Skip All Navigation
|Home | Contact Us | Careers | Calendar||
Site Map |
Maine.gov > PFR Home > Consumer Credit Home Page > All Alerts and News > Mortgage Regulators Issue Consent Order against California Lenders
. . . . . . NEWS
MAINE BUREAU OF CONSUMER CREDIT PROTECTION
35 SHS, Augusta, Maine 04333
Mortgage Regulators Issue Consent Order against California Lenders
March 22, 2007
The Maine Office of Consumer Credit Regulation (OCCR) issued a Consent Agreement and Order on March 22, 2007 restricting the licenses of two affiliated California lenders, New Century Mortgage Corp. and Home 123 Corp., and requiring the companies to work to obtain alternate funding for mortgage loan commitments they made to Maine consumers. The companies have also agreed to cease advertising and to stop accepting new mortgage applications in the State.
In February and March, 2007, consumers and loan brokers reported to OCCR that the two California lenders were slow to provide funding for pending mortgage loans, including loans that had been closed. Failing to fund closed loans is a violation of Maine’s Funded Settlement Act.
For the past several weeks the OCCR has been in constant contact with the California lenders, and has been working daily with Maine consumers and loan brokers affected by the companies’ inability to fund loans. As of the date of the order, all known pending loans to affected Maine consumers have been funded by other sources. If any additional consumers come forward with cases of unfunded loans, the agreement requires New Century and Home 123 to work with mortgage brokers and other lenders to find funding for those loans.
Based in Irvine, California, New Century and Home 123 are subsidiaries of New Century Financial Corp. which is currently the subject of significant media attention and which is under investigation by the U.S. Securities and Exchange Commission.
Should New Century and Home 123 fail to honor the agreement reached, it may face fines and other penalties. The agreement also enhances Maine’s standing should their parent company ultimately file for bankruptcy. Maine consumers who have questions about New Century can call OCCR’s consumers-only hotline at 1-800-332-8529 (1-800-DEBT-LAW).
The Maine Bureau of Consumer Credit Protection was established in 1975 to enforce a variety of credit-related consumer laws. The Office licenses lenders, creditors and collectors; conducts periodic examinations of creditors to determine compliance with state laws; and responds to consumer complaints and inquiries. The Office also conducts educational seminars and provides speakers to advise consumers and creditors of their legal rights and responsibilities.
Last Updated: May 20, 2010 2:10 PM
|Copyright © 2006 All rights reserved.|