Olympia - A California mortgage lender has been ordered to return more than $712,000 to 120 Washington state borrowers. The order by an administrative law judge in Olympia was issued to Nationscapital Mortgage Corporation of Orange, California, which conducted business in Washington in the late 1990s.
The order also levies fines of nearly $495,000 against the corporation and $245 thousand against its owner, Jamie Chisick, also of California. In addition, the order prohibits Chisick from conducting the business of a mortgage broker in Washington for 20 years and his top officers for five years.
Nationscapital operated as a mortgage broker in Washington from an office at 800 Bellevue Way NE, Suite 400, from May 1995 to May 1998, when the corporation surrendered its license to the state. It was the company’s practice to solicit Washington consumers by phone from California, then dispatch a Bellevue-based representative to the consumer’s home to get documents signed, and later to close the deal. All documents were then sent to California.
Consumer complaints led to an investigation by the Department of Financial Institutions (DFI) in June 1997. The investigation spanned several months, culminating with the Department charging Nationscapital with deceptive practices, failure to make proper disclosures, and imposing prohibited overcharges. Legal proceedings continued, and in 2000, 40 days of hearings were held before Administrative Law Judge Elmer E. Canfield. Canfield’s order, directing the corporation to make restitution and pay fines, becomes final February 18, 2002. Either party may request a review of the judge's ruling.