The state has recently shut down 7 mortgage brokers in Massachusetts and also banned a number of deceptive lending practices. The regulators call this an attack on the brokers who allure the customers into loans that they can not afford. This step has come after there had been a few cases of abuses by mortgage brokers in Lawrence. The Division of Banks has announced that till now it has come up with 90 surprise inspections by 50 examiners. These brokerage firms were located in eastern and central Massachusetts.
The regulators have also gathered evidence of other kinds of abuses in the industry. A few of these activities include not allowing the borrowers to hire a lawyer to scrutinize mortgage documents and requesting them to sign on blank loan application. As a step to help those sections of people who are poor or those who have limited English skills, these mortgage firms have been banned.
