Court Shuts Down Mortgage Broker that Collected Fees for Services he Never Provided
A North Carolina-based mortgage company is banned from business and is required to pay refunds and penalties following a lawsuit brought on by the state Attorney General's Office.
Carolina Mortgage Group and its primary owner Jeffrey Cox charged consumers thousands of dollars in up-front fees for mortgage services that the company never provided.
The court ordered Cox and Carolina Mortgage Group to pay about $21,000 in consumer refunds and $90,000 in civil penalties. Additionally, the North Carolina Office of the Commissioner of Banks previously ordered Carolina Mortgage Company to pay more than $46,000 in consumer refunds and $90,300 in fines. Cox and his company lost their licenses to practice in August 2014.
Cox also faces criminal charges in Wake County for residential mortgage fraud and obtaining property by false pretenses.
According to the complaint, Cox told consumers he could help them refinance mortgage loans and other properties for lower interest rates and close the new loans in as little as 30 days. After consumers paid origination fees and for an appraisal, Cox failed to close on the refinancing and claimed various reasons for the delays. Cox also stopped communicating with several customers.
In total, the Attorney General and the North Carolina Office of the Commissioner of Banks received 20 complaints about Cox and his company.
To prevent problems when trying to get or refinance a mortgage, take a look at the NCDOJ's consumer tips on mortgages and home loans.
To make sure a mortgage broker is properly licensed to help you get a mortgage, contact the North Carolina Office of the Commissioner of Banks.
Consumers can file complaints with the North Carolina Attorney General's Office.