Oregon — The Oregon Division of Financial Regulation (DFR) has joined Hawaii, Idaho, and Texas in a multi-state settlement with E Mortgage Capital, based in Irvine, California, resolving allegations of unlicensed lending activity and regulatory violations.
The agreement imposes total fines of $669,000 after regulators found that the company allowed unlicensed mortgage loan originators (MLOs) to originate loans and collect commissions across 50 transactions. Additionally, Idaho and Texas regulators determined that unlicensed loan processors performed prohibited functions in more than 125 instances.
In Oregon, regulators cited 27 cases where E Mortgage Capital’s remote work-from-home plan lacked sufficient inspection and supervision of MLOs. Between 2021 and 2023, the company allegedly paid commissions to unlicensed MLOs operating in Hawaii (7 violations), Idaho (16), Oregon (13), and Texas (14).
The participating states also reported that E Mortgage Capital failed to cooperate with examiners, refusing to provide requested information and access to its Loan Origination System. Under the settlement, the company has agreed to cease all unlicensed origination and processing activities.
“Protecting Oregon consumers means ensuring mortgage companies play by the rules,” said TK Keen, DFR administrator. “When firms fail to supervise their employees or cooperate with examiners, we take action to safeguard consumers and the integrity of the lending system.”
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