The Arizona Department of Financial Institutions has filed a complaint against Home One Mortgage Services, or SJJ Corp.
Allegations include failing to disclose or calculate the right interest rates and fees on more than 100 loans; letting Residential Asset Management, among other groups, use its license to process mortgages; and making false promises or concealing important facts on more than 200 loans.
A hearing had been set for Home One Mortgage, led by Steve Smith, on Friday, but it has been continued.
Home One's attorney Phillip Glasscock said the mortgage firm intends to fight the allegations and that the loans referenced in the regulator's complaint are a small portion of the company's business.
The state agency doesn't comment on pending investigations.
At the end of February, regulators shut down Mesa-based Eagle First Mortgage and its more than 75 Valley branches, citing illegal lending practices.
The Arizona Department of Financial Institutions pulled the license of the mortgage firm and its broker, David Sanchez, after finding more than 100 illegal money transactions, loan activities and hiring practices.
Escrow agent charged
Former escrow agent Anna Solis and her husband, Oscar Martinez Solis, have been charged with conspiracy, fraud and theft by the Arizona Attorney General's Office.Last month, the Department of Financial Institutions banned Anna Solis from working in the escrow and mortgage industries based on an investigation by the state agency that showed she diverted more than $500,000 out of almost 50 Valley home sales between 2005 and mid-2006.
License renewal
Arizona real estate licenses will now be renewed every four years instead of every two.Legislation was passed that allows the longer licensing period for real estate agents. It goes into effect in July.
It definitely sounds like less regulation, but some real estate watchdogs think it will give the Department of Real Estate more time to follow up on complaints.
Reach the reporter at catherine.reagor@arizonarepublic.com or read her blog at reagorblog. azcentral.com.
Source: http://www.azcentral.com/arizonarepublic/business/articles/0520biz-catherine0520.html