Regulators have revoked the licenses of a Glastonbury mortgage firm and its two executives after finding violations of state and federal laws.
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Connecticut banking regulators have revoked the licenses of a Glastonbury mortgage firm and its two executives after finding violations of state lending statutes and federal consumer protection laws.
In a consent order dated Sept. 15, the Connecticut Department of Banking said Woodbridge Mortgage LLC, along with President Lionel Y. Kim and loan originator George Guorong Wang, surrendered their licenses and accepted penalties. The order followed an April 9 notice of intent to revoke the firm’s license and issue cease-and-desist orders, based on findings from the agency’s Consumer Credit Division.
Regulators said Woodbridge failed to meet the minimum $50,000 tangible net worth required of mortgage brokers. Kim allegedly failed to disclose outstanding liens on his renewal applications, while Wang failed to disclose other business activities on his.
Regulators said Woodbridge issued undisclosed rebate checks to borrowers, failed to maintain complete loan files in at least 27 transactions, and posted misleading claims on its website suggesting it made loans in Connecticut when it was only licensed as a broker, among other issues.
Under the consent order, Woodbridge was assessed a $100,000 penalty and Kim a $25,000 penalty, both suspended for three years if they comply with the terms. After that period, the penalties will be vacated unless the Department of Banking decides otherwise. Wang must pay a $25,000 fine.
The company and its principals neither admitted nor denied the allegations, but agreed to the settlement to avoid further administrative proceedings, according to the consent order. Banking Commissioner Jorge L. Perez signed the order, which warns that noncompliance could trigger reinstated penalties or additional enforcement actions.
