August 22nd, 2022 by MG
Earlier we posted that First Magnus had announced it would be going into Chapter 11 bankruptcy. While that may seem common nowadays, if you dig a little deeper to find out why they’re losing their banker license, you may be disgusted.
Magnus’ Mortgage Banker License Suspended By The Arizona Department of Financial Institutions
The Arizona Department of Financial Institutions (the “Department”) hereby finds that First Magnus Financial Corp. … have violated the provisions of the Arizona Revised Statutes (“A.R.S.”), Title 6 … Therefore, it is ordered to summarily suspend the Arizona mortgage banker licenses … This suspension is effective immediately.
But Why Was Their Banker License Suspended?
Great Southwest Mortgage, the retail arm of Magnus, hit hard for some of the following:
- Failed to conduct the minimum elements of reasonable employee investigations before hiring employees
- Failed to fully comply with the disclosure requirements of Title I of the Consumer Credit Protection Act
- Allowed borrowers to sign regulated documents containing blank spaces
- Originated and closed mortgage loans from two unlicensed locations
- Used unlawful appraisal disclosures
- A branch manager made false promises and misrepresentations or concealed an essential or material fact in the course of the mortgage banker business
Now think about those people you know who may be upside down on their houses and in a bind now that they can’t sell. Do you still think it was all their fault for buying into the dream these lenders sold them?
Looks to me like another case of billionaires and loans poor people can’t afford.
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