Consent Order  Community Mortgage Services, Inc.

Date:	01/22/2016
Organization:	Division of Banks
Docket Number:	2015-009
Location:	Lowell, MA

Community Mortgage Services, Inc.

COMMONWEALTH OF MASSACHUSETTS

Suffolk, SS.

COMMISSIONER OF BANKS
MORTGAGE BROKER
LICENSING
Docket No. 2015-009

CONSENT ORDER

In the Matter of

COMMUNITY MORTGAGE SERVICES, INC.
Mortgage Broker License No. MB4853
Lowell, Massachusetts

and

VICTOR VUTHY VANG, Individually
Mortgage Loan Originator License No. MLO9098

WHEREAS, COMMUNITY MORTGAGE SERVICES, INC. (“Community Mortgage” or the “Corporation”), a licensed mortgage broker under Massachusetts General Laws chapter 255E, section 2, and Victor Vuthy Vang, a licensed mortgage loan originator under Massachusetts General Laws chapter 255F, section 2, have been advised of their right to Notice and Hearing pursuant to Massachusetts General Laws chapter 30A, section 10, and having waived those rights, entered into a STIPULATION AND CONSENT TO THE ISSUANCE OF A CONSENT ORDER (“Consent Agreement”) with representatives of the Division of Banks (Division) dated January 22, 2016, whereby, solely for the purpose of settling this matter and expressly without admission of fault or liability, Community Mortgage and Victor Vuthy Vang agree to the issuance of this CONSENT ORDER (“Consent Order”) by the Commissioner of Banks (“Commissioner”);

WHEREAS, the Division of Banks (“Division”) has jurisdiction over the licensing and regulation of persons and entities engaged in the business of a mortgage broker in Massachusetts pursuant to Massachusetts General Laws chapter 255E, section 2 and its implementing regulation 209 CMR 42.00 et seq.;

WHEREAS, the Division, through the Commissioner, also has jurisdiction over the licensing and regulation of persons engaged in the business of a mortgage loan originator in Massachusetts pursuant to Massachusetts General Laws chapter 255F, section 2 and its implementing regulation 209 CMR 41.00 et seq.;

WHEREAS, Community Mortgage, at all relevant times, has been a Massachusetts corporation doing business in the Commonwealth with its main office located at 1075 Westford Street, Unit 109, Lowell, Massachusetts;

WHEREAS, Victor Vuthy Vang, at all relevant times has been the President and sole owner of Community Mortgage;

WHEREAS, Victor Vuthy Vang is licensed by the Commissioner as a mortgage loan originator under Massachusetts General Laws chapter 255F, section 2;

WHEREAS, on April 15, 2015, pursuant to the authority granted under Massachusetts General Laws chapter 255E, section 8, the Division commenced an examination of the books, accounts, papers, records and files maintained by Community Mortgage to evaluate the Corporation's compliance with the laws and regulations applicable to the conduct of a mortgage broker in Massachusetts (“2015 examination”);

WHEREAS, on May 13, 2015, while the Division’s examination was ongoing, the Division issued a Temporary Order to Cease and Desist Docket No. 2015-009 (“Temporary Order”) against Community Mortgage and Victor Vuthy Vang, individually;

WHEREAS, the Division’s Report of Examination (the “Report”), issued to Community Mortgage on or about May 27, 2015, presented the findings of the 2015 examination;

WHEREAS, on or about June 1, 2015, Community Mortgage and Victor Vuthy Vang, through counsel, filed a Response to the Temporary Order, whereby Community Mortgage and Victor Vuthy Vang denied and contested the Division’s findings as set forth in the Temporary Order. By the Response, Community Mortgage and Victor Vuthy Vang further reserved the right to proceed to an administrative hearing in accordance with Massachusetts General Laws chapter 30A;

WHEREAS, on or about July 10 2015, Community Mortgage and Victor Vuthy Vang submitted a response to the Report;

WHEREAS, on August 11, 2015, Community Mortgage and Victor Vuthy Vang, accompanied by counsel, appeared at the Division’s office for an informal conference to discuss the matters raised by the Report and the Temporary Order;

WHEREAS, Community Mortgage and Victor Vuthy Vang through counsel cooperated with the Division in producing information, responding to questions relevant to the examination, submitting a detailed response to the Report, attending a conference with the Division, and conferring with the Division on several dates;

WHEREAS, the parties now seek to resolve by mutual agreement all matters identified in the Temporary Order and the Report;

WHEREAS, without this Consent Order or anything contained in this Consent Order constituting an admission by Community Mortgage and Victor Vuthy Vang of any allegations made or implied by the provisions of the Temporary Orderor the Report, and solely for the purpose of settlement of all alleged violations without protracted administrative proceedings and judicial review, Community Mortgage and Victor Vuthy Vang hereby waive all rights to complete the hearing process relative to this proceeding and affirm that they are willing to take all necessary action as set forth in this Consent Order; and,

WHEREAS, in recognition of the Division and Community Mortgage and Victor Vuthy Vang having reached the following mutual agreement under this Consent Order to resolve the matters raised by the Temporary Order, the Commissioner has terminated the Temporary Order against Community Mortgage and Victor Vuthy Vang on this 22nd day of January, 2016.

