Washington State Department of Financial Institutions

Consumer Alert:
Lenroc Services and Cornell Wallace

Unlicensed Loan Modification Services

July 20, 2011

The Washington State Department of Financial Institutions (DFI) warns consumers to verify the license of any lender with which they consider doing business.

DFI received a complaint from a Washington consumer relating to a transaction entered into with a business claiming to be a mortgage broker, Lenroc Services, and an individual claiming to be a loan originator, Cornell Wallace. The consumer alleged that he paid this business and this individual to modify the loan on his mortgage. The loan modification service was not provided, the fee was not refunded, and the consumer’s inquiries were ignored.

Lenroc Services and Cornell Wallace are not licensed by DFI, or registered to do business in Washington by either the Department of Revenue or the Washington Secretary of State.

DFI was unable to locate this business or this individual, or to verify their identities. Their conduct constituted unlicensed activity, and unfair or deceptive practices.

DFI strongly recommends that consumers deal only with those lenders that are properly licensed to conduct business. Consumers can determine whether lenders are properly licensed using the “Verify a License” feature on the Department’s website at www.dfi.wa.gov.

Report Violators

If you are suspicious of unlicensed activity by a mortgage broker or loan originator, please contact DFI at 1-877-RING-DFI (746-4334), or online at www.dfi.wa.gov.

If you feel you have been the victim of a loan scam, please contact the Federal Trade Commission at 1-877-FTC-HELP (382-4357), or online at www.ftc.gov.

If you feel you have been the victim of a loan scam involving the Internet, please contact the Internet Crime Complaint Center at www.ic3.gov.

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