Saturday, April 19, 2014

Some mortgage originators accused of fraud remain in business

Adam Goulet, Joshua Hankins and Roger Moore were dealt what looked like professional setbacks when they lost their licenses to originate mortgages for homebuyers in North Carolina.

In separate cases, federal authorities said all three gave false information to lenders when they bought investment properties in Charlotte.

But all three remain in the mortgage business because of settlements with the N.C. banking commissioner. They are making loans from their Charlotte, N.C., offices for mortgages in about a dozen other states where they are licensed.

A federal law designed to increase trust in the mortgage industry has loopholes that allow loan originators accused of fraud to negotiate settlements and keep issuing mortgages in other states.

The Secure and Fair Enforcement for Mortgage Licensing Act of 2008 requires states to participate in the Nationwide Mortgage Licensing System, a public database that shows the states where an originator is licensed. The database also shows whether an originator's license has been stripped or expired.

Source and Full Story Here: http://www.newsobserver.com/2014/04/18/3795042/some-mortgage-originators-accused.html?sp=/99/104/


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