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OFIS Orders Mortgage Lenders Network USA to Stop Breaking Law, Make Restitution to Borrowers
FOR 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
andDesist_184288_7.pdf.
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