Glastonbury mortgage broker sanctioned by state Banking Department
Jorge Perez
A Glastonbury-based mortgage company has been accused of deceptive practices by the state Department of Banking. Banking Commissioner Jorge Perez has issued a notice to revoke the mortgage broker and mortgage loan originator licenses of Woodbridge Mortgage.
The department also issued a cease and desist order and intends to impose a civil penalty on the owners, Lionel Young Kim and George Guorong Wang.
The actions follow an investigation by the department’s Consumer Credit Division, which uncovered several alleged violations.
The commissioner alleges that Woodbridge received origination compensation based on the terms of mortgage transactions by issuing rebate checks for closing costs to at least seven Connecticut borrowers, without reflecting the rebates on the closing disclosures.
The company is also accused of failing to maintain complete loan files of at least 27 mortgage transactions. The files were missing copies of initial and final mortgage loan applications, income and asset verifications, loan estimates and closing disclosures.
The order also states that Woodbridge failed to file accurate mortgage call reports on the Nationwide Multistate Licensing System and Registry, and failed to maintain records of the adverse action notice for a mortgage loan.
Among other allegations, the department says that the company made a false statement on its website indicating that Woodbridge lends in Connecticut, when it is solely licensed in the state as a mortgage broker.
The respondents were offered an opportunity to request a hearing on the allegations.
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