NYDFS reported on November 16, 2018 that Franklin First Financial Ltd. had terminated employees and stopped originating loans. The regulator issued a cease-and-desist order addressing New York mortgage business and the preservation of records.
Read the source: NYDFS · November 16, 2018 cease-and-desist order (PDF)
Read the date and scope together
The order describes the situation known to the regulator on that date. Its immediate mortgage-activity restriction was for a period not exceeding 30 days and concerned New York residential property, with stated exceptions. It should not be paraphrased as a timeless nationwide ban or a bankruptcy judgment.
Closure, servicing and ownership are different
Stopping new loans does not itself cancel borrowers’ debts or establish where a loan portfolio went. Servicing, ownership of a mortgage, release of a lien, and corporate dissolution are separate questions that require their own records.
Your next step
For a payment, payoff or escrow question, identify the company currently handling the mortgage from your latest verified statement. For the company’s regulatory history, read the full order rather than an undated summary or an old advertisement.
Continue: Old Franklin First Mortgage? How to Find Your Servicer
Frequently asked questions
Did the closure erase existing mortgages?
The order is not evidence that existing borrowers’ mortgage obligations were cancelled.
Was this a bankruptcy filing?
No. The linked document is a regulator’s cease-and-desist order, not a bankruptcy petition.
Sources
Read the original documents and company pages behind this guide.
- NYDFS · November 16, 2018 cease-and-desist order (PDF) www.dfs.ny.gov · reviewed October 16, 2026
- CFPB · Mortgage lender and servicer: different roles www.consumerfinance.gov · reviewed October 16, 2026
