LoanSnap, an AI mortgage startup, has lost its operating license in Connecticut after violating a prior consent order with the state's Department of Banking. An investigation revealed multiple breaches of state law, including failure to file a change of address and disclose default judgments against the company. This action follows a series of lawsuits that plagued the startup, which originated just 42 loans in 2023 amid rising interest rates, a stark decline from nearly 1,300 loans valued at $500 million in 2021. LoanSnap's founders have not commented on the situation.