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Assignment Question:
Moral Turpitude
A licensed mortgage
loan originator in Kentucky and also in Indiana originates a loan in Kentucky that
gets him in to trouble by the Kentucky DFI because he was caught committing
loan fraud by altering a document to get the customer qualified. This is a felony and the MLO plead “nolo
contendere” (no contest) to the charge in Kentucky and is convicted.
What happens to the MLO’s Indiana license? Why do you think the way you do, provide any section of the law that led you to your decision if applicable?
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A licensed mortgage loan originator in Kentucky also licensed in Indiana plead to a felony for committing loan fraud by altering a document to get the customer qualified. The loan officer needs to disclose the felony to the state of indiana. (Self report).
ReplyDeleteBecause he pleaded no contest his Indiana license is subject or revocation as well. The states work in conjunction with the national registry and transfer information.
ReplyDeleteAccording to the Housing and Economic Recover Act an MLO should no obtain any type of felony, especially one involving dishonesty. The originator should report it resulting in the loss of the Indiana license as well.
ReplyDeleteThe MLO needs to report this felony to the state of Indiana.
ReplyDeleteThe MLO's Indiana license will be revoked due to the Housing and Economic Recovery Act of 2008.
The MLO would need to notify the State of Indiana about their Conviction and forfeit their License to the State Secretary. This felony is a violation of ethics which is disqualifying in the state of Indiana.
ReplyDeleteDavid DeWeerdt
ReplyDeleteHe plead no contest, so his Indiana and license overall are in jeopardy or shouldn't be approved in my opinion.
Joseph Teske
ReplyDeleteDo to the plea in KY, his Indiana license will also effected, eventually. It's in his and his institutions best interest to report it as soon as possible.