Connecticut banking regulators have recently taken decisive action against a Glastonbury mortgage firm, Woodbridge Mortgage LLC, by revoking its licenses, alongside penalizing its President Lionel Y. Kim and loan originator George Guorong Wang. This comes after violations of both state lending statutes and federal consumer protection laws were discovered. The revocation was formalized in a consent order dated September 15 by the Connecticut Department of Banking, following an initial notice of intent issued on April 9.
According to the findings by the agency’s Consumer Credit Division, several serious infractions were noted. Woodbridge Mortgage LLC failed to maintain the mandatory $50,000 tangible net worth required of mortgage brokers. Furthermore, significant omissions were found in the renewal applications of its executives: Lionel Y. Kim did not disclose outstanding liens, while George Guorong Wang neglected to disclose other business engagements. Additional violations included the issuance of undisclosed rebate checks to borrowers and failing to keep complete loan files in at least 27 transactions. Misleading online claims were also made, suggesting the company was making loans in Connecticut when it functioned solely as a broker.
As part of the consent order settlement, Woodbridge was issued a $100,000 fine, while Kim and Wang received penalties of $25,000 each. However, these fines are suspended for a period of three years, contingent on compliance with the order’s terms. Following this period, penalties may be vacated unless the Connecticut Department of Banking decides otherwise. While Woodbridge and its executives agreed to this settlement, they neither admitted nor denied wrongdoing, opting to avoid protracted administrative proceedings.
The order, signed by Banking Commissioner Jorge L. Perez, serves as a clear warning that failure to comply could result in reinstated penalties or further enforcement actions. This resolute action underscores the importance of adherence to regulatory standards in the mortgage industry, promoting fair practices and protecting consumer interests.