Loan firm charged with fraud settles in N.H., Mass.

The Mortgage Specialists, a mortgage company with offices in New Hampshire and Massachusetts, has agreed to pay more than $700,000 to settle allegations of fraud in two states.

In separate settlements, the company has agreed to pay fines of $425,000 for violations in New Hampshire and

New Hampshire banking officials accused the company last month of forging signatures, destroying documents and breaking at least six other industry laws. Massachusetts quickly followed with allegations of falsifying income information and altering loan documents.

The New Hampshire Banking Department said the deal also requires Mortgage Specialists to allow old loan files to be inspected for violations.

"The settlement appropriately sanctions this company for the violations we uncovered," banking department commissioner Peter Hildreth said in the statement.

Alex Walker, the attorney who represented Mortgage Specialists, said, "The company is pleased that the process in New Hampshire and Massachusetts is resolved so the company can get back to focusing its efforts on its core business and rebuilding the confidence of its customers."

The Mortgage Specialists is based in Plaistow, but also has branches in Nashua, Manchester, Salem, Windham, Somersworth and in Worcester and Peabody, Mass. The company also does business in Maine.