1st Alliance Lending Fights For Survival Against CT State Department Of Banking
1st Alliance Lending is now fighting to survive after being forced to cut its workforce and facing shutdown action by the Connecticut state Department of Banking, according to a recent report.
"Today the mortgage company is fighting for its life, with its third big layoff in less than six months done on Friday. This time it was 33 employees, some in management, bringing its staff from a high of 178 last spring to 62 today," according to the CTPost.
"Just last spring 1st Alliance was plowing ahead on a plan to expand to 300 people with help from the state Department of Economic and Community Development. Now another arm of the state wants to take its license away."
1st Alliance is being accused of allowing non-licensed employees to work in call centers, accept applications and negotiate mortgages with customers, which would be violations at the state and federal levels.
"CEO John DiIorio and his lawyers — including Ross Garber, who represented former Gov. John G. Rowland and the governors of three other states — say 1st Alliance is operating within the letter and the spirit of the laws, although he’s certainly closer to the edge than traditional mortgage firms," according to the report.
The report even states that Dilorio believes his business model is the same one that is being used by other national mortgage firms, citing Quicken Loans' Rocket Mortgage unit.
To learn more about 1st Alliance's legal battle with the CT state Department of Banking, click on the image above.
