The state of Nevada isn’t taking mortgage lending lightly these days. As one of the hardest hit states of the foreclosure crisis, Nevada residents have suffered a lot at the fate of the economy and poor lending practices. In efforts to stamp out further troubles with mortgage and foreclosure scams, the Nevada Division of Mortgage Lending has stepped up their policing efforts.
Cease and Desist
A Las Vegas company has been ordered to stop offering loan modifications and other foreclosure alternatives to homeowners. Why? Operating without a license, Mortgage Capital USA popped up on the radar of the state Division of Mortgage Lending as being potentially fraudulent. Although further investigation has revealed the company is offering legitimate services to struggling homeowners, the company is still not legally allowed to operate without a license. The company will be required to pay a $25,000 and obtain the appropriate license before resuming operations.
Why The Hassle?
Although no major wrongdoing or non-reputable operations were discovered at Mortgage Capital USA, operating without a license is still against the law. Further, many of the companies that have been found to be fraudulent or scams are avoiding federal regulations simply by not registering or obtaining a license. These days the Federal Trade Commission can’t be too careful and any company offering such volatile services are being heavily scrutinized for the consumer’s best interest.