Illegal Mortgage Lender Ordered to Cease
American Mortgage's advertisements included numerous misleading terms and claimed "FDIC Insured Funds Now Offered". American Mortgage is not licensed to operate in the Commonwealth as a mortgage lender or mortgage broker. It is not a bank and cannot be insured by the Federal Deposit Insurance Corporation ("FDIC").
"A home purchase or refinance is likely the most significant financial transaction in an individual's life. Consumers are well advised to verify the licensing status of a company before entering into a contract with a mortgage financing company," warned Director of Consumer Affairs and Business Regulation Beth Lindstrom.
Massachusetts Commissioner of Banks Steven L. Antonakes added, "Licensing standards exist for a reason. The licensing process ensures that all non-bank companies are financially sound and meet strict character and fitness standards. The Division does not tolerate unlicensed companies operating in Massachusetts and misleading consumers."
Under Massachusetts law, licensed mortgage lenders and mortgage brokers must disclose their licensing number in all advertisements. 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), x 501. Consumers can also inquire as to whether there are any outstanding complaints against a licensed mortgage lender or mortgage broker.