Maverick Funding Corp. in Parsippany, N.J., has hired counsel and expects to give a complete response to Connecticut regulators on Thursday concerning a report that it did not disclose litigation against its founders — as required — when it filed for a lending application in the state.
One of its attorneys is E. Robert Levy, who is also executive director of the New Jersey Mortgage Bankers Association. He said Maverick would give the Connecticut Department of Banking a "complete response and answer to everything" by Thursday.
Maverick continues to fund loans, he said, has strong relationships with its warehouse bankers and enjoys "below average" delinquencies on its Federal Housing Administration production.
The company found itself in the news recently after The Hartford Courant reported that, when it applied for a license to lend in the state, Maverick failed to disclose that its founders were "embroiled in a lawsuit that accused them of acts of fraud, negligence and conspiracy at a previous mortgage company."
Levy said the lawsuit in question was settled out of court, and "there were no negative findings," he added. "All this is overshadowing a good-quality company," he said.
Maverick CEO Ralph Vitiello said, "Our warehouse banks are aware of the situation. We are absolutely still doing business."
The Connecticut banking agency declined to discuss the matter. The Courant quoted state banking commissioner Howard Pitkin as confirming an investigation of Maverick but giving no details.