Consumer Alert:
Hoss Mortgage Investors, Inc
|
Receiver Appointed
On October 6, 2009, the Washington State Department of Financial Institutions obtained an order in King County Superior Court appointing a receiver for Hoss Mortgage Investors, Inc. The receiver is charged with gathering the assets of the company; making an accounting to the Court and to disburse funds and assets as appropriate. Learn more. |
Hoss Mortgage Investors, Inc. and Todd Allan Hoss Broker-Dealer and Salesperson Registrations Suspended
On August 26, 2009, the Washington State Department of Financial Institutions Securities Division suspended the securities broker-dealer registration of Hoss Mortgage Investors, Inc. and the securities salesperson registration of Todd Allan Hoss (Hoss), the president and sole shareholder of Hoss Mortgage Investors, Inc. The Division also seeks a $100,000 fine from Hoss.
Hoss Mortgage Investors, Inc. is in the business of selling borrowers’ loans to investors. Typically, Hoss Mortgage Investors, Inc. received a deed of trust from a borrower to secure the loan and would assign all or a portion of the deed of trust to the investor to provide security for the investment.
The Securities Division charged Hoss and Hoss Mortgage Investors, Inc. with violating state securities anti-fraud and registration laws, alleging that Hoss Mortgage Investors, Inc. and Hoss:
- Misrepresented to certain investors that their investments would be protected by security interests without securing the investments in real estate
- Misrepresented to certain investors that their investments would be protected by a first position deed of trust when the investors received a lower priority real property interest
- Sold the same borrower loan to two different investors
-
Failed to disclose material facts, such as:
- the risks of the investments
- the intended use of the investment proceeds
- the identity and other information about the borrowers
- information about the properties that were purported to secure the investments
- financial information about HMI and its ability to honor guarantees made to investors
- Sold investments that required registration.
Hoss and Hoss Mortgage Investors, Inc. have requested a hearing on the Division’s allegations.
Investors May Contact DFI
Investors of Hoss Mortgage Investors, Inc. may contact Enforcement Attorney Janet So at 360-902-8771.
Enforcement Orders
-
Superseding Statement of Charges (PDF)*
Entered August 26, 2009 -
Statement of Charges (PDF)*
Entered July 8, 2009
* This document is a PDF file, and you will need Adobe Acrobat Reader to view it. If you don't already have Acrobat Reader installed on your computer, you may download it for free from Adobe.
