Connecticut Lender Closing After Lengthy Fight With State – NMP
Industry News

Connecticut Lender Closing After Lengthy Fight With State

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 CTNewsJunkies.com 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.
 
About the author
Phil Hall
Link copied
Published
Nov 15, 2019
Get the NMP Daily
Analysis and Data
Redfin: Homebuyers Gain Leverage, But Pending Sales Keep Sliding

Pending sales fall 16.4% from a year ago despite lower home prices and mortgage payments, as sellers retreat from a weakening market

Home prices are falling. Mortgage payments are easing. Sellers are becoming more willing to negotiate. Yet the housing market keeps losing buyers.Pending home sales fell 16.4% year over year during the four weeks ending Nov. 1, reaching their lowest level in Redfin's weekly ...

Continue reading
Tech
New AI-Run Mortgage Startup Builds Database Of 224,000 LOs

LenDb.ai is making LO records available to AI assistants, offering a potential new way for borrowers to find originators

A new mortgage technology startup is betting that borrowers will increasingly turn to artificial intelligence to find a loan originator, and it wants to make sure AI knows whom to recommend.LenDb.ai, launched Thursday by venture studio Draper Goren Blockchain, has assembled ...

Continue reading
Renew your NMLS License — for free.

Enjoy access to a free NMLS renewal class when you attend an in-person event.

Find an event
More from
Industry News
Fed Holds Rates, But Pricing Pressures Persist

Rising Treasury yields and fresh inflation data complicate rate locks, borrower qualification, and lender margins as markets anticipate another hike in December

Industry News
Oct 29, 2026
Zippy Adds Capital For Manufactured-Home Lending Push

The $20 million investment from Saluda Grade will support expansion beyond 27 states and new loan products across wholesale, retail, and community channels

Industry News
Oct 16, 2026
Inflation Hits 3.7%, Putting Mortgage Rate Relief At Risk

September’s inflation pickup puts recent rate improvements at risk, potentially eroding affordability gains from lower home prices and seller concessions

Industry News
Oct 14, 2026
PLACE Acquires Ardley, Expanding Push To Turn Existing Borrowers Into New Loans

The latest deal connects borrower retention technology with Maxwell's origination platform and PLACE's real estate network, creating new opportunities for lenders

Industry News
Oct 09, 2026
Equifax, TransUnion Launch New Tools To Cut Credit Report Costs

Both bureaus introduce ways to purchase credit scores separately from reports, while Equifax reports growing VantageScore adoption and extends $1 pricing through 2028

Industry News
Oct 09, 2026
Newrez, eXp Realty Form Joint Venture To Target Purchase Business

Revenos Mortgage is set to launch in early 2027, replacing eXp's joint venture with Kind Lending

Industry News
Oct 08, 2026