Department Orders Lender Purchasing and Holding Loans Without a License to Cease and Desist

October 27, 2016

Atlanta, Georgia — On October 27, 2016, the Order to Cease and Desist issued by the Georgia Department of Banking and Finance (“Department”) against NYI Finance, LLC, P.O. Box 1645, Medina, OH 44258, became final.

The Order to Cease and Desist was issued by the Department after it obtained evidence that NYI Finance, LLC engaged in residential mortgage lending activities without a license or under an applicable exemption in violation of O.C.G.A. § 7-1-1002.

Georgia law prohibits any person from directly or indirectly holding and/or purchasing mortgage loans without a mortgage license or pursuant to an exemption from licensure, including O.C.G.A. § 7-1-1001(15).

It is also prohibited for any person to knowingly purchase, sell, or transfer a mortgage loan or loan application from or to an entity that is not licensed or exempt from licensing or registration provisions.

Contact
Rod Carnes
Deputy Commissioner for Non-Depository Financial Institutions
Phone: (770) 986-1371
E-mail: rodc@dbf.state.ga.us

 

The Department is the state agency that regulates and examines Georgia state-chartered banks, state-chartered credit unions, and state-chartered trust companies. The Department also has responsibility for the supervision, regulation, and examination of Merchant Acquirer Limited Purpose Banks (MALPBs) chartered in Georgia.  In addition, the Department has regulatory and/or licensing authority over mortgage brokers, lenders and processors, mortgage loan originators, check cashers, sellers of payment instruments, money transmitters, international banking organizations, and bank holding companies conducting business in Georgia.

Related Files: 
AttachmentSize
NYI Finance, LLC - Final Order73.19 KB