Bay-Valley Mortgage Group Ordered to Cease and Desist Business

Last updated 2/4/2026 ORDER SUMMARY Consumer Services Division Case Number C-25-3973 Final Orders resolve investigations where companies or individuals have been charged and then the Department has imposed sanctions. Once DFI serves the Final Order on the individual or company, the company or individual has 10 days to petition (formally ask) the Director of DFI to reconsider. The company or individual can appeal in superior court. Name Bay-Valley Mortgage Group, Inc. dba Pacific Bay Lending Group and Valley View Home Loans NMLS #192103 Order/Agreement Number C-25-2973-26-FO01 Date issued 1/21/2026 What does this Final Order require? x Respondent must permanently cease and desist from conducting business in a manner that is injurious to the public or violates the Act. x Respondent must take the following affirmative actions: o Cease and desist any new business in Washington State, including originating any new residential mortgage loans for Washington State residents or property located in Washington State. o Cease and desist all foreclosure actions in the State of Washington. o Provide all books, records, and other information the Department has requested Respondent to provide that Respondent has not yet provided to the Department. o Cooperate with the Department and provide full access to information and records at the request of the Department. Need more information? You can contact the Consumer Services Division, Enforcement unit at (360) 902-8703 or csenforcecomplaints@dfi.wa.gov. Please remember that we cannot provide financial or legal advice to members of the public. We also cannot release confidential information.

FINAL ORDER C-25- 3973- 26-F O01 BAY-VALLE Y MORTGAGE GROUP, INC. D/ B/A PACIFIC BAY LE NDING GROUP AND VALLEY VIEW HOME LOANS 1 DEPARTME NT OF FINANCIAL INSTITUT IONS PO Box 41200 Olympia, WA 98504-1200 (360) 9 02-870 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 STATE OF WASHINGTON DEPARTMENT OF FINANCIAL INSTITUTIONS IN THE MATTER OF DETERMINING Whether there has been a violation of the Consumer Loan Act of Washington by: BAY-VALLEY MORTGAGE GROUP, INC. D/B/A PACIFIC BAY L ENDING GROUP and VALLEY VIEW HOME LOANS, N MLS #192103, Respondent. No. C-25-3973-26-FO01 FINAL ORDER TO CE ASE AND DES IST I. DIRECTOR’S CONSIDERAT ION Procedural History. This matter has come befor e the Di rector of the Depart ment of Financial Institutions of the State of Washington (“Dir ector”), pursuant to RCW 34.05.464. On May 30, 2025, the Director, through his designee, Consumer Se rvices Division Director Al i Higgs, issued a Temporary Order to Ceas e and Desist against Ba y-Valley Mortgage Group, Inc. D/B/A Pacific Bay Lending Group and Valley View Home Loans (“Respondent”). On May 30, 2025, the Depa rtment of Financial Institution (“De partment”) served Respondent with the Temporary Orde r to Cease and Desist and accompanying documents, sent by Fi rst-Class mail and Fe de ral Express overnight delivery. The Tem porary Order to C ease and D esist was accomp anied by a cover lett er dated May 30, 2025, a Notice of Opport unity to Defend and Opportunity for Hearing, and a blank Application for Adjudicative Hearing for Bay-Valley Mortgag e Group, Inc. D/B/A Pacific Bay Lending Group and Valley View Home Loan s. On or about June 19, 2025, Respondent filed an Application fo r Adjudicati ve Hearing. On June 23, 2025, the Department made a requ est to the Office of Administrativ e Hearings (“OAH”) to

