State Cracks Down on Mortgage Fraud

Two mortgage brokers in Massachusetts were shut down over the weekend, and four more brokers affiliated with them were ordered to stop doing business as a result of operating without a license. The company was accused of grossly misrepresenting borrowers’ income as a means of obtaining a larger loan, as well as consciously concealing information that may have resulted in a loan denial. Four more men affiliated with the first office were forced to shut down after it was found that they were operating without a license.

The two companies, as well as nine others this year, were closed down as a result of operating without a license, or misrepresenting information on the loan applications. The shut downs occurred after a local Lawrence newspaper alleged that many companies in the area were committing some sort of fraud; more than 100 companies were contacted regarding the allegations. Eight companies in all have been shut down this year, with ten more being ordered to stop business while a further investigation continues.