The New York Department of Financial Services issued an order to The Funding Source LLC, a Syracuse mortgage banker, demanding that it temporarily suspend operations, according to the Syracuse Post-Standard. The order cited four reasons for the suspension:
- The Funding Source’s $1 million line of credit expired March 15, and it has not provided evidence of a new one;
- The company’s surety bond also expired earlier in March and hasn’t been replaced;
- The company vacated its office without notifying state regulators; and
- The company didn’t bother New York regulators that North Carolina had revoked its license in January.
North Carolina’s banking commissioner terminated The Funding Source’s license in January after reviewing the company’s actions between December 2010, when it was licensed in the state, and October of 2012, the Post-Standard reported. The investigating commission concluded that the company “demonstrated a lack of control and supervision and financial responsibility, character and general fitness for licensure,” although it did not address specific reasons for reaching that decision.
The New York suspension is mostly a symbolic act, since the company is already dead for all intents and purposes. It moved out of its Syracuse offices in December and was officially evicted in January after failing to pay more than $16,000 in rent.
The Funding Source has also been under investigation by the federal government, according to the Post-Standard. It received a Justice Department subpoena last year and a former employee said he was interviewed by the FBI. No charges have been filed so far.
New York financial regulators have suspended the license of a mortgage banker that has been under state and federal scrutiny. That won’t have a lot of impact on business, since the company shut its doors three months ago.