The California regulator has revoked the license of a residential mortgage lender LoanSnapthe latest in a series of problems for the fintech lender.
According to the file of California Department of Financial Protection and Innovation dated October 18, LoanSnap had its license revoked after it failed to renew its surety bond. That policy, designed to protect consumers from lender fraud and financial risk, expired in early August.
The department said it issued documents to LoanSnap within two weeks from that date, stating that the license will be revoked, and the company has not yet responded to request a hearing.
LoanSnap did not immediately respond HousingWirerequest for comment.
The company — headquartered in Costa Mesa, California — also lost its mortgage loan license in Connecticut earlier this month. The fintech was initially granted a license to conduct a mortgage business in Connecticut in January 2021 and applied for renewal in December 2023. The application was pending, but the license was suspended in July.
A consent order signed by Connecticut’s banking commissioner said LoanSnap failed to notify National Multi-State Licensing Program (NMLS) that its main address has changed. The company was evicted in May from its Southern California office, with a landlord seeking more than $530,000 in unpaid rent.
The Connecticut consent order also noted that the company did not provide a surety bond and falsely reported that it had no bad judgments or adverse accounts. But LoanSnap has been the target of several lawsuits over the past year.
These actions include a Wells Fargo a lawsuit was filed in Minnesota, where the bank sought more than $430,000 for alleged breach of contract. LoanSnap has also faced civil action from Mortgage Capital Trading, South Street Securities, Anderson Tax again The Best Greenand the total verdict in these cases exceeded $1.1 million.
HousingWire also reported in January that LoanSnap was hit with a cease-and-desist order in Connecticut for alleged unlicensed counterfeiting activity that occurred over a period of several months in 2022. The state banking commission has also charged the company with violating the Truth. on the Lending Act and the Fair Credit Reporting Act.
Founded by Karl Jacob and Allan Carroll in 2017, LoanSnap has raised $100 million in seed funding from investors like Richard Branson’s. The Virgin Group; former NFL player Joe Montana Liquid 2 Ventures; again LinkedIn founder Reid Hoffman.
The company offers “smart loans” using artificial intelligence and developed a cloud-based portal, LoanFlow, which aims to give mortgage brokers and loan officers the ability to originate loans anytime, anywhere.
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