A Michigan mortgage lender paid a $50,000 fine to the Connecticut Department of Banking and has agreed to stop doing business in the state after breaking state lending laws.
In addition, the Central Mortgage Funding’s owner Kevin Kajy was forced to surrender his Connecticut mortgage lending license and the company’s state mortgage correspondent lender license.
The penalties were announced by the Department of Banking earlier this week.
Central Mortgage Funding was accused of failing to put an “effective” compliance management system in place and provide training to employees on Connecticut lending laws and rules. In addition, state regulators said the company lied about being subject to a class-action lawsuit in paperwork filed with the state.
To settle these charges, Central Mortgage Funding agreed to a consent order with the Department of Banking in April 2024. But, regulators say, the company misreported the number of loans it did in Connecticut and falsely claimed it had stopped doing business in the state in January when it took until the following month for the company to withdraw active mortgage loan applications and until August to stop advertising in the state.