Industry News

Massachusetts shuts down three more mortgage lenders

Hearing on new mortgage lending regulations set for Oct. 17
Published on Oct 3, 2006

Continuing a crackdown on alleged mortgage fraud, Massachusetts regulators issued cease-and-desist orders against two mortgage brokerages Monday and shut down a third unlicensed lender.  Since issuing emergency regulations Sept. 8, the Massachusetts Division of Banks has conducted sweeps looking for instances in which borrowers' income was inflated to qualify them for loans they could not afford. Surprise inspections have turned up many instances in which falsified documents were used to inflate incomes. A public hearing on the emergency regulations is scheduled for 10 a.m. Oct. 17 at One South Station, 5th Floor, in Boston. The new regulations would explicitly forbid lenders from falsifying income or asset information, or having borrowers sign blank or incomplete loan applications. In the latest inspections, cease-and-desist orders were issued against two licensed brokers, Confidence Mortgage and Middlesex Financial Associates LLC, who allegedly falsified information on loan ...

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