Housing Finance Firm Settles SEC Charges for Unregistered Broker Activity Involving Munis

A housing finance firm settled SEC charges for acting as an unregistered broker in connection with municipal bond offerings.

In the order, the SEC found that from June 2020 to December 2025, the firm provided broker services to four institutional investors across 31 municipal bond offerings, raising more than $1.16 billion to finance 27 affordable multifamily housing projects. The SEC stated that the firm negotiated the structure and pricing of the bonds with developers, solicited investors to purchase the bonds, and advised investors on the merits of the bonds.

The Commission found that the firm received transaction-based compensation in the form of an origination fee calculated as a percentage of the principal amount of the bonds at closing. The order describes two examples: a 2024 Arizona development, where the fee was 0.75 percent, and a 2020 Texas development, where it was 1.25 percent.

The SEC found that the firm violated the broker-dealer registration requirements of Exchange Act Section 15(a)(1) ("Registration and regulation of brokers and dealers").

The firm agreed to a cease-and-desist order and a $100,000 civil penalty.