NPL Investor Hit with Cease-and-Desist Order
Irvine, CA-Kondaur Capital Corp. here - an investor in nonperforming loans - has been hit with a final cease-and-desist order by the state of Georgia for engaging in mortgage broker/lending activities without a license or without first obtaining an exemption.
Kondaur is a fast-growing nonperforming loan investor that hopes to triple its workforce to 900 employees by the end of this year.
Company chairman and chief executive officer Jon Daurio declined to comment on the matter, except to say his firm does not originate or broker loans in the state.
But one NPL investor told Mortgage Servicing News that Kondaur may not have been licensed to service mortgages in Georgia either.
According to K&L Gates, roughly 25 states have some type of licensing requirements tied to the actual servicing of loans, which means Kondaur could be forced to find a subservicer in the state or sell its loans.