OCMBC Inc., parent company of LoanStream Mortgage, responded to the lawsuit filed by Home Mortgage Alliance Corporation (HMAC), denying all allegations, calling it “dramatized” and “baseless." The nationwide non-QM lender also threw its own accusation to the mix, questioning the legitimacy of HMAC's claims and its founder Alfred Hanna. OCMBC alleges that HMAC is violating Federal Housing Finance Agency (FHFA) orders by remaining affiliated with a suspended lender.
Irvine-based OCMBC Inc. linked a FHFA document to its public statement, showing the final suspension order for Affiliated Funding Corporation (AFC) that bars the company from future participation with regulated entities such as warehouse banks. Likewise, the FHFA orders regulated entities from ceasing any business relationship with Affiliated Funding Corporation indefinitely, beginning July 19, 2017.
AFC’s FHA approval was withdrawn for failing to notify HUD/FHA that it closed its business and that its license had been revoked by the State of California Department of Corporations, the FHFA document states. AFC had also failed to properly analyze liabilities, ensure that an FHA mortgage was not used as an investment, resolve concerns to the appraisal report, nor did it credit the unused Upfront Mortgage Insurance Premium to borrowers.
“As of the date of this publication, it appears HMAC currently holds several warehouse lines of credit, with regulated entities,” OCMBC Inc. claims in its statement. “Given the association of key individuals from AFC with HMAC, the motivations behind this lawsuit become even more questionable.”
OCMBC Inc. goes on to deny all allegations presented in HMAC’s lawsuit, claiming that the use of confidential information is false and amounts to "propaganda." Additionally, OCMBC Inc. denies its poaching accusation, claiming that employees have a right to choose their place of work and their transitions to OCMBC were made independently and lawfully.
In addition to calling HMAC’s complaint “baseless” and saying it “lacks merit,” OCMBC claims it’s a "clear attempt to engender fear and distract from the true motivations behind the lawsuit… a groundless attempt by a less reputable entity to extract financial gain.”
HMAC did not immediately respond to NMP’s request for comment, nor did OCMBC Inc.
