HARTFORD – The state Banking Department has issued notices to revoke the mortgage broker, mortgage loan originator licenses of Woodbridge Mortgage LLC of Glastonbury.
Banking Commissioner Jorge Perez issued the notices on April 9 as well as a notices of intent to issue an order to cease and desist and impose a civil penalty in the matter of Woodbridge Mortgage, Lionel Young Kim and George Guorong Wang for engaging in unfair or deceptive practices. The Order and Notice was the result of an investigation by the Consumer Credit Division.
The commissioner alleges in the Order and Notice that Woodbridge:
- Engaged in an unfair or deceptive practice and received origination compensation based on the terms of mortgage transactions by issuing rebate checks for closing costs to at least seven Connecticut borrowers, which rebates were not reflected on the closing disclosures or otherwise disclosed to lenders
- Failed to maintain complete loan files of at least 27 mortgage transactions by not maintaining various documents necessary to the mortgage transactions, including, but not limited to, copies of initial and final mortgage loan applications, income and asset verifications, loan estimates and closing disclosures
- Failed to file accurate mortgage call Reports on the Nationwide Multistate Licensing System and Registry and failed to maintain records of the adverse action notice for a mortgage loan
- Required consumers to submit documents to verify information prior to the issuance of a loan estimate
- Failed to include its company NMLS unique identifier on business cards
- Made a false, deceptive or misleading statement on its website indicating that Woodbridge lends in Connecticut, when it is solely licensed in Connecticut as a mortgage broker
- Failed to comply with Sections 36a-485 to 36a-498e, inclusive, 36a‑498h, 36a‑534a and 36a-534b of the Connecticut General Statutes, and failed to comply with provisions of Regulation Z (Truth in Lending Act) and Regulation B (Equal Credit Opportunity Act), in violation of Section 36a‑498e(a)(8) of the Connecticut General Statutes
Additionally, the commissioner alleges in the order and notice that Kim failed to include his NMLS unique identifier on business cards, failed to establish, enforce and maintain policies and procedures reasonably designed to achieve compliance, and directly or indirectly, engaged in an unfair or deceptive practice by facilitating the issuance of rebate checks for closing costs to at least seven Connecticut borrowers.
Also, the commissioner alleges that Wang failed to include his NMLS unique identifier and Woodbridge’s NMLS unique identifier on business cards, engaged in an unfair or deceptive practice by facilitating the issuance of rebate checks for closing costs to at least seven Connecticut borrowers, solicited, advertised or entered into contracts for specific interest rates, points or other financing terms with borrowers that were not actually provided by the lenders; and made false or deceptive statements or representations to borrowers with regard to the rates, points or other financing terms or conditions available for a residential mortgage loan or engaged in bait and switch advertising.
Respondents were afforded an opportunity to request a hearing with regard to the allegation set forth in the order and notice.
