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 federal judge has denied class‑certification in the high‑stakes Batton commission lawsuit, delivering a temporary win for NAR and major brokerages while leaving the door open for plaintiffs to try again. With as much as $3.6 billion in potential damages on the line and nearly 80% of the proposed class now disqualified due to conflicts with earlier settlements, the case stands at a pivotal moment. Real estate professionals nationwide — especially in Florida — should watch closely, as the ruling could shape the future of buyer‑agent compensation.
Florida homeowners are paying nearly double the national average for insurance, with premiums now reaching $5,838 a year and denied claims topping 40 percent. Residents report tripled rates, underpaid claims, and mounting financial strain, pushing lawmakers in Tallahassee to propose caps on rate hikes, tax breaks for storm‑proof upgrades, and tighter oversight of insurers. These developments are reshaping real estate and insurance conversations across the state as professionals brace for major industry shifts.
Berkshire County closed Q3 2025 with strong momentum as sales, dollar volume, and buyer competition all climbed year‑over‑year. Inventory showed slight improvement but remains far below demand, keeping the market tilted toward sellers. Single‑family homes and condos led the surge, while multifamily, land, and commercial sectors showed mixed performance. The region continues to stand out as one of New England’s most resilient real estate markets heading into 2026.
Florida homeowners now face the highest insurance burdens in the nation, with average premiums topping $5,800 per year—roughly $3,000 above the national average. As rates triple for some residents, more Floridians are skipping coverage altogether, while denied claims and slow payouts add to the frustration. With over 40 percent of claims closing with no payment and lawmakers battling over reform in Tallahassee, the crisis is reshaping budgets, homebuying decisions, and the real estate industry statewide.
Global capital is surging back into real estate—and this time, investors want more control. Colliers’ 2026 Global Investor Outlook reveals a major shift toward direct investments, joint ventures, and hands‑on strategies as money moves across North America, Europe, and the booming Asia‑Pacific markets. Data centers are now the top‑funded asset class, offices are staging a comeback, and adaptive reuse is reshaping cities worldwide. For real estate and finance professionals, the message is clear: opportunity is accelerating, and those with the right education and licensing will be at the center of the action.
The Fed’s recent rate cuts should have offered relief to commercial real estate—but long-term borrowing costs haven’t budged. While short‑term rates are falling, stubborn long‑term yields, broken deal math, and a trillion‑dollar refinancing wave are keeping the market frozen. For investors and professionals across Florida and the nation, understanding this disconnect is key to navigating the opportunities and risks emerging in today’s shifting CRE landscape.
