The Georgia Department of Banking and Finance this week entered into a consent order with reverse mortgage lender Generation Mortgage to resolve allegations regarding violations of the state’s Residential Mortgage Act.
The basis for the consent order was an outside entity’s alleged failure to be properly licensed.
The Georgia regulator accepted that Generation did not agree to any failure to meet their regulatory obligations although the company agreed to pay a fine of $5,000 to the department as well as $2,000 to the State Regulatory Registry.
Although Generation did not agree to violating any regulation, the company said it appreciates and respects the regulator’s guidance and has agreed to review its processes and procedures to ensure compliance not only within Generation, but also compliance of the company’s partners.
The consent order states “Generation Mortgage shall develop and implement practices that will ensure compliance with all applicable Georgia laws and regulations, including not directly or indirectly transacting business as a mortgage lender in the State of Georgia with any unlicensed ‘Person.'”
The Department declined to comment further on the allegations that led to the order.
Generation says it has dealt with the issue and is continuing with business as usual.
“The issue was brought to our attention by regulators, we addressed it promptly and now we are moving on,” a Generation spokesman told RMD.
Written by Elizabeth Ecker