PROVIDENCE – The R.I. Department of Business Regulation has suspended the license of Mortgage Lenders Network USA Inc., as part of an ongoing investigation into possible violations of state laws by the Middletown, Conn.-based sub-prime mortgage lender.
The license suspension was part of a coordinated effort between all the New England states, New York, Pennsylvania and Michigan, A. Michael Marques, the state banking commissioner and director of the DBR, said in his Friday announcement.
Rhode Island's Market Has Changed. Developers, Builders, Investors and Sellers Must Change With It.
By Emilio DiSpirito IV License Partner | Engel & Völkers Oceanside Leader | The DiSpirito…
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Mortgage Lenders Network has had problems meeting its loan guarantees in recent months as foreclosures have skyrocketed and the market for high-risk mortgages has taken a downturn, the DBR said.
To protect Rhode Island consumers who are awaiting the funding of mortgages originated by Mortgage Lenders Network, “time was given to the Company to complete an arrangement to fund the loans,” Marques said. “As a result, nearly 400 of the outstanding loans were funded nationally.”
Marques noted: “This order comes after days of negotiations between nine states, including Rhode Island and the company, in an attempt to have MLN fund as many of the closed but not funded loans as possible.”
