The New Jersey Department of Banking and Insurance conducted 173 examinations of mortgage licensees last year, finding that 90% of firms had a violation of some type or another, according to Patrick Mullen, assistant division director of the agency’s Office of Consumer Finance.
Speaking at the Northeast Conference of Mortgage Brokers in Atlantic City Wednesday afternoon, Mullen noted that the 173 examinations turned up a total of 4,347 violations—or 25 per examination.
Deficiencies in loan documentation were the most common violation, accounting for 55% of the problems. Charging impermissible fees was the next most common violation at 11%.
In his presentation, Mullen urged mortgage professionals to be engaged with their regulators. “Make sure you let your voice be heard,” he said.
Tim Siwy, deputy secretary for non-depository institutions at the Pennsylvania Department of Banking and Securities, added that his state’s regulators are working to remove “obstacles” from the exam process, concentrating on issues whose removal will not affect consumer protection.
Keisha Whitehall Wolfe of the Maryland Department of Labor, Licensing and Regulation said communication between the mortgage licensee and the examiner is important to making the process work. She added that her department’s exams have unearthed
Thomas Hunt, deputy assistant division director for the New Jersey Department of Banking and Insurance, said his office discovered a similar problem when conducting multistate exams.
