Skip to main content

Connecticut Lender Closing After Lengthy Fight With State

Phil Hall
Nov 15, 2019
Photo credit: Getty Images/ajfletch

A Connecticut non-bank mortgage lender that was engaged in a long-running fight with the state’s banking regulator has announced it will cease operations.
According to a report, John DiIorio, CEO of 1st Alliance Lending in East Hartford, will shut down next month. The company is facing a $1.5 million penalty from the state as part of a license revocation case that has been ongoing for nearly two years.
The state accused 1st Alliance of misleading consumers with call center employees who allegedly performed mortgage origination duties that require licenses. DiIorio insisted the call center employees were never engaged in the loan approval process.
“1st Alliance is dead,” DiIorio said. “There is no path forward for this company. We have worked very hard and in good faith with both the banking department and the DECD [Department of Economic and Community Development] to find a path forward, and it simply can’t be done.”
DiIorio said he is planning to launch a new company in either New Hampshire, Massachusetts or Rhode Island next year, but offered no specifics. He also vowed to fight to restore 1st Alliance Lending’s name.
“We will see this through and we will come back,” he said.

Nov 15, 2019
CHLA Advocates Attorney Opinion Letters As Alternatives To Title Insurance

CHLA asks FHFA to explore use of the letters.

Dec 06, 2023
Helping the H.E.L.P.E.R.s

Federal bill poised to open up market to more teachers, first responders

Dec 01, 2023
Fidelity National Financial Hit By Cyberattack

Industry-leading provider of title insurance and settlement services radio silent on reported breach.

Nov 28, 2023
Citizens Bank Bids Farewell To Wholesale Mortgage Channel

In a strategic pivot, the Providence-based banking giant will stop accepting new wholesale mortgage submissions.

Nov 16, 2023
Surprising Surge In Mortgage Customer Satisfaction, J.D. Power Study Reveals

Study found first-time homebuyers were harder to satisfy, customers don't just shop rates.

Nov 16, 2023
Women Continue To Defy Homebuying Challenges, Representing 22% Of The Market, Survey Finds

Young, educated, diverse, and increasingly savvy, women homebuyers navigate homeownership hurdles with determination.

Nov 15, 2023