FINAL ORDER C-25- 3973- 26-F O01 BAY-VALLE Y MORTGAGE GROUP, INC. D/ B/A PACIFIC BAY LE NDING GROUP AND VALLEY VIEW HOME LOANS 2 DEPARTME NT OF FINANCIAL INSTITUT IONS PO Box 41200 Olympia, WA 98504-1200 (360) 9 02-870 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 assign an Administrative Law Judge (“ALJ”) to schedule and condu ct a hearing on the Tempora ry Order to Cease and Desist. On June 25, 2025, OAH issued a Notice of Prehea ring Conference assignin g ALJ TJ Martin (“ALJ Martin”) to preside over prehea ring and hear ing pr oceedings and issue an Initial Or der; and scheduling a prehearing confer ence on June 30, 2 025, at 10:00 a.m. On June 30, 2025, representatives for the D epa rtment and Respondent’s co unsel attended a telephonic prehearing conferen ce. On June 30, 2 025, ALJ Martin issued a Prehearing Conferen ce Order and Notice o f Video Conference Hear ing sc heduling a hearing on July 3, 2025. On July 3, 2025, representatives for the Dep ar tment and Respondent’s cou nsel attended the hearing. On July 18, 2025, repres entatives for th e Department and R esponde nt’s counsel submitted closing briefs. On September 16, 2025, ALJ Mart in issued an Initial Order. On September 16, 2025, ALJ Martin emaile d 1 the Initial Order to Respondent and their counsel. Th is Initial Order affirmed the Temporary Order to Cease and D esist and made it permanent until su ch time as Respondent demonstrates sufficient policies, procedures, and controls to process Washi ngton loans, supervise its employees, and to place li ens on Washington prop erties, in compliance with Washington State statutes and regulations, relati ng to consumer home loans. Pursuant to RCW 34.05.464 and WAC 10-08-211, Re spondent had 20 days from the date of service of the Initial order to file a Petition for Revie w with the Office of the Director of Financia l Institutions. Respondent did not file a Petition for Review. A. Record Present ed. The record presented to t he Director for his revie w and for entry of a final decision included the following: 1. Temporary Order to Ceas e and Desist, cover letter dated May 30, 2025, N otice of Opportunity to Defend and Opportunity for Heari ng, and blank Application for Adjudicative Hearing, with documentation of service. 1 On or about Jul y 1, 2025, Respondent’s counsel opt ed in to receiving service via email.

FINAL ORDER C-25- 3973- 26-F O01 BAY-VALLE Y MORTGAGE GROUP, INC. D/ B/A PACIFIC BAY LE NDING GROUP AND VALLEY VIEW HOME LOANS 3 DEPARTME NT OF FINANCIAL INSTITUT IONS PO Box 41200 Olympia, WA 98504-1200 (360) 9 02-870 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2. Partial Applications for Adjudicative Hearing for Bay-Valley Mortgage Group, Inc. D/B/A Pacific Bay Lending Group and Valley View Home Loans. 3. Complete Applications for Adjudicativ e Hearing for Bay-V alley Mortgage Group, Inc. D/B/A Pacific Bay Lending Group and Valley View Home Loans. 4. Request to OAH for Assignment of Administrative Law Judge. 5. Notice of Appear ance for the Assistant A ttorney General, with documentation of service. 6. Notice of Preh earing Co nference, wit h documentat ion of service. 7. Prehearing Conf erence O rder, w ith documentation of service. 8. Notice of Video Conference He aring, with documentation of servic e. 9. An audio recording of th e Prehearing Conference. 10. Prehearing Conference O rder dated June 30, 2025, with documentation of service, that is a mail copy. 11. Respondent's Representative Email Opting into E-Service. 12. Prehearing Conference O rder dated July 1, 2025, with documentation of service, that is a mail copy. 13. Notice of Video Conference Hearing, with doc um entation of service, that is a mail copy. 14. Bay Valley Mortgage Group Exhibit List. 15. Bay Valley Mortgage Group Exhibit A. 16. Bay Valley Mortgage Group Answer to D FI TCD. 17. Department’s Exhibit List. 18. Department’ s Witness List. 19. Department’s Exhibits 1-18. 20. An audio recording of the hearing.

FINAL ORDER C-25- 3973- 26-F O01 BAY-VALLE Y MORTGAGE GROUP, INC. D/ B/A PACIFIC BAY LE NDING GROUP AND VALLEY VIEW HOME LOANS 4 DEPARTME NT OF FINANCIAL INSTITUT IONS PO Box 41200 Olympia, WA 98504-1200 (360) 9 02-870 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 21. Department's Email regarding redacted exhibits with redacted exhibits 10, 14, and 16. 22. Department’s E xhibit 10 updated. 23. Department’s E xhibit 14 updated. 24. Department’s E xhibit 16 updated. 25. Department’s Closing Brief. 26. Respondent’s Closing Brief. 27. Initia l Order. B. Factual Findings and Grounds for Order. Pursuant to RCW 34.05.461, the Director hereby adopts the Initial Order, which is attached hereto. II. FINAL ORDER Based upon the foregoing, and the Director havin g considered the reco rd and being otherwise fully advised, NOW, THEREFORE: A. IT I S HEREBY ORDERED, That: 1. Respondent Bay-Valley Mort gage Group, Inc. D/B/A Pacific Bay Lending Group and Valley View Home Loans perman ently cease and desist from conducti ng business in a manner that is injurious to the public or violates the Act. 2. Respondent Bay-Valley Mort gage Group, Inc. D/B/A Pacific Bay Lending Group and Valley View Home Loans take the following affirmative actions: a. Cease and desist any new busines s in Washington State, including originating any new re sidential mortgage loans for Washington State residents or property located in Washington State. b. Cease and desist all foreclosure act ions in the St ate of Washington. c. Provide all books, records, and othe r information the Depa rtment has requested Respondent to provide that Respondent has not yet provided to the Departme nt. d. Cooperate with the Depa rtment and provide full access to information and records at the request of the Department.

