Georgia’s Department of Banking and Finance has finalized a cease-and-desist order against Community Legal Center LLC, located in Doraville, Georgia, according to National Mortgage News.
The department says it has evidence that Community Legal Center was brokering mortgages and originations without a license or proper exemption.
According to its web page, Community Legal Center offers a wide range of commercial and civil legal services. Assistance with real estate and commercial transactions under main areas of legal practice is included.
The cease-and-desist order applies only to mortgage-related activities. Georgia allows attorneys licensed in the state to negotiate mortgage terms only if the negotiation is part of a separate legal case or matter for which an attorney represents the client, not as a primary service.
In addition, Lawyers.com states that “As of March 1, 2009, all 50 states and the District of Columbia regulate the conduct of mortgage brokers, or require their licensing or registration, or both.”
As informed MH Professionals know, the Consumer Financial Protection Services has added their own layers of information and requirements, to avoid steering or doing anything they think smacks of LO activity.
A majority of states now require mortgage brokers to be licensed in order to be compensated as such. In those states, unlicensed mortgage brokers will be barred from being paid their agreed-upon commissions. Some states even make it a criminal offense for anyone to compensate an unlicensed broker for performing acts for which a license is required. In most states a licensed real estate broker may not receive a fee for acting as or for a mortgage broker without a separate mortgage broker’s license.
These rules also apply to anyone who is brokering or negotiating mortgages on manufactured housing. Applications for a new mortgage broker/processor or lender license or registration must be made through the National Mortgage Licensing System (NMLS). ##
Related stories: Andy Gallagher on LO Comp Rule – a guide for MH Retailers and Selling MH Communities.
An article by licensed MH lender, linked here.
(Photo Credit: telegraph.co.uk)
