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N.C. Banks commissioner revokes mortgage lender's license

Posted July 7, 2009

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— The North Carolina Commissioner of Banks revoked the mortgage lender license of North American Real Estate Services Inc. (NARES), finding that it used a variety of shell companies and fictitious names in order to avoid state regulation, the commissioner announced Tuesday.

The commissioner ordered NARES and its affiliated companies to cease and desist from advertising or engaging in the mortgage business in North Carolina. The commissioner also ordered NARES, its affiliated companies, and the companies’ owners, officers, and directors to pay a $320,000 fine to the state and refund $60,000 to consumers.

“This case shows how far some mortgage companies will go to escape our regulation,” said Chief Deputy Commissioner of Banks Mark Pearce. “This decision holds not only the company responsible, but also the individual owners that profited from the illegal scheme. North Carolina will continue to pursue these companies and shut the door on this type of business.”

The commissioner’s ruling found that NARES was one of several corporate entities that operated under the Pacific Bancorp name. The owners and directors of Pacific Bancorp established shell corporations in an effort to cloud their true identity and to shield them from liability, according to the report. 

Through this network of shell companies, the Pacific Bancorp entities attempted to obtain licensure in every state. If one company was denied a license, the enterprise would reapply using the name of a different shell. For example, when the Washington Department of Financial Institutions (“WDFI”) refused licensure to NARES, the enterprise reapplied to the WDFI under the name, “Americawide," according to the report.

"Through these shell corporations, the owners of Pacific Bancorp attempted to sell to unlicensed individuals a right to do business in North Carolina," the commissioner said. "These unlicensed individuals would operate with no meaningful controls, undercutting the state’s efforts to supervise and regulate the mortgage industry."


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  • Maximus - the - man Jul 8, 2009

    What about a "Miracle Mortgage"....The only miracle they are in the business is ruining peoples monetary stability to make $$$ in the pockets. Against misleading advise I used this company and now locked into a ARM because they "forgot" to tell me that I was approved for a fixed rate FHA loan and that I had to get a ARM......it was because FHA does not pay martgage broker fees and they would have made nothing off of it. Thank you Karen.....

  • ech Jul 7, 2009

    now shut down the companies out there recruiting loan officers as net branch operations. they are doing the samething allowing the loan officers to open up out of their homes with little to no overhead and offer mortgages to the public with no supervision b/c they are also out of state.

  • OpinionatedGuy Jul 7, 2009

    What about Countrywide, I mean Bank of America... Talk about fraud...

  • JustOneGodLessThanU Jul 7, 2009

    Thank you, government folks!! :-)

  • dta27615 Jul 7, 2009

    How many other do they NOT know about?

  • aspenstreet1717 Jul 7, 2009

    Spell check?????

  • cam7002 Jul 7, 2009

    NC is a leader in lending protections thanks in no small part to our Commissioner of Banks and Deputy Commissioner Pierce. Fantastic!