TRENTON, NJ – July 29, 2010 – (RealEstateRama) — New Jersey Department of Banking and Insurance (DOBI) Commissioner Tom Considine today alerted consumers that he has ordered Hawthorne Capital Corp. to stop doing business in the state and began the process of revoking the company’s mortgage lending license. He further urged consumers to contact the department if they are currently having difficulties with mortgages held by the Manalapan firm.
The cease and desist order was filed against the Monmouth County-based mortgage lender following actions by DOBI and the Monmouth County Prosecutor’s Office this week which jointly took action against the lender.
“Our main goals in this order are to help any New Jersey consumers who may have a mortgage application in the pipeline with Hawthorne Capital and to ensure that no further damage is done to the marketplace by these lenders,” said Considine.
“Regulators will respond forcefully against lenders who use consumers’ hard earned funds for their personal gain,” said Banking Division Director Garret Komjathy.
Hawthorne has offices in New Jersey, New York and Pennsylvania. Hawthorne closed 188 loans for more than $42 million last year. Under terms of the order, Hawthorne must cease operations in the state and ensure that New Jersey borrowers caught in the loan application process when it shuts down are not harmed and placed with viable alternate lenders.
In June, New Jersey DOBI entered into a separate consent order with Hawthorne that resulted in a $41,000 fine for violations found during an examination. Earlier this month, in cooperation with DOBI, the Monmouth County Prosecutor’s Office executed search and seizure warrants on Hawthorne offices and personnel and subsequently made arrests. Monmouth County and DOBI investigators had discovered a litany of unpaid mortgage settlements, closing payments returned for insufficient funds and a myriad of other violations. These irregularities led to more detailed scrutiny which resulted in the actions taken against the firm and its principals this month.
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