The Georgia Department of Banking and Finance this month took action against two mortgage originators for engaging in unlicensed activity.
On April 8, the department issued a cease-and-desist order to Miami-based mortgage lender Yale Mortgage Funding LLC for allegedly engaging in mortgage lending activities without a license.
The department will rescind the order if Yale Mortgage Funding shows proof of licensure within 30 days.
Just a week later, on April 15, the department entered into a consent order with City Mortgage Corp. (also known as i3 Lending) and its owners, Stephen Mark Wilson and Sujay Kanth, as well as ESS Solutions LLC.
According to the department, ESS Solutions acquired City Mortgage in April 2014 and changed its name to i3 Lending, but because the department never approved a trade name for City Mortgage using i3Lending or any other proposed name, i3 Lending was therefore operating without a mortgage origination license. Pursuant to Georgia law, “no person may acquire directly or indirectly 10 percent or more of the voting shares or ownership of a licensed Georgia mortgage broker or lender without first filing an application, paying the fee and delivering information such as the department requires concerning the financial responsibility, background, experience and activities of the applicant.” Failure to comply with this law is a revocable offense and subjects the licensee to a fine.
The department ordered City Mortgage to surrender its mortgage lender license and pay a $5,000 fine. Wilson, whose license is deemed surrendered, will pay $1,000 in fines and contribute an additional $1,000 to the State Regulatory Registry LLC to support the Nationwide Mortgage Licensing System. Kanth is prohibited from directing the affairs of or acting as a branch manager of a licensed Georgia mortgage broker or lender, and from acquiring more than 10 percent of the ownership of a licensed Georgia mortgage broker or lender for five years. Kanth must also contribute $1,000 to the State Regulatory Registry.