False Claims Activity is heating up.

NASHVILLE, Tenn. – March 22, 2021 – Laziza Abdullaeva and Aziz Ashurov of Mt. Juliet, Tennessee, agreed to pay $200,000 to settle False Claims Act allegations involving misrepresentations in their purchases of certain properties from the U.S. Department of Housing & Urban Development (HUD), Mary Jane Stewart, Acting U.S. Attorney for the Middle District of Tennessee, announced today. 

On December 30, 2019, relators William Worrall and Jim Gregory filed a qui tam action against Ms. Abdullaeva, Mr. Ashurov and their investment company, Capital Invest, LLC, in the United States District Court for the Middle District of Tennessee. 

Relators alleged that Abdullaeva and Ashurov made false statements that they intended to occupy certain properties they purchased from HUD as a primary residence, but instead resold the properties for a profit and were presently renovating one such property purchased in East Nashville presumably for resale.

The loan originators were also investigated.

Don’t fall for this, the game has changed.

Nelson A. Locke, Esq.

(800) 656-4584

www.lockelaw.us

Washington DFI and Contract Loan Processors – here are the DFI rules in a snapshot…….

  1. You will not have to be licensed with DFI under the following scenarios:
    1. You are a W2 employee Loan Processor for a licensed mortgage broker(s). Generally, you must work from a licensed location (main or branch office). See WAC 208-660-300(14)(link is external) for more information.
    2. You are a W2 employee Loan Processor for a loan processing company that has a mortgage broker license. Generally, you must work from a licensed location. See WAC 208-660-300(14)(link is external) for more information.
  2. You must have a license with DFI under the following scenarios:
    1. You must have a loan originator license if you work as an independent contractor Loan Processor (receive a 1099) for a licensed mortgage broker. You must work from a licensed location under the mortgage broker license.
    2. You must have a loan originator license if you work as an independent contractor Loan Processor (receive a 1099) for a loan processing company. You must work from a licensed location under the loan processing company’s mortgage broker license.
    3. You must have a mortgage broker license if you own a processing company that independently contracts (receives a 1099) with licensed mortgage brokers to process loans. Your W2 employees and independent contractors (1099 paid workers) must work from a licensed location. Your independent contractors must be licensed as loan originators.

If you have any questions, give us a call at (800) 656-4584.

Nelson A.Locke, Esq

http://www.lockelaw.us

Regarding that “announcement” today….

Consider United States Antitrust Law

In the United States, antitrust law is a collection of federal and state government laws that regulate the conduct and organization of business corporations and are generally intended to promote competition for the benefit of consumers. The main statutes are the Sherman Act of 1890, the Clayton Act of 1914 and the Federal Trade Commission Act of 1914. These Acts serve three major functions. First, Section 1 of the Sherman Act prohibits price-fixing and the operation of cartels, and prohibits other collusive practices that unreasonably restrain trade. Second, Section 7 of the Clayton Act restricts the mergers and acquisitions of organizations that would likely substantially lessen competition. Third, Section 2 of the Sherman Act prohibits the abuse of monopoly power.

Now, think about Dodd-Frank and the CFPB. And “the rule of unintended consequences”.

Can there be such a thing as negative steering? There is such a thing as the negative commerce clause. If competitors are squeezed out, who gets the loans?

Maybe the most prudent thing for all of us to do, is sit back and watch for a few days.

Don’t act too fast. Rest and Digest.

Nelson A. Locke, Esq

(800) 656-4584

New 1003 now in effect!

Redesigned Form 1003 now required

URLA timeline

Effective March 1, 2021, lenders and brokers must use the redesigned Form 1003 and DU MISMO v3.4 file for all new loan applications. Applications started prior to March 1 can remain in their original DU format and form version.

Some of you have commented that your loan origination system was not prepared. That could be an issue, but if the file was started prior to 3/1/21, your loan origination system should have a workaround for their oversight.

You might want to have some old fashioned manual “new” 1003s around until this settles itself down a bit. Otherwise, data fields won’t match.

Respectfully,

Nelson A. Locke, Esq.

Compliance Services

(800) 656-4584