The Pennsylvania Department of Banking’s Bureau of Compliance, Investigation, and Licensing has launched an initiative to identify unlicensed mortgage activity in the state.
During the first quarter, the department issued 24 orders for unlicensed mortgage activity, with associated fines totaling $456,250 according to a statement.
The department launched this initiative as part of the implementation of the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act) requirements and state-level mortgage reforms enacted in 2008 and 2009,” said the agency in a statement. “This initiative will target all mortgage licensees and is expected to continue into 2011.”
Earlier this year, the department published a new policy for the reverse mortgage industry to define proper conduct of lenders and help protect older homeowners. The agency is concerned about the potential for older consumers to be victimized by bad advice or outright fraud. “As reverse mortgage loans become more available, licensees may not be fully cognizant of the propriety of, and the necessary business practices required to limit risks to consumers in this Commonwealth who use, reverse mortgages.”
A list of enforcement actions taken against non-depository institutions can be seen here.