Regulators from Kentucky, other states settle with hundreds of mortgage loan originators
FRANKFORT, Ky. (WYMT) - Financial regulators from Kentucky and 42 other states have reached a settlement with nearly 450 mortgage companies over deceptive practices.
Officials with the Kentucky Department of Financial Institutions or DFI say the 441 loan originators claimed they had completed required continuing education as required under both state and federal law when they had not.
“The mortgage industry is critical to Kentucky, as it helps Kentuckians finance homes,” said Jeff D. Jacob, Director of DFI’s Non-Depository Division in a news release. “The Kentucky Department of Financial Institutions has high expectations for individuals in the mortgage industry, and we require individuals and companies to comply with applicable laws and to operate in a professional manner.”
As part of the settlements, the mortgage loan originators agreed to surrender their licenses for a period of three months, pay a fine of $1,000 for each state in which he or she holds a license and take continuing education beyond Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act) requirements.
Danny Yen, owner of Carlsbad, Calif.-based course provider Real Estate Educational Services, is facing administrative enforcement actions for both providing false certificates and taking courses on behalf of mortgage loan originators through other education providers in violation of the SAFE Act.
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