State regulators on Wednesday revoked the mortgage broker's license of Las Vegas-based hard-money lender OneCap Mortgage Corp. because the company failed to abide by the terms of a previous settlement agreement.
The Nevada Mortgage Lending Division announced the revocation and a list of other enforcement actions in a statement.
As a hard-money lender, OneCap solicits money from individual investors and uses it for loans secured by real estate. Mortgage Lending Division Commissioner Joseph Waltuch in July allowed OneCap to service outstanding loans but prohibited it from originating new loans. In November, Waltuch ordered OneCap to stop all licensable activity but let the company keep its license.
In 2007, the Mortgage Lending Division and Financial Institutions Division fined OneCap for a long list of alleged violations, including origination of loans that weren't secured by real estate.
The mortgage division fined OneCap $85,000 and the financial division fined it $35,000. At the time, OneCap was managing about $400 million in real estate loans. Vince Hesser, who manages OneCap, told the Las Vegas Review-Journal in December that the total had dipped to about $200 million or $225 million. He counted about 1,000 investors in those loans.
The mortgage lending division also said it:
■ Fined former mortgage agent Charmaine A. Hicks $2,500 plus administrative costs for failing to cooperate in a division investigation.
■ Fined Henderson-based mortgage broker Evofi One $5,000, plus administrative costs for sharing office space with unaffiliated businesses.
■ Ordered Las Vegas-based The Sussex Group, an escrow agency, and its sole shareholder, Barry L. Fulco, to cease and desist operations after finding that the physical location the agency listed on its application didn't match the location provided to clients; after the business vacated a location without disclosing it to the division; and after the division failed to find a permanent office location for the business. The Sussex Group was ordered to provide a full accounting of all transactions and money held in trust and was fined $30,000, plus administrative costs.
■ Reached a stipulated settlement agreement with Las Vegas-based mortgage broker Pinnacle Lending Group because the company improperly compensated its mortgage agents. This activity resulted in a fine of $10,000, a portion of which was suspended, and administrative costs.
■ Reached a stipulated settlement agreement with Pea Management Group Inc., doing business as Escrow Unlimited, because Pea Management did not maintain complete and suitable transaction records. Pea Management was fined $3,500. The company has corrected the records deficiencies and has also agreed to increase its surety bond.
■ Fined Home Plus Financial Inc., formerly licensed as a mortgage banker, $5,000 -- $2,500 for failing to submit financial information and $2,500 failing to permit an examination.
■ Reached a stipulated settlement agreement with Cedar Mortgage Co., doing business as Fallon-based Cedar Mortgage. Cedar Mortgage provided mortgage broker services from an licensed California office. The company agreed to pay a $2,500 fine and surrender its mortgage broker's license.
■ Issued a cease-and-desist order to Las Vegas-based Homekeepers RSVP, formerly doing business as Homekeepers LLC, for performing unlicensed loan modification services. The company is prohibited from advertising for and/or soliciting foreclosure or loan modification consulting business and cannot provide these services to Nevada consumers. The company has also been fined $20,000 and must pay the division's investigative costs.
■ Issued a cease-and-desist order to Las Vegas Paralegal Services and Maria D. Davila for providing foreclosure and loan modification consulting services without a license. Davila and Las Vegas Paralegal Services are barred from advertising for and/or soliciting foreclosure or loan modification consulting business and cannot provide these services to Nevada consumers. They have each been fined $10,000 and must pay the division's investigative costs and any attorney's fees the division may incur.