NewDay Financial has surrendered its New York State license as part of an agreement with the New York Department of Financial Services, as the fallout continues from its exam-cheating scandal.
The New York regulator also levied a $1 million fine against NewDay, a subsidiary of Chrysalis Holdings. The punishments follow a state investigation into the alleged scheme among NewDay employees, including company executives and senior managers, to cheat on state-required continuing education courses and exams in violation of New York law.
"NewDay employees — including senior managers — participated in a widespread, extensive cheating scheme that casts serious doubt on the integrity of the company," Acting Superintendent of Financial Services Anthony Albanese said in a written statement Thursday. "The type of dishonest conduct uncovered in this case is simply unacceptable and will not be tolerated in New York."
NewDay said in a written statement that "the vast majority of issues raised by the NYDFS" were addressed and resolved through its agreement with the Multi-State Mortgage Committee.
"Unfortunately, New York regulators have chosen to self-select certain historical issues rather than recognize the efforts made by the company to improve our operations," the company continued.
NewDay
The department, during its own investigation of NewDay, also reportedly found other compliance failures, including improper issuance of subprime home loans, misrepresentation of loan terms, failures to provide discount points notification and to maintain minimum line of credit, and the submission of a false Volume of Operations Report.
NYDFS also pointed to
