Friday, Dec. 31, 2010 | 4:42 p.m.
CARSON CITY – A $200,000 fine is to be assessed against a mortgage broker in Henderson for multiple violations uncovered in an audit by the state Division of Mortgage Lending.
The division posted the settlement on its website with CM Capital Services, formerly called Consolidated Mortgage Company. The company and the state say they want to resolve the problems without filing a formal complaint and going to a hearing.
A regularly scheduled audit was started in January 2009 and it included several prior complaints against the company.
Under the terms of the settlement dated Dec. 30, the company agrees to make certain changes to avoid possible future violations of the law.
CM Capital agrees to refrain from making any mortgage loans that are not fully funded at the time of disbursement of the loan proceeds to the debtor. CM Capital also won't release money out of a construction control account unless it has the written consent of the debtor.
The proposed settlement says CM Capital “shall not utilize a fact sheet or other material that advertises or solicits for investments that contain any materially inaccurate or misleading information…”
In advertisements to potential directors, the company must disclose its full name, address and telephone number, and the firm must promptly respond to investor telephone calls and written requests.
When the settlement is signed, CM Capital must offer to resign as manager of every limited liability company that owns properties taken back from debtors through foreclosure or a deed in lieu of foreclosure.
The agreement says CM Capital must not intentionally interfere with any vote taken by the remaining members of the limited liability company in the selection of a new manager.
The company was first registered with the state in 1977 and later licensed by the division as a mortgage broker. The settlement also calls for the firm to pay the division $10,065 to cover the cost of the investigation and $4,935 for attorney fees.
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