Ohio Department Of Commerce Seeks To Revoke Ameribanc's Registration

February 4, 2004

Company Could Also Be Fined

The Ohio Department of Commerce announced Tuesday that it is seeking to revoke Ameribanc's mortgage broker certificate of registration and fine the company $100,000.

The Westerville company closed last month after the Department of Commerce alleged Ameribanc failed to pay off mortgages to dozens of homeowners.

The Division alleges the company engaged in a "continued course of misrepresentation and improper and dishonest dealings in violation of the Ohio Mortgage Broker Act when it failed to ensure that its affiliated title company properly set aside escrow funds intended to pay off consumers' prior mortgage notes."

As a result of the company's conduct, the Division alleges at least 38 "consumers who arranged home loan refinancings through Ameribanc Mortgage, Inc. ... never had their prior mortgage note holders paid."

The Division also alleges the company violated Ohio law when deals through its affiliated title company, Buckeye Land Title Agency, Inc. ("Buckeye Land Title"), continued to identify Ohio Bar Title Insurance Co. as its insurance underwriter after Buckeye Land Title had terminated its relationship with the insurer.

In addition, the notice alleges Ameribanc violated state and federal law by failing to disclose that its president and owner, Michael A. Davis, was also an officer of Buckeye Land Title Agency, Inc. -- where Ameribanc referred and placed its title business.

Ameribanc has 31 days to request an administrative hearing to contest the charges.

Soure: Ohio Department of Commerce

Contact ALTA at 202-296-3671 or communications@alta.org.