Industry News

Connecticut nixes new venture by former MLN exec

Unresolved allegations present licensing obstacle

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Connecticut regulators say they won't issue a mortgage broker's license to a company headed by a former executive of bankrupt subprime lender Mortgage Lenders Network USA. The new company, InHome Capital LLC, filed an application with the state Department of Banking on May 16. In denying the application this week, Banking Commissioner Howard Pitkin said MLN had allegedly failed to close 1,500 loans it issued commitments for. Pitkin also noted that the state Department of Labor is seeking an arrest warrant against a former MLN executive for allegedly failing to pay its employees wages totaling up to $3 million. The executive, MLN President Mitchell Heffernan, has asked a bankruptcy court to block the issuance of the arrest warrant (see Inman News story). The Banking Commissioner also rejected InHome Capital's application to register 21 loan originators, saying they must be associated with a licensed broker. An employee who answered the phone at InHome Capital's Middletow...