FINAL ORDER C-25- 3973- 26-F O01 BAY-VALLE Y MORTGAGE GROUP, INC. D/ B/A PACIFIC BAY LE NDING GROUP AND VALLEY VIEW HOME LOANS 5 DEPARTME NT OF FINANCIAL INSTITUT IONS PO Box 41200 Olympia, WA 98504-1200 (360) 9 02-870 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 The affirmative actions d o not prohib it Respondent from continuing to service residential mor tgage loans related to pr operty located in Washington State; f rom returning, remitting, or transferring funds it owes t o loan borrowers, holders, or investors; or from funding or otherwise pr ocessin g loans that, as of the date of this order, are in Respondent’s pipeline, so long as Respondent is able to a nd does fund or process those loans while meeting its legal and contract ual obligations to all affected pa rties, includi ng agencies, borrowers, holders, lenders, and investors. B. Reconsideration. Pursuant to RCW 34.05.470, Respondent Bay- Valley Mortgage Group, Inc. D/B/A Pacific Bay Lending Group and Valle y View Hom e Loans has the right to file a Petition for Reconsideration stati ng the specific gr ounds upon which relief is requested. Th e Petition must be filed in the Of fice of the Direc tor of the Department of Financ ial Institutions by courier at 150 Israel Road SW, Tumwater, Washington 98501, or by U.S. Mail at P.O. Box 41200, Olympia, Washington 98504-1200, within ten (10) days of s e rvice of the Final Order upon Respondent Bay- Valley Mortgage Group, I nc. D/B/ A Pacific Bay Lending Group and Valley View Home Loans. The Petition for Rec onsideration shall not stay the e ffectiveness of this or der nor is a Petition for Reconsidera tion a prerequisite for seeking judic ial review in this matter. A timely Petition for Re consideration is dee med denied if, within twenty (20) days f rom the date the petition is f iled, the agency does not (a) dispose of the petition or (b) serve the parties with a written notice spe cifying the date by which it will ac t on a petition. C. Stay of Order. The Director has deter mined not to consider a Petition to Sta y the effectiveness of this order. Any such r equest s should be made in connection with a Petition for Judicial Review made under chapter 34.05 RCW and RCW 34.05.550. D. Judicial Review. Responde nt Bay-Valley Mortga ge Gr oup, Inc. D/B/A Pacific Bay Lending Group and Valley View Home Loans ha s the ri ght to petition the superior court for judicial review of this agency act ion under the provisions of chapter 34.05 RCW. For the requirements fo r filing a Petition for Judicial Review, see RCW 34.05.510 and sections following.

FINAL ORDER C-25- 3973- 26-F O01 BAY-VALLE Y MORTGAGE GROUP, INC. D/ B/A PACIFIC BAY LE NDING GROUP AND VALLEY VIEW HOME LOANS 6 DEPARTME NT OF FINANCIAL INSTITUT IONS PO Box 41200 Olympia, WA 98504-1200 (360) 9 02-870 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 E. Service. For purposes of filing a Petition for Re consideration or a Petition for Judicia l Review, service is effecti ve upon deposit of this or der in the U.S. mail, declaration of service attached h ereto. DATED this 21 st day of January, 2026. STATE OF WAS HINGTON DEPARTMENT OF FINANCIAL INSTITUT IONS _ __________________ CHARLES E. CLAR K Director _ _ _ _ _ _ _ _ _ C HAR LES E C L AR K

