Former NAMB President Reaches Plea Deal with PA Department of Banking

George Hanzimanolis NAMB President
George Hanzimanolis Former NAMB President

Former National Association of Mortgage Brokers (www. namb.org)  President George Hanzimanolis reached a plea bargain with the Commonwealth of Pennsylvania on allegations that Mr. Hanzimanolis and his company Northeast Financial Consultants, Inc violated the Real Estate Settlement Procedures Act (RESPA), the Mortgage Licensing Act and the MBBCEPA.

The Banking Department alleged that on at least 37 occasions from January 2008 through December 2009, Mr. Hanzimanolis’ mortgage company submitted FHA insured mortgage loan applications which were originated by 11 different non FHA mortgage brokers. Mr. Hanzimanolis was the President of the National Association of Mortgage Brokers during this time.

The allegations continue to say that Hanzimanolis’ company would re-type the application and put their own name on the application and submit the loans for approval based on the allegation that they took the loan app and not the approved brokers.

Hanzimanolis then paid the non-approved brokers on the HUD-1 settlement sheet listing a charge called consulting fees.

These allegations are in violation of the Pennsylvania Mortgage Licensing Act.

Mr. Hanzimanolis consented to pay restitution of $145,457.45 to consumers and pay a fine of $191,000 for the violations. Mr. Hanzimanolis can reduce the fine to $63,333 if certain conditions are met.

Hanzimanolis and his company also agreed that his mortgage company have a suspension of their license for 6 months: all but 5 days will be held in abeyance provided Hanzimanolis remains in full compliance with the Order in all respects.

Mr. Hanzimanolis was named Broker of the Year by NAMB, served as the NAMB Nominating Committee Chair has testified in front of Congress and has served as President of the Pennsylvania Association of Mortgage Brokers (PAMB.org).

To read the full agreement, please go to https://www.dailyproperties.com/docs/GH.pdf

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