Michigan-based lender Central Mortgage Funding has been fined $50,000 by the Connecticut Department of Banking and managing member Kevin Kajy has been forced to surrender his loan originator license in the state, after the company violated Connecticut lending statutes.
Central Mortgage Funding began lending in Connecticut in March 2022, doing business as Supreme Team Lending, but in April 2023 the banking department began an investigation into the company over allegations it used unlicensed loan originators and failed to maintain proper records.
The department issued a consent order in April 2024, fining the company $75,000 and ordering it to cease lending in the state until it was in compliance with all laws and regulations.
But in a new consent order issued in late December, Banking Commissioner Jorge Perez says the company failed to provide required training for its agents, and didn’t implement an effective compliance management system or retain a full-time chief compliance officer as required by the April agreement.
The department also says the lender failed to disclose class action litigation against it, and filed inaccurate mortgage call reports.
The department says Central Mortgage Funding has now ceased lending in the state and its Connecticut license has been revoked.
