Unlicensed Loan Officer

[fanelli19]

I have a friend in PA that obtained his mortgage from a loan officer that was operating without a license. This loan officer was hiding behind a net branch that had the license but compensated the loan officer as a 1099 independent contractor. This loan officer also conducted operations from an unlicensed location that was never disclosed to the Dept of Banking. All loan documents/disclosures contained the name of the W-2 employee at the licensed location and the licensed location's address was used on all documents/disclosures even though the loan was sold to my friend by the unlicensed loan officer at the unlicensed location.

Does my friend have a shot of having an attorney contact the bank's legal department to discuss possible litigation? What sort of chance does he have at asking for this loan to be forgiven entirely by the note holder? My friend also has various complaints about the entire process as well (ie: was promised his fees to be returned to him by the loan officer and they were not, the rate changed, he never received a hud-1 or copies of his disclosures, etc..).