Olympia - The Office of Administrative Hearings has issued a final order calling for fines of $457,575 for various violations of the Mortgage Broker Practices Act by a California mortgage broker. In addition, the broker has been ordered to return more than $712,500 to 120 Washington state borrowers.
Dennis A. Dellwo, the reviewing officer, upheld almost all of the findings of the administrative law judge who heard the Department of Financial Institutions’ case against Nationscapital Mortgage Corporation of Orange, CA, in February 2002.
The mortgage broker, which conducted business in Washington in the 1990s, was cited for engaging in deceptive practices, failing to make disclosures, using bait and switch practices, engaging in trust accounting violations, failing to maintain records as required, violating certain federal regulations, and operating unlicensed locations.
In addition, fines of more than $290,000 were levied against Nationscapital owner and president Jamie Chisick. The California resident is prohibited from conducting business as a mortgage broker in Washington State for 20 years. Four other Nationscapital corporate officers and employees are also prohibited from conducting business as mortgage brokers in Washington. The final order revokes the license of Nationscapital to do business in the state of Washington and levies investigation fees of $29,000. Also, Chisick is jointly liable for the $712,000 funds due to the Washington state borrowers.
Nationscapital operated as a mortgage broker in Washington from an office at 800 Bellevue Way NE, 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. His order, directing the corporation to make restitution and pay fines, was issued in February 2002.