Oregon, others settle with mortgage co. over cheating
The Oregon Department of Consumer and Business Services, Division of Finance and Corporate Securities announced Wednesday its participation in a multi-state settlement agreement and consent order between 43 state mortgage regulators and New Day Financial LLC.
The settlement is a result of investigations conducted by Delaware and Maryland into institutionalized cheating on testing and continuing education requirements for licensed mortgage professionals. Practices at the company included sharing test information and taking continuing education courses on behalf of others.
In order to protect Oregonians, the division holds mortgage loan originators to high standards of ethics and education.
“Oregonians have a right to trust that the licensed mortgage loan originator they are working with is a trustworthy, financially responsible, and competent professional,” said David Tatman, division administrator. “Any efforts by companies or individuals to cheat on testing or continuing education requirements will be held accountable.”
The order includes the following main points:
* A $5.28 million administrative penalty to be divided equally among the 43 participating states
* The removal and replacement of New Day’s chief operating officer
* The hiring of an independent auditor to evaluate New Day’s policies and procedures and review New Day’s training and education program to determine if additional remedial action is necessary to supplement the changes already implemented
* A report from New Day within 270 days identifying the manner in which the company proposes improving its corporate management and governance structures
Along with Oregon, Delaware, and Maryland, mortgage regulators from the following states participated in the agreement: Alabama, Alaska, Arizona, Arkansas, California, Connecticut, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, North Carolina, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Virginia, Washington, Wisconsin, Wyoming, and the District of Columbia.
A copy of the Settlement Agreement and Consent Order is available at cbs.state.or.us/external/dfcs/enf_orders/M-15-0059.pdf.
