Patrick Terrance Donlon, a mortgage loan originator, has received sanctions from 21 state financial regulatory agencies for violating the Secure and Fair Enforcement for Mortgage Licensing (SAFE) Act, according to the Conference of State Bank Supervisors (CSBS).
Donlon, previously licensed with Trusted American Mortgage LLC, agreed to a multi-state settlement after state regulators determined that he directed another person to complete required continuing education courses on his behalf, falsely claiming the credit for himself. Under the terms of the settlement, Donlon is subject to licensing bans, restrictions, and administrative penalties totaling $31,000.
According to the CSBS, Donlon held active mortgage loan originator licenses in 19 states and had pending applications in two additional jurisdictions that participated in the settlement.
The SAFE Act, enacted by Congress to bolster consumer protection and reduce fraud in mortgage lending, requires mortgage loan originators to meet minimum standards, including at least 20 hours of pre-licensing education and eight hours of annual continuing education. False reporting of required education is considered a violation of both state and federal licensing obligations.
Licensed in 18 states, Centennial, Colorado-based Trusted American Mortgage reported an average of $1.6 million in monthly volume, according to Modex. And of its reported $19.15 million in total annual volume, the company does nearly a 50/50 split in purchase loans and refis. The company reported nearly $11 million in conventional volume over the past year, followed by approximately $4.7 million in FHA volume, $3.2 million in VA volume, and just $236,000 in standalone second volume.
State financial agencies from Arizona, Arkansas, California, Colorado, Florida, Idaho, Illinois, Iowa, Kansas, Maryland, Michigan, Minnesota, Montana, New Mexico, Oklahoma, Ohio, Oregon, South Carolina, South Dakota, and Texas joined in the settlement. Regulators in Arkansas, Colorado, Florida, Iowa, Kansas, and Texas played leading roles following an investigation by the NMLS Mortgage Testing and Education Board.
Under the settlement terms, Donlon is permanently barred from mortgage loan origination in all participating states except Colorado and Florida, where he may reapply for licensure after two years, provided he pays all penalties and completes additional education. In addition, he is prohibited from serving as a Qualified Individual or Control Person of any financial services entity registered with NMLS for a period of two years and has been removed from such roles at Trusted American Mortgage.
