Large Net Branch Company Closed for Not Licensing Loan Officers
“Myron Miller, a former vice president at the company, told MortgageWire that Dana Capital was facing hefty fines in a handful of states because some loan officers at its net branch affiliates were unlicensed.”
May 08, 2007
Dana Capital closes, branch managers say they are owed money
According to several branch managers of Dana Capital Group in Irvine and to industry publication MortgageWire, the lender shut down last week and owes the managers money. I have called the company repeatedly over the past couple business days and left voice mail messages, but haven’t heard back.
People calling me say they paid for a license to make loans under the Dana Capital name and also sent some loans to it, which it would fund. They earned a commission on loans they sent to Dana Capital, but in recent months haven’t been paid.
Steve Hibler, president of Crown Financial, a mortgage brokerage based in Santa Ana, said he and about 30 loan officers did business under the Dana Capital umbrella until recently. Hibler said he had to fight with Dana Capital to get $44,000 he was owed, which he eventually received, but is still owed about $4,800. I’ve received numerous calls and emails from branch managers who say they are owed anywhere from a few thousand to as much as $55,000.
Net branch operator Dana Capital Corp., Irvine, Calif., closed its doors last week after being hit with hefty licensing-related fines, according to past employees of the firm. At its peak, Dana Capital had 800 branches and was processing up to 2,400 loans per month. Myron Miller, a former vice president at the company, told MortgageWire that Dana Capital was facing hefty fines in a handful of states because some loan officers at its net branch affiliates were unlicensed, even though Dana held licenses in 23 states. He said company owner and founder Dana Smith paid some of the fines, but ultimately decided to close the firm’s doors.
See entire article at: http://blogs.ocregister.com/mortgage/