CM Capital pays $215,000; faces Feb. 28 deadline

However, Mortgage Lending Commissioner Joseph Waltuch has been terminated effective Feb. 18, and it’s unclear whether the state will take any further action against CM Capital Services.

Deputy Commissioner Nancy Corbin will serve as interim commissioner until a permanent replacement is named for Waltuch.

Like other hard-money lenders, CM Capital solicits money from investors and uses the money to make loans to developers at double digit rates.

Several months ago, CM Capital tentatively agreed to pay $215,000 in fines and fees for regulatory violations.

The agreement became final with the payment of the money on Thursday , the same day that the Las Vegas Review-Journal reported Waltuch’s termination.

In the agreement, the Mortgage Lending Division referred to administrative violations uncovered in a 2009 examination at CM Capital. However, the agreement doesn’t disclose what the violations were.

Waltuch ordered CM Capital to stop the alleged violations and ordered the company to file a financial statement by Feb. 28 concerning its solvency.

In an interview Monday, CM Capital Chief Executive Todd Parriott stopped short of saying the company was solvent under state rules and of promising to meet the deadline for the financial statement.

“We are doing everything we can to get (the financial statement) done. There are just a couple of moving parts that are beyond our control,” he said. Parriott referred to a matter pending before the board of affiliated Desert Capital Real Estate Investment Trust.

“We have enough cash flow to build our company and meet all our obligations,” Parriott said. “We make enough money to pay all our bills.”

If CM Capital fails to file the financial statement by the deadline or discloses that it is insolvent, the mortage division must decide whether to take further action against CM Capital.

Contact reporter John G. Edwards at
jedwards@reviewjournal.com or 702-383-0420.