Magazine article American Banker

AppOnline Unit Gets Temporary License Reprieve

Magazine article American Banker

AppOnline Unit Gets Temporary License Reprieve

Article excerpt

After getting cooperation from Island Mortgage Network, the New York State Banking Department has postponed the Melville, N.Y., lender's license revocation hearing. The hearing, which was to take place Tuesday of this week, is now set for July 25. Island Mortgage has agreed to surrender its license sometime before that date, and the hearing will be canceled if the company honors that agreement. Meanwhile, the bricks-and-mortar subsidiary of AppOnlin.com is finally letting examiners check its records, and it cannot conduct any new business in the United States, a Banking Department spokesman said. AppOnline.com is still doing business. Calls to Island Mortgage and AppOnline.com were not returned. The postponement is a slight reprieve for a company that has been under siege from banking regulators and creditors for a month. On June 29 the American Stock Exchange halted trading on AppOnline.com. One day later the Banking Department suspended Island Mortgage's license after charging that the company had failed to meet its financial responsibilities and had refused to give examiners access to its records or otherwise cooperate. Still, its troubles appear far from over. In addition to allegedly doing business after its lines of credit had been terminated, Island Mortgage is charged with canceling checks it issued to mortgagees and sellers of properties after closings, while still collecting fees on the loans. It has collected fees on $150 million of loans that have not yet closed, according to the Banking Department. …

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