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News Release

New Jersey Department of
Banking and Insurance


Commissioner Steven M. Goldman

For Immediate Release:
April 25, 2007

For Further Information:
Jim Gardner (609) 292-5064


DOBI action targets NJ mortgage firm for unlicensed lenders, improper fees

TRENTON – Following the discovery of nearly 400 violations by examiners, Department of Banking and Insurance Commissioner Steven M. Goldman signed legal orders prohibiting mortgage lender Dana Capital Group, Inc., from doing business at unlicensed facilities, from taking mortgage applications from unlicensed solicitors, and from charging inappropriate fees.  

The DOBI order requires Dana Capital to properly license all solicitors and offices, and refund all inappropriate fees. In addition, the company is asked to present evidence as to why the company’s New Jersey license should not be revoked, and to pay fines for the alleged violations.

The company, based in Irvine, Calif., lists Jersey City as its New Jersey address. The company also does business as Loantiger.com.

“The mortgage industry nationwide has certainly faced substantial challenges in recent months, and even though these violations may not be directly related to the most recent disruptions in the subprime lending market, they pose an equal threat to the state’s consumers,” Goldman said. “We cannot allow unlicensed lenders to operate in the state, and we certainly cannot tolerate the charging of unjustified fees.”

The order alleges that Dana Capital:

  • Failed to obtain licenses for five branch offices (Red Bank, Butler, Mahwah, Palisade Parks, and Newark);
  • Failed to license 58 other retail offices;
  • Accepted loan applications at 59 unlicensed offices;
  • Utilized the services of 92 unregistered loan solicitors;
  • Allowed 73 individuals to accept mortgage loan applications prior to being registered;
  • Charged a $995 “commitment fee” from at least 26 individuals without disclosing the fee;
  • Collected a $995 “warehouse fee” from at least 11 individuals, when the charge did not reflect the actual cost associated with the loan;
  • Collected at least 26 application fees and 28 discount points from consumers without providing borrowers with a separate service agreement disclosure;
  • Charged other fees to borrowers that are not permitted by New Jersey law.

Goldman advises consumers who are considering a mortgage loan involving Dana Capital to ask if the branch office involved is licensed with DOBI and to ask if anyone acting as a mortgage solicitor, loan officer, or loan originator for this company is registered with the department. Consumers are also advised to demand an explanation of all fees charged in connection with their mortgage loan.

For additional information or to determine if a mortgage provider is properly licensed, consumers are urged to visit the DOBI Web site at www.njdobi.org. Individuals with questions regarding a recent transaction with Dana Capital may call the DOBI Consumer Hotline at (609) 292-7272.

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More information for consumers... More information for mortgage brokers...

 
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