Lenox Financial Mortgage LLC, a technology, marketing, branding and workflow management company, has been issued a cease-and-desist order by the Georgia Department of Banking and Finance.
The department, which issued the order Monday, claimed that the Atlanta company was conducting residential mortgage brokering and lending activities without a license or an applicable exemption.
John Shibley, Lenox's president and chief executive, said he sent a letter to the agency in November voluntarily withdrawing his license because he wanted to change his business model and become a franchisor.
Shibley said the company is dormant and is not originating any loans. Phone calls to the company went straight to an automated voice that said "due to high call volume, we are unable to assist at this time, please leave a name and telephone number and someone will respond as soon as possible."
Shibley said he tried to set up a meeting with the agency in January to notify it that the company's website was still active but that it was not conducting any business.
"I was told they were too busy and refused to meet with me to discuss this manner," Shibley said. "The Department failed to do any investigation before issuing this cease-and-desist order."
Georgia law prohibits any person to directly or indirectly solicit, process, place or negotiate mortgage loans for others or to offer to solicit, process, place or negotiate mortgages for others without a mortgage license or an exemption from licensure. According to the state code, it is also prohibited for any person knowingly to purchase, sell or transfer a mortgage loan or loan application from or to an entity that is not licensed or exempt.
"I have been licensed for 16 years and have always been compliant with the law," Shibley said.
