Pennsylvania Banking Department Announces Quarterly Report on Enforcement Actions

HARRISBURG, Pa., April 1 /PRNewswire-USNewswire/ -- The Department of Banking announced it took enforcement actions against 94 mortgage companies and an Internet payday lender during the first three months of the year.  

Enforcement highlights included:

• The department ordered 83 companies to obtain the required surety bond coverage for their loan originator employees within 30 days or face fines of up to $5,000 and suspension of their Pennsylvania licenses.  The bond can be used to reimburse consumers for losses suffered as a result of misconduct by a loan originator.  
• The department issued cease and desist orders against two unlicensed mortgage loan modification companies.  Any employees who negotiate loan modifications must also be licensed.
• The department entered into consent agreements with nine mortgage companies for unlicensed activity or making misstatements on forms to the department.
• The department issued a cease and desist order against an Internet payday lender after receiving complaints from Pennsylvania consumers who were charged interest and fees in excess of state law.

A comprehensive list of enforcement actions taken by the Department of Banking is available online at www.banking.state.pa.us. Consumers can file a complaint against any company regulated by the Department of Banking online or by calling 1-800-PA-BANKS.

Media contact: Ed Novak, 717-783-4721

SOURCE Pennsylvania Department of Banking