The Massachusetts Division of Banks fined Mortgage Master Inc. $585,000 for using unlicensed mortgage brokers and other violations of state law. The fine is one of the state’s largest penalties against a mortgage company in recent memory.
The Boston Herald is reporting the company has agreed to pay $495,000 in penalties for using unlicensed mortgage originators, another $60,000 for operating in unlicensed locations, and $5,000 for making reverse mortgage violations on residential property without first obtaining state approval.
According to settlement documents, Mortgage Master has agreed to not make or offer any reverse mortgage loans on residential property in Massachusetts unless the Corporation obtains prior approval of the reverse mortgage program from the Division. Mortgage lenders in the state must recieve specific approval to solicit and make reverse mortgage loans in Massachusetts.
Mortgage Master has also agreed to refrain from submitting an application to obtain approval to make reverse mortgage loans in the state for twelve months from the effective date of the settlement agreement.