Mortgage CEO Barred in 21 States After Education Fraud Settlement Shakes the Industry
A multistate enforcement action has shaken the mortgage industry as Patrick Terrance Donlon, CEO of Trusted American Mortgage, agreed to a sweeping settlement that bans him from operating as a mortgage loan originator in 21 states—19 of them permanently. The Conference of State Bank Supervisors (CSBS) announced the agreement, which also includes a $31,000 penalty and strict conditions limiting Donlon’s involvement in financial services leadership roles for two years.
A Deep Dive Into the Allegations
According to settlement documents filed with the California Department of Financial Protection & Innovation, Donlon disputed the accusations but chose to resolve the matter to avoid the “time, expense, and uncertainty” of individual investigations across multiple states.
The allegations centered on a serious breach of the SAFE Act: Donlon was accused of having another person complete 22 pre‑licensing courses and three continuing education courses on his behalf—an unmistakable violation of federal and state licensing standards.
The CSBS and the American Association of Residential Mortgage Regulators coordinated the investigation after receiving a tip in early 2025, prompting a multistate response through the Nationwide Multistate Licensing System (NMLS).
Where the Ban Applies
The action involved 21 states, led by regulators in Arkansas, Colorado, Florida, Iowa, Kansas, and Texas. Other participating states include Arizona, California, Idaho, Illinois, Maryland, Michigan, Minnesota, Montana, New Mexico, Ohio, Oklahoma, Oregon, South Carolina, and South Dakota.
Donlon is permanently barred from the mortgage industry in 19 of those states. Only Colorado and Florida—where he may reapply in two years—left a pathway for reinstatement, contingent upon penalty payments and completing additional verified education.
Financial Penalties and Professional Fallout
Colorado and Florida will each receive $7,000 from the settlement, while the remaining participating states receive $1,000 each. Maryland and New Mexico—where applications were pending—are excluded from the financial distribution.
Beyond the bans, Donlon is prohibited from serving as a control person or qualified individual for any NMLS‑registered entity for two years. Trusted American Mortgage has already removed him from those internal roles.
“We require that licensed professionals complete their continuing education to ensure our licensees have the highest levels of competence and ethics,” said Susana Soriano, Acting Director of the Illinois Division of Banking. “With this action, the residential real estate market in Illinois has been protected.”
A Growing Trend of Education Fraud Crackdowns
This is not the first time CSBS has coordinated widespread actions targeting education fraud. In 2022, more than 440 loan officers settled claims with 44 state agencies for falsifying continuing education. Regulators have made it abundantly clear: education shortcuts will not be tolerated.
A Critical Reminder for Industry Professionals
For mortgage loan originators, this case reinforces the importance of legitimate education—both legally and ethically. Verified pre‑licensing and continuing education aren’t mere checkboxes; they are the cornerstone of safe, compliant lending practices.
At Cameron Academy, we understand how crucial it is for professionals to meet their education requirements truthfully and confidently. Our approved mortgage education programs are built to keep you compliant, protected, and prepared—without shortcuts or question marks.
For more details, view the original report at National Mortgage News:
Read the full article
More Articles
Getting licensed or staying ahead in your career can be a journey—but it doesn’t have to be overwhelming. Grab your favorite coffee or tea, take a moment to relax, and browse through our articles. Whether you’re just starting out or renewing your expertise, we’ve got tips, insights, and advice to keep you moving forward. Here’s to your success—one sip and one step at a time!
A growing share of American homeowners now carry mortgage rates above 5%—a dramatic shift that’s reshaping refinancing, inventory, and buyer behavior nationwide. With more than 30% of borrowers locked into rates over 5% and 20% above 6%, the market is split between owners holding on to low pandemic‑era loans and new buyers taking on higher‑rate mortgages. Federal efforts to push rates down could unlock millions of refinancing opportunities, while buyers see only modest monthly savings. For real estate professionals, understanding these rate dynamics is crucial as they increasingly drive inventory levels, affordability, and market activity.
New Moody’s data shows commercial real estate deal volume slipped 20% in December, marking a second monthly decline. Yet the full year tells a different story: 2025 ended with a 17% gain, signaling a quiet but resilient recovery. The biggest surprise came from the office sector, which posted a 21% jump in activity as return‑to‑office trends and AI‑driven job growth boosted demand. Multifamily, retail, and alternative assets like data centers also saw strong momentum, giving real estate professionals a market full of fresh opportunities heading into 2026.
Florida drivers and industry professionals are heading into 2026 with good news: auto insurance rates are dropping across the state as the market shows strong signs of stabilization. USAA leads the latest wave with a 7% average rate decrease expected in May 2026, saving members more than $125 million annually. They join several major insurers — including State Farm, Progressive, AAA, Allstate, and Florida Farm Bureau — all approving significant reductions. Officials credit recent legislative reforms, especially tort reform, for the improved loss ratios and renewed insurer confidence. With both auto and home insurance markets strengthening, Florida’s real estate, mortgage, and insurance professionals can expect more consumer confidence, smoother transactions, and expanding career opportunities.
New data from Eye On Housing and the NAHB shows the U.S. remains short more than 1.2 million housing units, keeping pressure on both rents and home prices. Record‑low vacancy rates, slow single‑family construction, and restrictive zoning continue to fuel intense competition in 2024. Major metros like Chicago, New York, and Atlanta face some of the deepest deficits, and the true nationwide shortfall may be even higher when accounting for overcrowding and aging homes. For real estate professionals, the ongoing shortage means sustained demand, tighter inventory, and major opportunities for those who understand the evolving market.
Top real estate coach Jason Pantana says the divide between agents today isn’t about who has “tried” AI — it’s about who is immersed in it. In a new HousingWire interview, he explains why AI isn’t a gimmick but a full business system that amplifies output, improves authenticity, and reshapes how clients search for agents. From prompt mastery to AI‑driven visibility on Google, Pantana reveals how agents who commit even 15 minutes a day to learning AI are already outperforming those who hesitate.
Dallas–Fort Worth’s commercial real estate market closed 2025 with a split personality. Industrial dominated with massive new deliveries and soaring leasing demand, retail held steady with some of the market’s strongest fundamentals in years, and office continued to falter under remote‑work pressures. High vacancies, weak absorption, and rising demand for top‑tier space show the sector’s ongoing reset. Meanwhile, industrial and retail strength position the Metroplex for another powerhouse year heading into 2026.
