Connecticut authorities recently revoked the lending license of Woodbridge Mortgage, a mortgage brokerage located in Glastonbury, along with the licenses of two of its leaders, Lionel Kim and George Guorang Wang. This action was taken following allegations of serious infractions that breached state statutes and the federal Truth in Lending Act.
The state’s banking commissioner, Jorge Perez, made the decision to revoke Woodbridge Mortgage’s license, officially concluding the legal case against the company, Kim, and Wang. The alleged violations included engaging in unfair or deceptive business practices, failure to maintain thorough loan files and accurate mortgage call reports, and making false or misleading statements.
Lionel Kim, who served as the president of Woodbridge Mortgage, had been licensed to lend in Connecticut since 2014, while George Guorang Wang obtained his originations license in 2011. Woodbridge started its operations as a licensed mortgage broker in late 2000. Despite the severity of the allegations, Woodbridge agreed to a consent order without admitting or denying any wrongdoing. This consent order means that Woodbridge will no longer be able to issue mortgage loans, and both Kim and Wang are prohibited from acting as mortgage originators.
The state officials highlighted several specific allegations against Woodbridge. Among them was the failure to maintain a minimum capital net worth of at least $50,000, a requirement for being a licensed mortgage broker. Additionally, Kim was accused of making statements that were materially false or misleading at the time they were made.
An examination by Connecticut’s banking division revealed that Woodbridge Mortgage engaged in unfair practices by accepting compensation from rebate checks in at least seven instances without disclosure in the closing documents. The brokerage also failed to maintain complete loan documents for at least 27 transactions. Furthermore, Woodbridge did not file the necessary call reports on the Nationwide Multistate Licensing System, nor did it provide maintenance records of adverse action or withdrawn applications as required by law.
Additional violations included the absence of unique NMLS identification numbers on business cards for Kim and Wang, and misleading claims made to borrowers regarding rates and financing terms. Woodbridge was also found to have requested consumers to submit verification documents before issuing loan estimates.
A civil penalty of $100,000 was imposed on Woodbridge Mortgage but was stayed for three years following the agreement to the consent order. Lionel Kim and George Guorang Wang also faced civil penalties of $25,000 each, with a stay granted to Kim due to financial hardship.
This situation highlights the importance of adherence to financial regulations and ethical standards within the mortgage industry to ensure consumer protection and maintain trust in the system.