In the suspension,
the banking commissioner reiterated previous warnings that MLN faces civil
penalties of up to $7.6 million, and that the state may refuse to renew the
company's first and secondary mortgage lender and broker licenses. MLN has the
right to a hearing to respond to the allegations.
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Copyright 2007 Inman News