ORDER

NOW COME the parties in the above-captioned matter, the Division, Community Mortgage, and Victor Vuthy Vang and stipulate and agree, solely for the purpose of settlement and compromise and without admission of fault or liability, as follows:

1. Community Mortgage and any and all officers, directors, employees, or managers or their successors or assigns operating on behalf of Community Mortgage, will cease engaging in the activity of a mortgage broker in Massachusetts, as those terms are defined under General Laws chapter 255E, section 1.
2. Victor Vuthy Vang will refrain from taking residential mortgage loan applications, or offering or negotiating terms of a residential mortgage loans, or otherwise engaging in the mortgage loan originator business, as that term is defined under General Laws chapter 255F, section 1.
3. Immediately upon the execution of this Consent Agreement, the Division will update Community Mortgage’s license status in Massachusetts in the Nationwide Mortgage Licensing System and Registry (NMLS) to “Terminated – Ordered to Surrender."
4. Immediately upon the execution of this Consent Agreement, the Division will update Victor Vuthy Vang’s license status in the NMLS to “Terminated – Ordered to Surrender."
5. Community Mortgage and/or Victor Vuthy Vang will refrain from submitting an application to obtain a mortgage broker and/or mortgage lender license from the Commissioner for a period of sixty (60) months from the effective date of the Temporary Order of May 13, 2015 (the “Term”). The provisions of this Paragraph shall also prohibit Victor Vuthy Vang from taking an ownership position in an entity licensed under General Laws chapter 255E and from participating, in any manner, in the responsibilities or duties of a control person of such an entity, during the Term. For the purposes of this Consent Order, “control” shall be defined as the power, directly or indirectly, to direct the management or policies of a company, whether through ownership of securities, by contract, or otherwise.
6. To the extent that Community Mortgage and Victor Vuthy Vang wish to resume business as a mortgage broker and/or mortgage lender at the expiration of the Term, Community Mortgage and Victor Vuthy Vang shall be required to submit a completed application to obtain the relevant license(s) from the Commissioner. Unless the Commissioner, in his sole discretion, agrees to accept such an application earlier, Community Mortgage and Victor Vuthy Vang agree not to submit such an application until the expiration the Term. The Commissioner shall have all of the discretion set forth within General Laws chapter 255E, section 4 and the Division's regulation 209 CMR 42.00 et seq. in determining whether to issue a license to Community Mortgage and Victor Vuthy Vang to conduct the licensed business; provided, however, that any such application shall not be denied because of the Temporary Order or because Community Mortgage and Victor Vuthy Vang entered into the Consent Agreement or agreed to the issuance of this Consent Order.
7. Victor Vuthy Vang will refrain from submitting an application to obtain a mortgage loan originator license from the Commissioner during the Term.
8. To the extent that Victor Vuthy Vang wishes to resume or engage in business as a licensed mortgage loan originator at the expiration the Term, Victor Vuthy Vang shall be required to submit a completed application to obtain the relevant license from the Commissioner. The Commissioner shall have all of the discretion set forth within General Laws chapter 255F, section 4 and the Division’s regulation 209 CMR 41.00 et seq. in determining whether to issue a license to Victor Vuthy Vang to conduct the licensed business; provided, however, that any such application shall not be denied because of the Temporary Order or because Victor Vuthy Vang entered into the Consent Agreement or agreed to the issuance of this Consent Order.
9. On or before December 31, 2016, Community Mortgage shall submit payment in full for the amount owed for the costs of the 2015 examination. The payment shall be made payable to the "Commonwealth of Massachusetts" and mailed to Division of Banks, Commonwealth of Massachusetts, P.O. Box 3952, Boston, Massachusetts 02241-3952.
10. The provisions of this Consent Order shall not limit, estop, or otherwise prevent any other state agency or department from taking any other action affecting Community Mortgage and/or any of its officers, directors, or managers.
11. This Consent Order shall become effective immediately upon the date of its issuance.
12. Community Mortgage agrees that, in the event that the Corporation and/or Victor Vuthy Vang fail submit payment for the costs of the 2015 examination as set forth in paragraph 9 of this Consent Order, the Division shall be authorized to submit a claim for such amounts against the mortgage broker Massachusetts surety bonds maintained by Community Mortgage pursuant to the Division's regulation 209 CMR 42.06(2)(a).
13. The provisions of this Consent Order shall be binding upon Community Mortgage and its directors, officers, managers, and their successors and assigns.
14. The provisions of this Consent Order shall be binding upon Victor Vuthy Vang, individually.
15. In accordance with the terms of the Consent Agreement entered by Community Mortgage and Victor Vuthy Vang and the Commissioner, Community Mortgage and Victor Vuthy Vang have waived all rights of appeal that they may have relative to the Temporary Order.
16. The provisions of this Consent Order shall remain effective and enforceable except to the extent that, and until such time as, any provisions of this Consent Order shall have been modified, terminated, suspended, or set aside by the Commissioner or upon an order of a court of competent jurisdiction.
17. This Consent Order and the Consent Agreement are the complete documents representing the resolution of this matter. There are no other agreements, promises, representations, or warranties other than those set forth in this Consent Order and the Consent Agreement, which replace and supersede all prior agreements between Community Mortgage, Victor Vuthy Vang and the Commissioner.
18. This Consent Order shall become effective immediately upon the date of its issuance.

 

BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS:

 

Dated at Boston, Massachusetts, this 22^nd day of January 2016.

By:

David J. Cotney
Commissioner of Banks
Commonwealth of Massachusetts