Friday, May 13, 2005 | 9:27 a.m.
Nevada mortgage regulators have issued a cease-and-desist order and imposed a $110,000 fine against mortgage agent Kyle H. Pulsipher, alleging that he obtained fraudulent loans for himself and family members.
The state Mortgage Lending Division said in a statement that Pulsipher used "false and misleading income and employment information on 11 loan applications for Las Vegas-area properties."
The order, which revokes Pulsipher's mortgage agent license, also alleges that several of the loan documents he submitted included forged signatures.
With the order, Pulsipher has 20 days to request a hearing. Las Vegas attorney Richard Schonfeld, who is representing Pulsipher, said he will request a hearing and "give my client the due process he deserves."
The order said that Pulsipher was licensed with USA Homes Loans Inc. on July 20, 2004. On Sept. 6, 2004, "USA Home Loans Inc. filed a termination form for Pulsipher," the order said.
"On or about October 10, 2004, the division records show that Pulsipher became licensed with Soma Financial," the order continued. "The division records show that Soma terminated Pulsipher as a mortgage agent licensed under the broker on January 4, 2005."
The order said that Pulsipher's license is currently inactive.
Had the information in the loan applications been correct, the loans could have been denied, the order said.
Additionally, it is alleged that Pulsipher "and or family members are listed as officers or members of ... companies which provided employment verifications or received proceeds from the fraudulent loans."
Those companies listed in the order include Sub Level Development Corp., Six Sigma LLC, PBL Rock and CKP.
The order also said that "many of the loan applications fraudulently state that the property would be owner occupied."
"I think that people don't understand how big fraud in the mortgage business is, especially in Nevada," said Scott Bice, commissioner of the state Mortgage Lending Division. "It's still the wild West out here."
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