Connecticut has pulled the license of a correspondent lender which was previously reprimanded in the state for using unlicensed mortgage loan originators.
Central Mortgage Funding last week agreed to pay a $50,000 fine as part of a
The Michigan-based company's correspondent license was revoked and won't be renewed, and its application to originate loans in Connecticut was also withdrawn. Owner Kevin Kajy, who signed both consent orders, also agreed to surrender his state license.
Kajy didn't return a request for comment Tuesday. In agreeing to the enforcement, CMF and Kajy did not admit nor deny the allegations.
The company has 47 sponsored MLOs, three active branches and is licensed in 38 states, according to Nationwide Multistate Licensing System records.
CMF, according to the April consent order, used seven unlicensed mortgage staff between March 2022 and January 2024. It operated in the state without a license and failed to maintain records of loan transactions. The state ordered the lender to pay a $75,000 civil penalty and $4,100 for back-licensing fees.
The order also required CMF hire a chief compliance officer, train employees to comply with lending laws and implement policies to ensure their compliance. The banking commissioner in a subsequent investigation found CMF failed to follow the stipulations.
The lender also made false or misleading statements in the April order in disclosing two applications in January rather than 12, and continued to advertise loan products in Connecticut until August. It also filed inaccurate mortgage call reports for the first quarter with the NMLS, and failed to disclose with the registry a
It's the second time the state regulator has punished a lender in recent months, after it
