N.C. revokes mortgage firm's license, levies fine

State banking regulators have shut down a mortgage lending network that slipped past state regulation for years by selling sham licenses to unlicensed brokers and charging illicit fees to homeowners. North American Real Estate Services operated out of Florida, Nevada and California under a variety of fictitious names and made home loans in North Carolina operating out of Durham, Wake Forest, Wilson and possibly elsewhere. In a nationwide scheme, NARES hired local salespeople who were not certified by the state to process home loans. The N.C. Commissioner of Banks fined the company and its officers $320,000 and ordered them to refund nearly $62,000 in illegal broker fees that had been paid by 13 borrowers in North Carolina. The amount and the list of customers could increase as other homeowners come forward. Posted in: Internal Fraud