(WTNH) — First Alliance Lending LLC in East Hartford is closing its doors after 15 years.
The mortgage lender is blaming the state, saying the Department of Banking dragged out an investigation into an aspect of its business model.
The company says the investigation revolves around an interpretation with which other states disagree.
John DiIorio, founder and CEO, told News 8, “First Alliance is dead. There is no path forward for this company. We have worked very hard in good faith with both the banking department and the DECD to find a path forward and simply it can’t be done.”
First Alliance once employed 178 people; now it is down to five.
In a statement, the Department of Banking responded by saying, “The Department never looks to limit access and choices for consumers. It is the Department’s goal to apply the law equitably to all regulated entities so they have the opportunity to thrive and prosper here in Connecticut.”
Dilorio claims they will come back. Plans for new entity are already in place.
They are looking to move to Rhode Island, Massachusetts, New Hampshire production and operations staff as well as small staff in Texas.