Securities Department settles with mortgage lenders on continuing education
by January 25, 2022 7:51 am 409 views
The Arkansas Securities Department and financial regulatory agencies from 42 states reached settlements with 441 mortgage loan originators nationwide, the state agency announced Monday (Jan. 24).
According to ASD, the mortgage loan originators deceptively claimed to have completed annual continuing education as required under state and federal law, but did not.
“We have over 9,000 mortgage loan originators licensed in Arkansas who are responsible for guiding consumers through the single largest financial transaction in their lifetime, and the actions of these individuals had the potential to harm their clients, the public and the mortgage industry as a whole,” ASD Commissioner Eric Munson said.
“Public trust in the mortgage industry is essential and this settlement shows our commitment to holding licensees accountable and protecting Arkansas consumers,” he added.
Through the settlements, the mortgage loan originators agreed to surrender their licenses for a period of three months, pay a fine of $1,000 for each state in which he or she holds a license, and take continuing education beyond Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act) requirements.
“In Arkansas, consumers can be assured that their mortgages are being handled by loan originators who follow the law and are up to date in their education requirements,” Munson said.
The irregular education activity was discovered through a gesture-driven authentication tool called BioSig-ID, which is used to monitor all online courses approved under the SAFE Act mandate.