Saturday, August 16, 2008

Oregon Finally Goes After Mortgage Brokers

From the Portland Business Journal:

Four mortgage companies received cease-and-desist orders and fines from the Oregon Department of Consumer and Business Services for violating Oregon’s mortgage lending laws.
Allegiance Mortgage LLC.
The state revoked the mortgage lending license of Allegiance Mortgage of Springfield for failing to supervise its loan originators and submitting fraudulent financial information to the department. The division also issued a cease-and-desist order and levied a $50,000 fine against Allegiance and owner Brian Fallini for allowing its loan originators to falsify mortgage loan applications to obtain loans.
Diamond Financial Mortgage Group of America Inc.
The state revoked the license of Diamond Financial Mortgage of Tigard for fraudulent transactions. The division formerly issued an order against Diamond in 2006, then owned by Kevin Covington, for violations of the Oregon Mortgage Lending Laws.
1st American Inc.
The state ordered mortgage broker 1st American of Portland and owner Eric Otterholt, to cease and desist from unethical practices, failure to supervise, and other violations.
Pacific Crest Funding Inc.
The state issued cease-and-desist orders against mortgage broker Pacific Crest Funding Inc. of Eugene for failing to supervise a loan originator, and one of its loan originators for failing to complete training. The company repeatedly disregarded the department’s requirement, after warnings, to show that its loan originator and co-owner, Dean Schmidt, had completed his required training.

From the Oregonian:

"These cases involved some pretty outrageous circumstances," said David Tatman, administrator of the department's Division of Finance and Corporate Securities, "and have the impact of damaging the entire industry, as well as individuals."