TEMPORAR Y ORDER TO CEASE AND DESIST C-25- 3973- 25-T D01 BAY-VALLEY M ORTGAGE GROUP, INC. 1 DEPARTME NT OF FINANCIAL INSTITUT IONS Divis ion of C onsum er Ser vices PO Box 41200 Olympia, WA 98504-1200 (360) 902. 8703 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 STATE OF WASHINGTON DEPARTMENT OF FINANCIAL INSTITUTIONS DIVISION OF CONSUMER SE RVICES IN THE MATTER OF DETERMINING Whether there has been a violation of the Consumer Loan Act of Washington by: BAY-VALLEY MORTGAGE GROUP, INC. D/B/A PACIFIC BAY L ENDING GROUP and VALLEY VIEW HOME LOANS, NMLS #192103, Respondent. No. C-25-3973-25-TD01 TEMPORARY ORDER TO CEASE AND DES IST THE STA TE OF WA SHI N GTO N T O: BAY-VALLEY M ORTGAGE GROUP, INC. COMES NOW the Direc tor of t he Washi ngton Sta te De partmen t of Financ ial I nstitutions, by and through hi s designee Ali H iggs, Divi sion of Consum er Service s Director, and fi nding that the public is likely to be substan tially injured by delay in i ssuing a cease and desist orde r, enters this tem porary order to cease and de sist pursuant to chapter 31.0 4 RCW, the Consumer Loa n Act (Act), based on the following find ings: I. FACTUAL FINDING S 1.1 Respondent. Bay-Valley Mortgage Group, Inc. D/B/A Pacific Bay Lendi ng Group and Valley View Home Loans (Respondent) w as licensed by the Depar tment of Financial Institutions of the State of Washington (Department) to conduct business as a consume r loan company on or about May 22, 2017, and continues to be licensed to date. 1.2 Engaged in Prohibited Practices. Respondent does not have sufficient policies, procedures, or cont rols in place to proc ess Washingt on loans, to supervise its employees, or to place liens on Washington properties. With in the last two years, Respondent originated at least one residential mor tgage loan in Washington that conta ined multiple error s and inconsistencies regarding the type of the loan, the income of the bor rower, a nd whether the borrower would make the property

TEMPORAR Y ORDER TO CEASE AND DESIST C-25- 3973- 25-T D01 BAY-VALLEY M ORTGAGE GROUP, INC. 2 DEPARTME NT OF FINANCIAL INSTITUT IONS Divis ion of C onsum er Ser vices PO Box 41200 Olympia, WA 98504-1200 (360) 902. 8703 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 their primary residence. Respondent and its em ployees did not corr ectly complete the loan documents, including the loan application, loan estimate, and closing docu ments. Additionally, Respondent and its employees did not correctly id entify the property owner and did not notify or receive consent f rom all required pa rties before pla cing a lien on the propert y. II. GROUNDS FOR ENTRY OF ORDER 2.1 Prohibited Practices. Based on the Factual Findings set forth in Section I above, Respondent is in violation of RCW 31.04.027(1)(a) for directly or i ndirectly employing any scheme, device, or artifice to d efraud or mislead any pe rson; RCW 31.04.027(1)(b) for directly or indirectly engaging in any unfair or deceptive act or pr actice toward any p erson; RCW 31.04.027(1)(c) for directly or indirectly obtaining property by fra ud or misrepresent ation; WAC 208-620-550(11) for willfully filing a lien on a property without the legal basis to do so; and WAC 208-620-550(24) for misreprese nting a residential mortga ge loan as a business purpose loan. 2.2 Financial Responsibilit y. Based on the Factual Findings se t forth in Section I above, Respondent does not appear to meet the sta ndards set forth in RCW 31.04.055(1)(e) and WAC 208- 620-370(2), which require Responde nt’s financial responsibility be such as to command the confidence of the community and to warrant a be lief that the business will be operat ed honestly, fairly, and efficiently within the purposes of the A ct. 2.3 Substantial Injury to the Public. Respondent’s violations of the Act are such that the public is likely to be substa ntially injured by the delay in issuing a cease and desist order. It also appears to the Director that Res pondent is conduct ing business in an injurious manner or is violating the Act. III. AUTHORITY TO ISSUE ORDER 3.1 Authority to Issue Temporary Order to Cease and Desist. Pursuant to RCW 31.04.093(8), whenever t he Director determines th at the public is likely to be s ubstantially injured by

