A Washington state financial regulator slapped a $185,000 fine on mortgage brokerage Xpert Home Lending, and will revoke its ability to originate loans in the state if the firm does not follow an agreed upon consent order.
The mortgage broker was accused of a handful of infractions including failing to license a number of its branches, advertising its company without displaying necessary information and not developing an anti-laundering program that complies with the requirements of the Financial Crimes Enforcement Network, a Washington state’s consent order dated May 2 claims.
Washington State Department of Financial Institutions claims at least five unlicensed branches had residents of its state working for Xpert Home. Meanwhile, at least one employee of the mortgage broker was advertising services of Xpert without properly displaying information from the NMLS.
Allegations by the state follow a 2023 examination, which uncovered alleged violations of the state’s Consumer Loan Act.
Parties involved have agreed to take action to correct said issues and provide the state with updated copies of its anti-money laundering policy, supervisory plans and proof of advertising compliance,the consent order said.
Xpert Home was formed in 2021 by brokers Richard Hanlin and Alysia Jill Budd, a former United Wholesale Mortgage account executive. The Georgia-based brokerage has over 600 sponsored loan officers and has branches in more than a dozen states, per the Nationwide Multistate Licensing System. Xpert Home was ranked as a top ten mortgage broker in 2021 by UWM, Hanlin’s Linkedin said.
If the mortgage broker and its two founders do not follow the consent order, they will be barred from originating loans in the state until May 2028, documentation shows.
Xpert Home did not immediately respond to a request for comment Monday.
Other lenders were also fined by the regulator in May, and some were ordered to stop operating in the state, according to the Washington State Department of Financial Institutions’ website.
California-based Bay-Valley Mortgage Group, Home Direction, Cleveland Street Mortgage and Directors Mortgage are among firms fined for breaching a number of Washington state requirements including not listing branches active, failing to have compliant supervisory plans and company misrepresentation.
As federal regulators under the Trump administration have signaled that oversight will be reduced, mortgage stakeholders have commented that this will push state regulators to the forefront of policing the mortgage industry.
“States like Massachusetts, California, Washington state, Kentucky, North Carolina and Illinois have always been tough. You’re going to see some of these states step up,” said Kevin Peranio, chief lending officer at PRMG, speaking at the Broker Action Coalition advocacy conference in mid-April.
