Pennsylvania Banking Department Announces Quarterly Report on

0 Comments | U.S. Newswire, Apr 1, 2010

HARRISBURG, Pa., April 1 /PRNewswire-USNewswire/ — The Department of Banking announced it took enforcement actions against 94 mortgage companies and an Internet payday lender during the first three months of the year.

Enforcement highlights included:

The department ordered 83 companies to obtain the required surety bond coverage for their loan originator employees within 30 days or face fines of up to $5,000 and suspension of their Pennsylvania licenses. The bond can be used to reimburse consumers for losses suffered as a result of misconduct by a loan originator.

The department issued cease and desist orders against two unlicensed mortgage loan modification companies. Any employees who negotiate loan modifications must also be licensed.

The department entered into consent agreements with nine mortgage companies for unlicensed activity or making misstatements on forms to the department.

The department issued a cease and desist order against an Internet payday lender after receiving complaints from Pennsylvania consumers who were charged interest and fees in excess of state law.

A comprehensive list of enforcement actions taken by the Department of Banking is available online at www.banking.state.pa.us
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