The Enforcement Unit receives and analyzes complaints related to potential violations of the Mortgage Broker Practices Act, the Consumer Loan Act, the Check Cashers and Sellers Act, the Escrow Agent Registration Act, and the Uniform Money Services Act. During the course of the investigative review, the Enforcement Unit must decide whether to resolve matters in an informal or formal manner.
The formal Enforcement actions brought by DFIs Consumer Services Division are available on the DFI website. These actions are generally the culmination of months of investigative review and analysis. A significant portion of the Enforcement Units time is spent investigating unlicensed activity. Typically, DFI will pursue formal Enforcement action against unlicensed entities; however, when there has been no consumer harm or where the company can demonstrate a likelihood of future compliance, DFI may resolve the complaint without issuing charges by proceeding directly to a negotiated consent order.
Many violations are resolved at an informal level at the complaint stage of the process. Complaint resolutions are not posted to the DFI website, nor are they available on NMLS. Over the past year, the Consumer Services Enforcement Unit has closed 1,707 complaints, 240 of which cited violations of a specific statute.
To assist our licensees in evaluating their own potential compliance issues, the Enforcement Unit has provided a list of the most common violations cited against licensees in the complaint process.
As a whole, the most common violation by licensees is failure to respond in a timely manner and completely to Department-issued Directives and Subpoenas. For more information on how to avoid being cited for this violation, please refer to the article in the Fall 2012 newsletter on this topic.