Las Vegas, NV -
January 18, 2013Disciplinary
action imposed by Mortgage Lending Division Commissioner Jim Westrin against
two entities and associated individuals offering unlicensed mortgage modification
services was recently upheld during separate appeal hearings. The appeals were filed with the Division
after the Commissioner issued orders to the parties to cease and desist, make
restitution, pay an administrative fine and reimburse costs of the
investigations and proceedings.
EZ
Debt Solutions, LLC and Jose Avila appeared before the hearing officer on
appeal of charges that he committed violations of state law by engaging in
activities as a covered service provider without first obtaining the proper
licensing from the Mortgage Lending Division.
Mr. Avila was found to have provided loan modifications services for a
fee without obtaining the necessary license.
On August 21, 2012, the Commissioner issued a Cease and Desist Order and
ordered restitution of $3,000 to the victim, an administrative fine of $25,000
and reimbursement of the cost of the investigation and attorney’s fees. The hearing officer upheld the Commissioner’s
Order.
David
and Minerva Young of My State Processing requested a hearing on appeal but did
not appear. Multiple complaints made to
the Division prompted an investigation which found that Mr. and Mrs. Young
offered to provide loan modification services, solicited homeowners using
inaccurate representations of fact and collected “up-front” fees. The Youngs engaged in this activity without
obtaining a license, a violation of NRS 645. On May 3, 2012, the Commissioner
issued a Cease and Desist Order and ordered restitution to 6 known victims
totaling $13,875, an administrative fine of $50,000 and reimbursement of the
cost of the investigation and attorney’s fees.
They were also ordered to file a report with the Division to identify
other potential victims. The hearing officer upheld the Commissioner’s Order.
A
copy of the orders can be obtained by accessing the Division’s website at www.mld.nv.gov and clicking on the link to
“Administrative Actions.”
“Companies that prey on distressed
homeowners will not be tolerated in Nevada,” said Mortgage
Lending Commissioner Jim Westrin. “The Division will act swiftly and firmly to
ensure that these bad actors are shut down.”
Westrin continued, “Consumers
are cautioned to verify that any business offering to assist them with their
mortgage is properly licensed and should beware of any business that promises a
desired result or charges any advance fees.”
Homeowners
who may have been victimized by EZ Debt Solutions, Jose Avila, My State
Processing or the Youngs – or those with a complaint about another mortgage
loan modification business – are encouraged to call the Division at (702)
486-0782 to file a complaint.
These
appeal proceedings are the first hearings conducted at the Mortgage Lending
Division under a pilot initiative launched by the Department of Business and
Industry in July 2012. The initiative,
funded by a state settlement agreement, provides dedicated Administrative Law
Judges or Hearing Officers to provide timely and
independent adjudication of regulatory administrative actions and other dispute
resolution proceedings in the areas of real estate, mortgage and financial
institutions.
Hearing Officers are assigned cases from three agencies: Mortgage
Lending Division, Real Estate Division or Financial Institutions Division. This limited assignment allows for a better
understanding of relevant statutes and regulations in the matters before
them. It also provides for a more timely
resolution of cases with decisions being issued within 30 days of the
hearing.
“We are hopeful that this
pilot initiative will continue, and at some point become a permanent resource
for our Divisions.” said Business and Industry Deputy Director Shannon
Chambers. “In addition to being able to
decide these types of cases in a more timely manner, it provides a greater and more immediate opportunity for victims to
receive restitution.”
About the Department of Business &
Industry
The Nevada Department
of Business & Industry is a cabinet level agency in Nevada State
government. The mission of the Department is to protect consumers and promote
commerce. Our objective is to encourage and promote business
development and growth, and to ensure the legal operation of business in order
to protect consumers. These objectives are carried out through maintaining
a fair and competitive regulatory environment and eliminating unnecessary and
burdensome regulations when possible. In addition, Business and Industry is
committed to providing leadership for small businesses in the areas of
advocacy, navigating state government, access to capital and training.
About the
Mortgage Lending Division
The Division is authorized to enforce the
statutes and regulations pertaining to Mortgage Bankers, Mortgage Brokers,
Mortgage Agents, Escrow Agencies, Escrow Agents and Loan Modification
Consultants, Foreclosure Consultants and other persons who provide similar
services. The mission of the Division of
Mortgage Lending (MLD) is to promote professionalism, education and ethics in
the mortgage lending, escrow, loan modification and foreclosure consultant
industries through fair regulation and coordination with industry and consumer
groups in addition to providing consumers with a fair and balanced complaint
resolution process.
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