Massachusetts DOB Cracks Down on Unlicensed Mortgage Lender

FHA  •  Massachusetts Division of Banks

On August 22, 2017, the Massachusetts Division of Banks (DOB) entered into a consent order with a mortgage lender and its president and owner, resolving allegations that the lender had “engaged in a years-long pattern of submitting false financial statement[s]” to the Federal Housing Administration (FHA), representing that the lender and owner was “properly audited by independent certified public accountants,” when in fact, the lender was not.  The lender had submitted the same documentation to the DOB as a part of its application for a mortgage lender license in Massachusetts.  According to the consent order, the lender and owner must “cease engaging in the activity of a mortgage lender in Massachusetts,” and refrain from applying to obtain a license from the DOB for at least 120 months.

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