Maverick Funding Corp. of New Jersey has hired counsel and expects to give a complete response to Connecticut regulators on Thursday concerning reports that it did not disclose litigation against its founders — as required — when it filed for a lending application in the state.
One of its attorneys is E. Robert Levy, who is also executive director of the New Jersey Mortgage Bankers Association. Mr. Levy told National Mortgage News that the Parsippany-based nonbank will give the Connecticut Department of Banking a "complete response and answer to everything" by Thursday.
He stressed that Maverick continues to fund loans, has strong warehouse relationships with its bankers, and enjoys "below average" delinquencies on its Federal Housing Administration production.
The company found itself in the news recently when The Hartford Courant reported that while it was applying for a license to lend in the state, it failed to disclose that its founders were "embroiled in a lawsuit that accused them of acts of fraud, negligence and conspiracy at a previous mortgage company."
Mr. Levy said the lawsuit in question has been settled out of court, adding that "there were no negative findings." He noted that "all this is overshadowing a good quality company."
The attorney declined to provide any production volumes for Maverick. Maverick CEO Ralph Vitiello said "our warehouse banks are aware of the situation. We are absolutely still doing business."
The Connecticut Department of Banking declined to discuss the matter. The Courant quoted state banking commissioner Howard Pitkin as confirming an investigation of Maverick but no details were provided.
