Mortgage Lenders Settles With Four States

Law360, New York (November 13, 2007, 12:00 AM EST) -- Mortgage Lenders Network USA Inc. has struck settlements with four state banking departments, avoiding possible million-dollar penalties for lending violations it allegedly committed before diving into bankruptcy.

In a stipulation lodged on Monday in the U.S. Bankruptcy Court of Delaware, Mortgage Lenders said it will pay $845,000 to the Connecticut Department of Banking and $10,000 to the New Hampshire Banking Department. The debtor also agreed to surrender its mortgage lender licenses in Michigan and cease its mortgage broker operations in Ohio.

“In sum, the debtor submits...
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