The Nebraska Department of Banking and Finance has levied a penalty against an Iowa firm for disregarding orders to halt its operations in the neighboring State. Mike Cameron, legal counsel for the agency, says Probity National Mortgage Corporation is based in West Des Moines.
Cameron says Probity held a license to operate as a mortgage company in Nebraska, as well as in Iowa. The state had a problem its operation because it loaned money under several different names. He explains a customer wouldn’t know they were borrowing from Probity, because they’d see some other name on their papers. Nebraska decided to change its rules to require a business to use only one name, so consumers can tell who they’re actually doing business with. The company was informed last year it could use only one name doing business in Nebraska.
In March of 2005 the company turned in a renewal form listing only one name, Probity. In the meantime the state informed Probity it was going to be fined over some other violations, but never responded to the notice. Cameron says the company’s surety bond was canceled apparently because the company hadn’t paid premiums. As a result of that, Nebraska canceled the company’s license to do business in that state. But regulators discovered that Probity’s website was still offering mortgage loans to customers in Nebraska. The NDBF counsel isn’t sure what the next step will be.
Cameron says there’s been a hearing and the state of Nebraska banking department’s fined Probity a “significant amount of Money,” (a fine of 227-thousand-500 dollars) for the violations and will explore options for how to collect the fines. Cameron says consumers can call the state banking and finance office to find out of a potential lender’s properly license and if there have been complaints about that business.