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January 21, 2008

Mortgage company fined for deceptive loans

A licensed mortgage loan broker in Scarborough has entered a state Superior Court consent decree that resolves a charge from Maine's Attorney General that it violated the state's Unfair Trade Practice Act when it helped clients falsify loan applications, according to a press release.

The Attorney General's office alleged Maine Mortgage Group made a $7,000 short-term loan to the homeowner to make the mortgage applicant appear to have more assets. "This type of deceptive behavior is one of the causes of the current housing crisis," Attorney General Steven Rowe said in the release. "Falsifying loan applications has resulted in many homeowners receiving loans that they cannot afford, eventually resulting in foreclosure."

The court ordered Maine Mortgage Group to stop making deceptive loans and pay a total of $8,615 in restitution and fines. The decree states that Maine Mortgage Group claims no wrongdoing.

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