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Press Release Division of Banks Announces Findings of Unlicensed Loan Servicing and Debt Collecting Activities of Massachusetts Loans

Regulatory exam uncovers unlicensed activities by regulated entity
For immediate release:
11/06/2017
  • Division of Banks

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Chris Goetcheus, Communications Director

Boston, MAThe Massachusetts Division of Banks (Division) announced actions taken against THE MONEY SOURCE, INC., a Melville, NY based licensed mortgage lender and debt collector to address unlicensed loan servicing and debt collecting activities on Massachusetts originated loans.

The Division’s findings include unlicensed loan servicing or debt collecting activities on 568 Massachusetts loans. The enforcement actions taken by the Division assure that the Company obtain the appropriate licenses to perform certain activities as issued by the Division and included administrative fines and penalties totaling $142,000 to be paid to the Commonwealth.

THE MONEY SOURCE, INC. is a rapidly expanding, nationally recognized licensed mortgage lender and servicer. Current exam findings and enforcement actions will require that the Company institute all appropriate corrective actions as a result of the Division’s examination including any consumer reimbursements as a result of poor loan servicing or debt collecting activities. The Division anticipates over $23,000 in reimbursements to more than 200 Massachusetts consumers as a result of its action.

“The actions taken by the Division build on our collective agency efforts to enforce consumer protection laws and ensure businesses are treating consumers fairly,” said Consumer Affairs Undersecretary John Chapman. “Consumers should be certain that the companies they are dealing with are appropriately licensed and following the rules, and that we will utilize our regulatory authority if they are not.”

“The Division works to protect Massachusetts consumers from inappropriate mortgage practices by assuring that all activities are duly licensed and appropriately supervised,” said Commissioner of Banks Terence McGinnis. “By ensuring these companies are properly licensed and regulated, they will be subject to regular on-site examinations to determine compliance with various consumer protection laws.”

Additional information including the rules governing mortgage licensing, instructions on how to file a complaint, and information relative to the license application requirements can be found on the Division of Banks website at www.mass.gov/dob. Please visit the Division’s Consumer Money Matters webpage for tips to protect consumers from unlawful lending practices.

 

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Media Contact

Division of Banks 

The Division of Banks (DOB) is the chartering authority and primary regulator for financial service providers in Massachusetts. DOB's primary mission is to ensure a sound, competitive, and accessible financial services environment throughout the Commonwealth.

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