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OFIS Orders Mortgage Lenders Network USA to Stop Breaking Law, Make Restitution to BorrowersFOR IMMEDIATE RELEASE
January 24, 2007
Contact: OFIS (toll-free) 1-877-999-6442
Media/Press calls: Kathy Fagan - 517-335-1700
The Office of Financial and Insurance Services (OFIS) has issued a Cease and Desist order against a Connecticut-based mortgage lender for violating the Michigan Mortgage Brokers, Lenders, and Servicers Licensing Act (MBLSLA).
The action is the result of an investigation by OFIS into allegations that Mortgage Lenders Network USA, Inc. (MLN) failed to provide funding for mortgage loans that had already closed. The OFIS investigation revealed 14 Michigan consumers whose loans were closed but not funded.
The order directs MLN to cease and desist from violating the MBLSLA. It also requires the company to immediately place with one or more qualified lender(s), with no financial loss to applicants, the company’s entire portfolio of Michigan residential mortgage loans that were closed but not funded.
In addition, MLN must make restitution to each consumer in the amount necessary to put the consumer in the same position as if the company had funded the residential mortgage loan under the terms and conditions agreed upon at the closing of the loan.
“We have been in contact with each of the consumers involved to make sure they are informed and to assist in any way to secure funding of their mortgage loan,” OFIS Commissioner Linda A. Watters said. “This order comes after negotiation between eight states and MLN.”
The investigation was a coordinated effort among OFIS and regulators from all the New England states as well as New York and Pennsylvania.
The complete order can
be found on OFIS’ Web site at www.michigan.gov/documents/cis/MortgageLendersNetworkCease
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