The Office of Thrift Supervision has issued a cease-and-desist order against AmTrust Financial Corp based in Cleveland Ohio. The effective date of the order is November 19, and you can see the PDF here. The order specifically prohibits the bank from making any loans for land acquisition and development, while still allowing the bank to originate consumer or residential mortgage loans, or home equity lines of credit (HELOCs).

AmTrust Financial Corp of Cleveland has been ordered by a government regulator not to take on new loans or extend new lines of credit for land acquisition and development until it has more cash in its coffers.

The company must also revise its current business plan by the end of the month.

Crain’s Cleveland Business cites cease and desist orders from the federal Office of Thrift Supervision that say AmTrust engaged in unsafe and unsound banking practices.

The orders do not apply to consumer or residential mortgage loans, or home equity lines of credit.

Crains says the orders also prohibit AmTrust from paying dividends without approval, and from making golden parachute payments or adding new board members without 30 days notice.

AmTrust was ranked as the 20th-largest residential mortgage originator in the nation during 2007, according to Inside Mortgage Finance. The bank has 36 branches in Ohio and other branches in Florida and Arizona.

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