Industry News

North Carolina fines CFIC Home Mortgage $848,000

Georgia revoked Florida lender's license in March

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A Florida-based mortgage lender has agreed to pay $848,000 to settle allegations by North Carolina regulators that the company operated without proper supervision and control of its loan officers. Challenge Financial Investors Corp. was accused of operating a "net branch" company, where loan officers were allowed to operate with minimal supervision in exchange for a small fee for each loan originated in the company's name. Challenge, which does business as CFIC Home Mortgage, accepted more than 100 mortgage applications from individuals not licensed to do business in North Carolina, the Office of the Commissioner of Banks alleged. "We will not allow mortgage companies to play fast and loose with our licensing requirements," Deputy Commissioner of Banks Mark Pearce said in a statement. "We hope that other companies will take note of this agreement and make sure they operate with complete supervision of their loan officers." North Carolina regulators say they found no evid...