The New Jersey Department of Banking and Insurance Thursday ordered mortgage lender Aegis Wholesale Corp. to stop taking applications and closing on loans without funding. Department Commissioner Steven Goldman also ordered the company to secure alternative funding sources for loan applications already in process.
Goldman said Aegis closed on at least two loans when the company and its employees knew or should have known that they would be unable to fund them. The department is in the process of determining how many borrowers have been affected. Aegis, which has an office in Clark, N.J., has 20 days to request an administrative hearing or the ruling will be final. Goldman advised consumers who have recently submitted an application with Aegis to find a new lender. The department said it issued seven such orders since March.