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PRESTON DUFAUCHARD
CALIFORNIA CORPORATIONS COMMISSIONER
ALAN S. WEINGER (CA BAR NO. 86717)
DEPUTY COMMISSIONER
320 WEST 4
th
Street, Ste. 750
LOS ANGELES, CALIFORNIA 90013-1105
Attorneys for Complainant
BEFORE THE DEPARTMENT OF CORPORATIONS
OF THE STATE OF CALIFORNIA
In the Matter of the Order of THE ) File No. 413 0758
COMMISSIONER OF CORPORATIONS )
OF THE STATE OF CALIFORNIA, )
)
Complainant, )
)
vs. )
)
UNITED MORTGAGE & LOAN )
INVESTMENT, LLC, )
)
Respondent. )
)
ORDER TO DISCONTINUE RESIDENTIAL MORTGAGE LENDING
AND/OR SERVICING ACTIVITIES PURSUANT TO
SECTION 50319, CALIFORNIA FINANCIAL CODE
TO: UNITED MORTGAGE & LOAN INVESTMENT, LLC
7621 LITTLE AVENUE, SUITE 426
CHARLOTTE, NC 28226
THE COMMISSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA
FINDS THAT:
UNITED MORTGAGE & LOAN INVESTMENT, LLC has failed to comply with the
bonding requirements of the California Residential Mortgage Lending Act (California Financial
Code Section 50000 et seq.) in that effective July 20, 2010 Bond No. 22BSBDO3235 issued by
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--
HARTFORD FIRE INSURANCE COMPANY in favor of UNITED MORTGAGE & LOAN
INVESTMENT, LLC expired and no replacement bond has been obtained.
Based on the foregoing, Respondent is conducting residential mortgage lending
and/or servicing business in violation of Section 50205 of the Financial Code and is conducting
business in such an unsafe and injurious manner as to render further operations hazardous to the
public or to customers.
NOW, BASED ON THE FOREGOING, AND GOOD CAUSE APPEARING
THEREFORE, it is hereby ORDERED, under the provisions of Section 50319 of the California
Financial Code, UNITED MORTGAGE & LOAN INVESTMENT, LLC immediately discontinue
the disbursement, in whole or in part, of trust funds held by the licensee and establish a separate
trust account for all subsequent trust funds received by the licensee.
THIS ORDER is to remain in full force and effect until further order of the Commissioner.
Section 50319 of the Financial Code provides as follows:
(a) If the commissioner, as a result of any examination or from any report
made to him or her, shall find that any person subject to this division is in an
insolvent condition, is conducting business in an unsafe or injurious manner that
renders further operations hazardous to the public or to customers, has failed to
comply with the provision of Section 50317, has permitted its tangible net worth to
be lower than the minimum required by law, or has failed to comply with the
bonding requirements of Section 50205, the commissioner may, by an order
addressed to and served by registered or certified mail, or by personal service on that
person, and on any other person having in his or her possession or control any trust
funds or other property deposited in escrow with that person, direct discontinuance
of the disbursement, in whole or in part, of trust funds held by the licensee and order
the establishment of a separate trust account for all subsequent trust funds received
by the licensee. No person having in his or her possession any of these funds or
documents shall be liable for failure to comply with the order unless he or she has
received written notice of the order. Subject to subdivision (b), the order shall
remain in effect until set aside by the commissioner, or the person has been adjudged
bankrupt.
(b) Within 15 days from the date of an order pursuant to subdivision (a), the
person may request a hearing under the Administrative Procedure Act (Chapter 5
(commencing with Section 11500) of Part 2 of Division 3 of Title 2 of the
Government Code). Upon receiving a request, the matter shall be set for hearing to
commence within 30 days after the receipt unless the person subject to this division
consents to a later date. If no hearing is requested within 15 days after the mailing or
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--
service of the notice and none is ordered by the commissioner, the failure to request
a hearing shall constitute a waiver of the right to a hearing. Neither the request for a
hearing nor the hearing itself shall stay the order issued by the commissioner under
subdivision (a).
DATED: July 20, 2010
Los Angeles, California
Preston DuFauchard
California Corporations Commissioner
By_
DiAun M. Burns
Special Administrator
California Residential Mortgage Lending Act
3
