MANCHESTER, N.H. (AP) – A mortgage company that does business in New Hampshire, Maine and Massachusetts agreed to pay $425,000 as part of a settlement announced Monday by New Hampshire banking regulators.

The Mortgage Specialists, its president Michael Gill and compliance officer Lisa Tracy also agreed to submit to an independent review.

The state banking department accused the company of more than 60 violations, including forging signatures and destroying documents. Massachusetts banking officials also accused the company of unfair and deceptive business practices.

Last month, Gill admitted to paperwork mistakes. But he denied fraud was involved in any of the company’s 100,000 loans processed over 18 years of business.

“There was no defrauding of customers,” Gill said in July. “Not one customer got defrauded a penny, ever.”

The company’s attorney, Alex Walker, said Mortgage Specialists will hire a compliance officer to oversee mortgage lending in New Hampshire and Massachusetts.

“We’re very pleased to have resolved this matter on favorable terms with the regulators in New Hampshire and in Massachusetts; we reached an agreement on Friday,” Walker said.

The company will also submit to an independent review of all loan files processed since Aug. 1, 2007. Randomly selected loan documents from March 25, 2005, through July 31, 2007, will also be independently reviewed.


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