The Georgia Department of Banking & Finance has banned and fined two lenders from operating in the state after discovering they were employing convicted felons to do business in the state.
Huntsville, Ala.-based Hometown Lenders and Cerritos, Calif.-based Sun West Mortgage Co. will surrender their Georgia mortgage lending licenses and pay $24,000 and $45,500 in fines, respectively. According to the Georgia Department of Banking and Finance, Sun West hired nine convicted felons, which is prohibited in Georgia. Hometown Lenders employed two felons and did business with an unlicensed mortgage processing company.
The state is allowing Hometown Lenders to close or complete work on all loans that were originated by Sept. 12 and received a funding commitment by Sept. 16 as long as the loans are completed or closed by Oct. 14. While Sun West has permanently been banned from doing business in the state, Hometown Lenders has the opportunity to reapply for a license in five years.