Mortgage Lenders Network has been ordered by the Connecticut State Department of Housing to stop all its lending activities. It has suspended the lending license of the mortgage firm. Mortgage Lenders Network that holds itself as the nation's top sub prime lending firm, is currently facing an investigation for not providing loans to the people with poor credit. The firm is also facing similar charges in other states of US.
Reacting to these charges, the firm has categorically agreed with the State government that it will stop all its lending activities in Connecticut till it is clear of all the charges. James Heckman, spokesperson of the banking department, has clarified the press that this suspension makes the agreement with the company legal.
Christopher Capot, spokesperson of Mortgage Lenders Network, refused to make any statement on behalf of his company. The company, if found guilty, would have to shell out a large amount in the form of fines that would have been imposed by various state governments. According to the company, increase in the number of defaulters and unsteady nature of the real estate market have been the prime reasons for the situation.
Mortgage Lenders, a privately owned firm, claims that its portfolio amounts to around $ 17.8 billion. The charges that have been placed on the firm by the Connecticut state include delay in the issuance of loan to the lenders, imposing high prepaid finance charges more than the legal limit and keeping the customers in darkness without providing them the relevant information. The other states that have charged Mortgage Lenders are Massachusetts, Rhode Island, Michigan, Maine, Vermont, New Hampshire and Pennsylvania.