On January 11, 2007, the Georgia Department of Banking and Finance’s Cease and Desist Orders issued to Scott Losch and Debra Losch, Tierra Verde, Florida, became final.
The Cease and Desist Orders contended that false statements were made or material facts were misrepresented to lenders; felons were employed; employees were paid or compensated for the performance of mortgage activities as independent contractors on a 1099 basis; unapproved branches were operated; net branching was engaged in; unapproved managers operated branch offices; a mortgage loan transaction journal was not properly kept; business was transacted with a person who was unlicensed and unregistered, not exempt from licensing and registrations requirements and was not an employee of a mortgage broker or lender; and false statements were made to the Department.
Pursuant to Georgia state law, the Department may revoke the license of a mortgage broker or lender that employs an individual against whom a final Cease and Desist Order has been issued within the preceding three years if the Order resulted from misrepresentations being made in loan applications .
Rachel Dollar, the editor of Mortgage Fraud Blog is an attorney and Certified Mortgage Banker who handles litigation for lending institutions and secondary market investors.