CFPB Sues 1st Alliance Lending, LLC Citing Unlawful Mortgage Lending Practices
The Consumer Financial Protection Bureau filed a lawsuit against 1st Alliance Lending, LLC, John Christopher Dilorio, Kevin Robert St. Lawrence and Socrates Aramburu for allegedly engaging in a number of unlawful mortgage lending practices, according to a press release.
The Hartford, CT-based lender originated loans from 2004 to 2019, however, it stopped operating in November 2019. Dilorio served as chief executive officer and alongside St. Lawrence and Aramburu, the three served as 1st Alliance's managing executives.
"The Bureau alleges that 1st Alliance, with DiIorio’s, St. Lawrence’s, and Aramburu’s participation, knowledge, and direction, violated the Truth in Lending Act (TILA), the Fair Credit Reporting Act (FCRA), the Equal Credit Opportunity Act (ECOA), the Mortgage Acts and Practices—Advertising Rule (MAP Rule), and the Consumer Financial Protection Act of 2010 (CFPA)," according to the CFPB's release.
"The Bureau’s complaint, which was filed in the United States District Court for the District of Connecticut, seeks injunctions against the defendants, as well as damages, redress to consumers, disgorgement of ill-gotten gains, and the imposition of civil money penalties."
Additionally, the CFPB is alleging that since 2015, 1st Alliance used unlicensed employees to engage in mortgage-origination activities and interactions with consumers. These activities were illegal under CT state law and the Bureau also stated that 1st Alliance's use of unqualified sales employees to deprive customers of critical, accurate and timely information was unfair.
Click here to learn more about the lawsuit.
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