On June 20, 2006, Mid-South Mortgage & Investments, Inc. d/b/a Freedom Lending of Meridian, Mississippi through its president, David Hand, entered into a Consent Order with the Mississippi Department of Banking and Consumer Finance, with regard to alleged violations of the Mississippi Mortgage Consumer Protection Law. In accordance with the terms of the Consent Order, the mortgage company license of Mid-South Mortgage & Investments, Inc. d/b/a Freedom Lending was suspended for a term of three (3) years effective immediately and a civil money penalty in the amount of Ten Thousand Dollars ($10,000.00) was assessed.

The Consent Order alleges that Mid-South Mortgage & Investments, Inc. d/b/a Freedom Lending executed two different and conflicting HUD settlement statements and sales contracts on at least six mortgages transactions for borrowers Tahria Creagh, Marvin Horn, Mary L. Thomas, Annie and Kenneth Williams, Roderick Portis and Tammie L. Pack and that the company “directed the destruction and concealment of certain records and files to cover up the fraudulent and improper actions.” The allegations were neither admitted or denied by way of the Consent Order.