1st Alliance Lending LLC has cited excessive regulations imposed by the Connecticut Banking Department for its decision to halt a planned expansion on its headquarters in East Hartford and lay off 35 of its Connecticut employees.
The company, a national mortgage lender operating in 46 states, issued a statement that blamed the Connecticut Banking Department for “an effort” requiring the state’s mortgage company employees to obtain licenses if they have any interaction with consumers, whereas current federal and state law only limits licensing to mortgage company employees who take home loan applications and negotiate loan rates with borrowers. 1st Alliance claimed that its negotiations with the banking department broke down as the two sides could not reach an agreement.
“The regulatory environment in Connecticut has reached a breaking point,” said John DiIorio, CEO of
1st Alliance. “Our company was founded and has grown in Connecticut. We are extremely disappointed to have to look at other options. This isn't what we wanted. But Connecticut's overregulation and desperate revenue grabbing have severe consequences for those trying to live and do business here.”
The banking department declined to comment on the lender’s statements.
1st Alliance Lending LLC has cited excessive regulations imposed by the Connecticut Banking Department for its decision to halt a planned expansion on its headquarters in East Hartford and lay off 35 of its Connecticut employees.
The company, a national mortgage lender operating in 46 states, issued a statement that blamed the Connecticut Banking Department for “an effort” requiring the state’s mortgage company employees to obtain licenses if they have any interaction with consumers, whereas current federal and state law only limits licensing to mortgage company employees who take home loan applications and negotiate loan rates with borrowers. 1st Alliance claimed that its negotiations with the banking department broke down as the two sides could not reach an agreement.
“The regulatory environment in Connecticut has reached a breaking point,” said John DiIorio, CEO of 1st Alliance. “Our company was founded and has grown in Connecticut. We are extremely disappointed to have to look at other options. This isn't what we wanted. But Connecticut's overregulation and desperate revenue grabbing have severe consequences for those trying to live and do business here.”
The banking department declined to comment on the lender’s statements.
