The Massachusetts Division of Banks issued a cease and desist order against an Avon-based mortgage lender for allegedly engaging in unlicensed and illegal mortgage lending that targeted immigrants.

"This unlicensed and illegal entity is placing consumers at considerable risk," Consumer Affairs and Business Regulation Undersecretary Barbara Anthony said in a statement. "This company is taking advantage of members of an immigrant population and taking sizable amounts of consumer funds with the promise of loans at questionable terms. Consumers should only use brokers and lenders that are properly licensed."

The division recently learned that American Dream Home Management Program (ADHMP) was soliciting Massachusetts consumers over the Internet to apply for mortgage through a program with interest rates as low as 2 percent with terms of 15, 20 or 30 years. The program also required consumers to pay a weekly membership fee of $75 until the loan was funded, 60 percent of which was retained for administrative costs, while the balance was escrowed and applied toward closing costs. The process could take between 3 and 14 months, the division said in a statement.

The division said the program is owned and operated by President Jean Philemond and managed by Director Hamid Mahmoodi and predominately served immigrant populations located in the Greater Boston and Brockton areas.  This company is not licensed to operate as either a mortgage broker or mortgage lender in Massachusetts and Philemond and Mahmoodi are not licensed as mortgage loan originators in Massachusetts, the division said.