Still want to argue with me about the legality of Real Estate deals involving cash back at closing? That's fine because now I am going to bring the Arizona Department of Financial Institutions' superintendent, Felecia Rotellini, to the table. Rotellini's department'which is responsible for the licensing, supervision and regulation of state chartered financial institutions and enterprises'just shut down a Mesa, Arizona, mortgage firm with 75 branch offices for, among other things, promoting cash-back deals. From reporter Catherine Reagor at The Arizona Republic:

Regulators have shut down Mesa-based Eagle First Mortgage and its more than 75 Valley branches, citing illegal lending practices. The Arizona Department of Financial Institutions pulled the license of the mortgage firm and its broker, David Sanchez, last week. Regulators described more than 100 illegal money transactions, loan activities and hiring practices. The firm, one of the largest that Financial Institutions has shut down, has until March 14 to finish any outstanding loans and close its doors.

"Eagle First is surrendering its license as a result of multiple and repeat violations," said Felecia Rotellini, superintendent of the Department of Financial Institutions, which regulates mortgage firms. A wave of mortgage fraud started spreading across the Valley last year that could cost lenders millions of dollars and erode values and confidence in Arizona's real estate market and economy.

Most of the fraud is coming from cash-back deals that involve obtaining a mortgage for more than a home is worth and pocketing the extra money. But there are other types of fraud such as faking and forging documents and lying about income and other personal information for loans.

For more on this situation, read Mortgage Company Shut Down.