The Terre Haute TribStar has a brief article entitled Indiana Secretary of State takes action against local mortgage lender. I surprised to find out that the Secretary of State has a role in mortgage practices. Seems more like a problem for the Attorney General or the Department of Financial Institutions.
According to the report:
The Indiana Secretary of State’s office filed an official complaint today alleging fraudulent practices at a Terre Haute-based mortgage lending company, Affordable Lending on Wabash Avenue.
From the report, it looks like a couple of property owners and a title company called Hoosier Title were in on the scheme that involved at least 23 properties and loans worth $1.4 million.
Update The Indianapolis Star has an article here.
With respect to the Sec’y of States involvement:
The agency filed an administrative complaint Tuesday against two Terre Haute-area firms used by two investors whom the secretary of state claims falsified loan applications to borrow $1.4 million.
. . .
Filing an administrative complaint amounts to a recommendation that the state revoke the licenses of specific loan originators and brokers at Extreme, and bar them from doing business as loan brokers in Indiana.
It also asks that Hoosier Title, Burnett, Sommerville and Extreme, which does business as Affordable Lending, be ordered to repay mortgage banks the $1.4 million plus 8 percent interest.
The next step will be a hearing before the state’s securities division, which can revoke licenses and order the restitution payments. Its decision can be appealed to Marion Superior Court in Indianapolis.
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