On March 26, the Connecticut Department of Banking entered into a consent order with a lead-generation company, alleging that the company engaged in mortgage lead-generation activity in Connecticut without the required license under the state’s Mortgage Lenders, Correspondent Lenders, Brokers and Loan Originators law. The order also alleges that the company had previously agreed in a 2020 consent order to stop engaging in unlicensed lead-generation activity in the state.
According to the consent order, the state identified the alleged activity during an examination of a Connecticut mortgage lender licensee, which produced records showing a lead-generation relationship with the company. The order states that the company had once been licensed as a mortgage broker in Connecticut, failed to renew that license in 2015, and later filed a 2019 application to obtain a Connecticut lead-generator license, which was ultimately classified as withdrawn.
To resolve the matter, the company agreed to cease and desist from engaging in unlicensed lead-generation activity in Connecticut and to pay a $50,000 civil penalty. The order also notes that the company represented it had surrendered its mortgage-industry licenses as of December 31, 2025 and was winding down mortgage operations nationwide.
Putting It Into Practice: State regulators continue to pursue licensing-related enforcement in the consumer financial services space (previously discussed here). Firms operating across multiple states should continue monitoring state enforcement activity in this area and update compliance controls as necessary.