Dynamic Capital Mortgage - Retail - Agency, Alt-A, Subprime

Update - 2009-08-28: Further investigation has revealed that Dynamic Capital Mortgage Inc. has non-renewed, surrendered and/or requested surrender of their licensing in at least four states.

Joanna Brooks in the South Carolina Department of Consumer Affairs reported the main and branch office mortgage broker licenses for Dynamic Capital Mortgage Inc. were 'non-renewed' and had expired as of 2008-09-30.

The State of Illinois' Division of Banking is a bit behind processing non-renewals for July and won't have current info available online until Monday. But Acting Licensing Manager Karen Harris told us that Dynamic Capital Mortgage Inc. did not apply for renewal. She gave us official confirmation that their license to do business in IL expired naturally on 2009-07-02.

Both Rhode Island and New Jersey confirmed Dynamic Capital Mortgage Inc. had surrendered its licenses there. A representative with New Jersey's Dept. of Banking and Insurance gave us a date of 2009-08-11. Rhode Island actually received a letter requesting the surrender of licensing from Dynamic Capital Mortgage Inc. with an effective date of 2009-07-31 according to Rebecca Specht, the Principal Licensing Examiner for the Banking Regulation Division. The license still displays as active on their list, but Specht put us on hold long enough to grab the file for herself to confirm the request was indeed there... it simply had not yet been "processed" in their system.

Original Ailing Post - 2009-08-18: By a Consent Order with the Commonwealth of Massachusetts' Division of Banks dated 2009-08-07, Dynamic Capital Mortgage, Inc. has agreed to cease originating in the state and will be prohibited from "engaging in the mortgage broker or mortgage lender business" in Massachusetts for a term of 36 months.

The action stems from a report issued to Dynamic Capital Mortgage following a state examination of the company's records that started on 2009-01-12. A "Findings of Fact and Temporary Order to Cease & Desist" (view cached copy) was issued regarding Dynamic Capital Mortgage on 2009-07-16, but a Superior Court order of the same date enjoined the Division of Banks from enforcing it. The Division issued a separate Temporary Order to Cease & Desist on 2009-07-16 against Natalie Vlasova, who had been a licensed loan officer working for Dynamic Capital Mortgage.

The Consent Order does not constitute "an admission by Dynamic Capital to any allegations made or implied by the provisions of the Report." It provides for an orderly closing out of the company's current pipeline of business over a period of up to six months, during which time Dynamic Capital Mortgage must "place said loan applications with one or more qualified broker(s) or lender(s)... with no loss to applicants." Principals Allison Horne, Drew Grandi and Steven Trowern will be prohibited from owning or managing a mortgage operation in Massachusetts for the next three years, but are not banned from becoming licensed originators or working for another mortgage company:

"Dynamic Capital's officers and directors agree that in the event that they accept employment as a mortgage loan originator with another entity licensed by the Division, they shall be prohibited for a period of thirty-six (36) months from the effective date of this Consent Order from taking an ownership position in such licensee and from participating, in any manner, in the responsibilities or duties of a control person of such licensee."

Jeff Gerson, introduced to us as the company's general counsel, stated that the Order only applies to Massachusetts and Dynamic Capital Mortgage is still licensed and doing business in other states. According to their web site (view cached) the company is licensed to do business in CT, DE, FL, IL, MA, ME, MD, MI, NC, NH, NJ, NY, PA, RI, SC, WV and the District of Columbia. A representative with the New Jersey Dept. of Banking & Insurance told us that Dynamic Capital Mortgage had surrendered its license in that state on 2009-08-11. It remains unclear what, if any, affect the action taken by Massachusetts will have on licenses in any of those other states. Gerson declined further comment.

Dynamic Capital Mortgage saw average production volume of over $30 million per month in 2007. Headquartered in Brookline, MA, the company lists 14 branch offices on its web site (view cached). Information from Dun & Bradstreet indicates Dynamic Capital Mortgage employs 160 people. There are just under 100 loan officers (view cached listed on the site.

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