February 10, 2022
Salem — Oregon is one of three states to reach a settlement agreement with a California-based mortgage education course provider for his role in a multi-state fraud scheme that involved hundreds of mortgage loan originators.
The Oregon Division of Financial Regulation — along with the California Department of Financial Protection and Innovation and Maryland's Office of the Commissioner of Financial Regulation — brought separate administrative actions against Danny Yen and his family for providing false certificates and taking courses on behalf of mortgage loan originators through other education providers in violation of the Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act).
As part of the settlement, the Yen family agreed to a lifetime ban from direct and indirect involvement in businesses that provide mortgage lending-related education. In addition to a $75,000 fine, the Yen family agreed to fully cooperate with the investigations. If the Yens violate any term of the settlement agreement, they will be obligated to pay a $15 million noncompliance penalty.
“This is a good outcome against individuals perpetrating fraud," said TK Keen, division administrator. “We need to be aggressive against this type of conduct, and a lifetime ban sends a strong message that we will not allow this kind of behavior."
Those who took classes from the Yens were fined $1,000 per state they are licensed in and agreed to surrender their licenses for three months. In addition, they must retake all continuing education classes and additional classes beyond state and federal SAFE Act requirements.
Forty-seven people with Oregon licenses were fined; however, not all resided in the state. The division continues to pursue its investigation with regulators from other jurisdictions.
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The Division of Financial Regulation is part of the Department of Consumer and Business Services, Oregon's largest business regulatory and consumer protection agency. Visit
dfr.oregon.gov and
dcbs.oregon.gov.