Illegal Mortgage Broker Ordered to Cease
Banking regulators took this action upon becoming aware that Boston Financial Group had contacted a lender in order to assist in the placement of mortgage loan(s) on residential property in Massachusetts. It appears that Boston Financial Group attempted to facilitate its unlicensed mortgage broker activity by providing the lender with a fabricated letter, under the seal of the Commonwealth and the signature of the Division, which stated that the Division had approved Boston Financial Group's application for a mortgage broker license.
This letter was neither prepared nor issued by the Division of Banks. Misappropriating the authority of the Division, and that of the Commonwealth, by introducing a false document into the mortgage lending market upon which the lender was to rely, is a serious violation of the laws governing the fair and honest operation of the mortgage industry in Massachusetts. Moreover, the integrity of all mortgage documents is vital to the process of lending money and recording ownership.
"A home purchase or refinance is likely the most significant financial transaction in an individual's life. Consumers should never seek mortgage financing from a company that is not licensed," warned Beth Lindstrom, Director of Consumer Affairs and Business Regulation. Steven L. Antonakes, Massachusetts Commissioner of Banks, added that, "Licensing standards exist for a reason. The licensing process is utilized to ensure that all companies are financially sound and meet strict character and fitness standards. The Division will not tolerate companies who are operating in Massachusetts without a license and are engaging in practices which deceive both consumers and other participants in the mortgage industry."
Under Massachusetts law, licensed mortgage lenders and mortgage brokers must disclose their licensing number in writing at the time a fee is paid or a mortgage loan application is accepted. Anyone wishing to verify the license status of a mortgage lender or mortgage broker should check the Division's web site at www.mass.gov/dob or call the Division of Banks' Consumer Hotline at 1-800-495-BANK(2265). Consumers can also inquire as to whether there are any complaints outstanding against a licensed mortgage lender or mortgage broker.