Current National Association of Mortgage Brokers (namb.org) President Michael D’Alonzo and his company, Creative Mortgage signed a consent agreement with the Commonwealth of Pennsylvania for violations of the Real Estate Settlement Procedures Act and the Pennsylvania Mortgage Licensing Act.
The state alleged that on 18 occasions Creative Mortgage, Michael D’Alonzo owned company, a non FHA-approved mortgage broker, submitted FHA insured mortgage loan applications to an FHA-approved broker and received compensation. Consumers were to have allegedly paid over $84,000 in excessive and/or unearned fees payable to Creative Mortgage.
D’Alonzo is the second President of NAMB to be in trouble with the Commonwealth of PA. Earlier this year, George Hanzimanolis signed a consent decree with the state. Details of his agreement can be found HERE.
D’Alonzo in an article in the National Mortgage News had this to say about Hanzimanolis:
Michael D’Alonzo responded with
“Yes, it would be my longtime friend, George Hanzimanolis. Any time I have questions or second guess myself, I call George. He’s always been the voice of reason for me, and he’s probably one of the best presidents that NAMB has ever had. He always keeps me grounded with his advice.“
Both D’Alonzo and Hanzimanolis continue to be licensed for mortgage originations in Pennsylvania among others that have done fraudulent business practices. When will the mortgage industry start revoking licenses? What will it take? How many people need to be scammed?