Connecticut’s banking commissioner today suspended the licenses of Mortgage Lenders Network USA Inc. to grant mortgages and act as a secondary mortgage broker in the state, and restated an intent to collect millions in penalties for failing to fund loans it closed.
Connecticut authorities on Jan. 19 issued a temporary cease-and-desist order to MLN, claiming the company failed to fund “in a timely fashion” 97 loans in Connecticut and 1,409 loans in other states.
Hartford, Conn.-based MLN shut down its wholesale lending division in December after reportedly losing access to credit it needed to make loans the company sold in the secondary market.
In the suspension, the banking commissioner reiterated previous warnings that MLN faces civil penalties of up to $7.6 million, and that the state may refuse to renew the company’s first and secondary mortgage lender and broker licenses. MLN has the right to a hearing to respond to the allegations.