An increasing number of financial institutions are under scrutiny as state and local authorities investigate their lending practices.The Mortgage Specialists Inc. of New Hampshire, with offices in Peabody and Worchester, received a temporary cease and desist order from the Massachusetts Division of Banks.
The Boston Business Journal reports here that the company cannot issue any new loans and must place all existing loans with a qualified lender or broker.
The Division of Banks became aware that the company was engaging in questionable practices by exaggerating borrowers’ income and fabricating documents in order to generate more loans.
The Mortgage Specialists became a household name around New England once Tim Wakefield, starting pitcher for the Boston Red Sox, endorsed the company.
A period of 20 days has been granted for the company to request a hearing. If they do not, the cease and desist order becomes permanent.
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