TEMPORAR Y ORDER TO CEASE AND DESIST C-25- 3973- 25-T D01 BAY-VALLEY M ORTGAGE GROUP, INC. 3 DEPARTME NT OF FINANCIAL INSTITUT IONS Divis ion of C onsum er Ser vices PO Box 41200 Olympia, WA 98504-1200 (360) 902. 8703 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 delay in issuing a cease and desist order, the Di rector may immediately issue a tempora ry cease and desist order. The order m ay direct the licensee to di scontinue any violation of the Act, to take such affirmative action as is necessary to comply with the Act, and may include a summary suspension of the licensee’s license and may order the lic ensee to immediately cease th e conduct of business unde r the Act. Additionally, pursuant to RCW 31.04.165(2), if it appe ars to the Director that a license e is conducting business in an injurious manner or is violating any provisi on of the Act, the Director m ay order or dire ct the discontinuance of a ny such injurious or illegal prac tice. IV. ORDER Based on the above Factual Findings, Grounds fo r Entry of Order, and Authority to Issue Temporary Order to Cea se and De sist, and pursuant to RCW 31.04.165, th e Director determines th at the public is likely to be substantially harmed by a delay in entering a ceas e and desist order. Therefore, the Directo r OR DERS th at: 4.1 Respondent shall immediately cease and de sist from conducting business in a manner that is injurious to the public or violates the Act. 4.2 Respondent shall take the fo llowing affirmative actions: A. Cease and desist any new business in Was hington State, including originating any new residential mortgage loans for Washi ngton State residents or p roperty located in Washington State. B. Cease and desist all foreclosure ac tions in the State of Washington. C. Provide all books, records, and other information t he Departme nt has reque sted Respondent to provide that Respondent has not yet pr ovided to the Department. D. Cooperate with the Department and provide full access to information and records at the request of the Dep artment. Section 4.2 does not prohibit Respondent fro m continuing to service residential mortgage loans related to property locat ed in Washington State; from retur ning, remitting, or transferring funds it owes to lo an borrowers, holders, or invest ors; or from funding or otherwise processing loans that, as of the date of this order, are in Respondent’s pipeline, so long as Respondent is able to and does fund or process those

TEMPORAR Y ORDER TO CEASE AND DESIST C-25- 3973- 25-T D01 BAY-VALLEY M ORTGAGE GROUP, INC. 4 DEPARTME NT OF FINANCIAL INSTITUT IONS Divis ion of C onsum er Ser vices PO Box 41200 Olympia, WA 98504-1200 (360) 902. 8703 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 loans while meeting its le gal and contractual obliga tions to all affe cted parties, including agencies, borrowers, holders, lend ers, and investors. 4.3 This order shall ta ke effect immediate ly and shall rema in in effect unle ss set aside, limited, or suspended in writing by a n authorized court. NOTICE PURSUANT TO CHAPTER 31. 04 RCW, YOU ARE ENTITLED TO A HEARING WI THIN FOURTEEN DAYS OF REQUEST TO DETERMINE WHETHER THI S ORDER SHALL BECOME PERMANENT. IF YOU DESIRE A HEARING, THEN YOU MU ST RETURN THE ATTACHED APPLICATION FOR ADJUDICATIVE HEARING INCORPORATED HEREIN BY THI S REFEREN CE. FAILURE TO COMPLETE AND RETU RN THE APPLICATI ON FOR ADJUDICATIVE HEARING FORM SO THAT IT IS RECEIVED BY THE DEPARTMENT OF FINANCI AL INSTITUTIONS WITHIN TWENTY DAYS OF THE DATE THAT THI S ORDER WAS SERVED ON YOU WILL CONSTITUTE A DEFAULT AND WILL RESULT IN THE LOSS OF YOUR RIGHT TO A HEARING. SER VICE ON YOU IS DEFINED AS POSTING IN THE U.S. MAIL, POSTAGE PREPAID, TO YOUR LAST KNOWN ADDRESS. BE ADVI SED THAT DEFAULT WILL RESULT IN THIS ORDER TO CEASE AND DESIST BECOMI NG PERMANENT ON THE TWENTY-FI RST (21ST) DAY FOLLOWING SERVICE OF THIS ORDER UPON YOU. // // // // // //

TEMPORAR Y ORDER TO CEASE AND DESIST C-25- 3973- 25-T D01 BAY-VALLEY M ORTGAGE GROUP, INC. 5 DEPARTME NT OF FINANCIAL INSTITUT IONS Divis ion of Cons um er Ser vices PO Box 41200 Olympia, WA 98504-1200 (360) 902. 8703 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 DATED this 30t h day of May, 2025 _ ____________________ ALI HIGG S, Di rec tor Division of Consumer Services Department of Financial I nstitutions Presented by: ___________________ ________ MEGAN GUTHRIE Financia l Legal Examiner Reviewed by: __ ________ DREW STILLMAN Financial Legal Exa miner Supervisor Approved by: ____________________________ KENDALL FREED Enforcement C hief _ _ __ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ __ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _______ _ M EGAN G UT U U U U U U U U U U U U U U U U U U U U U U U U U U HR IE _ A LI HI G GS S S S S S S S S S S S S S S S S S S S S S S S S Di r