The Colorado Division of Real Estate announced today it has summarily suspended the license of mortgage broker Paul Cardenas of Centennial.
A summary suspension is used where there is a danger of immediate harm to the public.
The division alleges that Cardenas, operating through and for several companies including Lending Denver and Premier Mortgage Capital, falsified income and asset information for borrowers, failed to notify the prospective lenders of mortgage loans the borrowers obtained on recent property purchases, and used fake bank account numbers regarding several properties in Erie.
The Division of Real Estate asserts that Cardenas aided a previously-denied mortgage broker license applicant, Kenneth Gabriel Fairchild, in securing a loan for borrowers.
Cardenas, according to the division, signed documents representing that he was the loan originator, when in fact the borrowers did not know Cardenas, and believed Fairchild was their loan originator.
“In these difficult economic times, it is more important than ever to ensure that increasingly desperate borrowers are protected,” said Erin Toll, Director of the Division of Real Estate
“In addition, our enforcement actions this month show that mortgage fraud will not be tolerated, especially with tightening credit markets,” Toll continued. “Our goal is to ensure residential real estate loan originators act in an honest and trustworthy manner toward borrowers and lenders.”
This marks the second action announced by the division today. See my earlier blog for the first, which has an interesting twist – alleged mortgage fraud and Internet dating.