R.I. suspends license of sub-prime lender

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, plus New York, Pennsylvania and Michigan, DBR Director A. Michael Marques said.

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 awaiting the funding of mortgages originated by the company, the DBR gave it time to make arrangements to fund the loans, Marques said.

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