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January 31, 2022
Media Contact: Laura Hall, 517-290-3779, DIFS-press@michigan.gov
Consumer Hotline: 877-999-6442, Michigan.gov/DIFScomplaints
FOR IMMEDIATE RELEASE: Jan. 31, 2022
(LANSING, MICH) The Michigan Department of Insurance and Financial Services (DIFS), along with financial regulatory agencies from 42 other states, has agreed to terms to address the actions of 441 mortgage loan originators that deceptively claimed to have completed annual continuing education as required under state and federal law. Sixteen mortgage loan originators from Michigan are involved in these disciplinary actions.
"DIFS is pleased to partner with fellow regulators from across the U.S. on these disciplinary actions," said DIFS Director Anita Fox. "Mortgage loan originators play an important and trusted role for Michigan home buyers, and they must act in compliance with state and federal laws in order to operate in this state."
Through the settlements, the mortgage loan originators agreed to surrender their licenses for a period of three months, pay a fine of $1,000 for each state in which he or she holds a license and take continuing education beyond Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act) requirements.
Congress enacted the SAFE Act to enhance consumer protection and reduce fraud through minimum standards for the licensing and registration of state-licensed mortgage loan originators. The law calls on the states to implement and enforce these standards, and every state has enacted its own version of the SAFE Act that requires mortgage loan originators to have at least 20 hours of pre-licensing education and an annual eight hours of continuing education.
Danny Yen, owner of Carlsbad, Calif.-based course provider Real Estate Educational Services, is facing administrative enforcement actions for both providing false certificates and taking courses on behalf of mortgage loan originators through other education providers in violation of the SAFE Act. Irregularities in education activity were discovered through a gesture-driven authentication tool used to monitor all online courses approved under the SAFE Act mandate.
The mission of the Michigan Department of Insurance and Financial Services is to ensure access to safe and secure insurance and financial services fundamental for the opportunity, security, and success of Michigan residents, while fostering economic growth and sustainability in both industries. In addition, the Department provides consumer protection, outreach, and financial literacy and education services to Michigan residents. For more information, visit Michigan.gov/DIFS or follow the Department on Facebook, Twitter, or LinkedIn.
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