Oversight of mortgage brokers and lenders

Re “Real Estate Fraud Booms,” Dec. 4

This article unfairly describes the oversight of mortgage brokers and lenders by the California Department of Corporations.

In addition to the formal court actions mentioned in the article, the department also resolves allegations of fraud by regulatory examinations, a process that is less expensive and less time consuming than litigation, thus saving taxpayer money. By conducting these examinations on mortgage brokers and dealers, the department is able to find unlawful and unauthorized charges made by brokers and lenders and secure refunds of these charges to consumers without going to court.

The fact that real estate mortgage fraud is increasing in California sadly cannot be denied. The department continues this battle to better protect California borrowers from fraud and abuse by vigorously enforcing the law while providing a fair and efficient financial services marketplace.

WAYNE STRUMPFER

Acting Commissioner

California Department

of Corporations

Sacramento