PHOENIX - A Phoenix mortgage firm has been accused by regulators of securing loans from illegal branches at swap meets, malls, carnicerias, a Wal-Mart, a Home Depot and a couple of Food City stores.
The Arizona Department of Financial Institutions has filed a complaint against Pacific Gold Mortgage Group and its owner, Alejandro Assam.
The company is also accused of misleading at least 134 borrowers about interest rates and fees on loans.
Assam couldn't be reached for comment.
A hearing has been scheduled for Aug. 15 to determine whether the firm will lose its license and possibly pay a fine.
Arizona now ranks seventh among states with the greatest amount of mortgage fraud, moving past the 23rd spot it held in 2006.
This is the highest Arizona has placed on the Mortgage Asset Research Institute's annual fraud survey.
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