State regulators this week fined Mortgage Access Corp., an affiliate of realty giant Weichert, $3 million for using unlicensed mortgage originators. The settlement covers 10 states.
The Morris Plans, N.J.-based lender also agreed to set up systems that prevent it from processing applications by unlicensed originators who have not passed state testing and education requirements.
The Conference of State Bank Supervisors, and the American Association of Residential Mortgage Regulators pursued the settlement after a multi-state examination program detected compliance problems.
Louisiana financial institutions commissioner John Ducrest said the MAC settlement demonstrates the "effectiveness of the multi-state effort as a platform to regulate large companies across the country."
MAC is part of Weichert Financial Services, a nonbank mortgage lender operating in 43 states. WFS is affiliated with the real estate brokerage company Weichert.
Under the agreement with regulators, MAC must implement a system for investigating all complaints submitted by consumers and state and federal agencies that raise suspicions about the firm using unlicensed originators.
MAC also must hire an independent auditor to conduct a review of all loan applications taken from September 2010 through March 31, 2011 to check for compliance with state mortgage licensing laws.
According to a company statement, MAC began making improvements in its mortgage origination procedures and processes in August 2010 -- just before the multi-state examination began in September 2010. "The company cooperated fully with state mortgage regulators throughout the process, and entered into an agreement solely to resolve the matter without admitting any wrongdoing or legal/regulatory violations," the lender said.
