By the Division of Banks

COMMONWEALTH OF MASSACHUSETTS

Suffolk, SS.

COMMISSIONER OF BANKS
MORTGAGE BROKER LICENSING
Docket No. 2005-001

CONSENT ORDER


In the Matter of
ABACUS LENDING SERVICES, LLC, d/b/a ABACUS MORTGAGE
South Windsor, Connecticut

Mortgage Broker License No. MB2283


WHEREAS, ABACUS LENDING SERVICES, LLC, d/b/a ABACUS MORTGAGE, South Windsor, Connecticut ("Abacus Mortgage" or the "Company"), a licensed mortgage broker under Massachusetts General Laws chapter 255E, section 2, has been advised of its right to Notice and Hearing pursuant to General Laws chapter 255E, section 7(a), 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 April 19, 2005, whereby, solely for the purpose of settling this matter, and without admitting any allegations or implications of fact or the existence of any violation of state or federal laws and regulations governing the conduct and operation of a mortgage broker, Abacus Mortgage agrees to the issuance of this CONSENT ORDER ("ORDER") by the Commissioner of Banks ("Commissioner");

WHEREAS, an examination/inspection of Abacus Mortgage was conducted pursuant to General Laws chapter 255E, section 8, as of September 28, 2004, to assess the Company's level of compliance with applicable Massachusetts statutes and the Division's regulations governing the conduct of those engaged in the business of a mortgage broker in the Commonwealth; and

WHEREAS, the Report of Examination/Inspection (the "Report") issued pursuant to the Division's examination/inspection of Abacus Mortgage as of September 28, 2004 alleged substantial non-compliance with applicable state statutes, rules, and regulations governing the conduct of those engaged in the business of a mortgage broker in Massachusetts.

ORDER

NOW COME the parties in the above-captioned matter, the Division and Abacus Mortgage, and stipulate and agree as follows:

  1. Abacus Mortgage shall maintain, at all relevant times, a valid license to engage in any activity conducted by the Company in Massachusetts that requires a license from the Commissioner.

  2. Abacus Mortgage shall review the notice standards set forth by the Division's regulation 209 CMR 42.12 and Massachusetts General Laws chapter 255E, and shall thereafter establish, implement, and maintain revised procedures which ensure that the Company complies with all applicable laws and regulations governing the filing of a notice with the Commissioner upon the occurrence of any of the events specified therein.

  3. Abacus Mortgage shall deposit all application fees, processing fees, and all other prepaid mortgage loan fees, which it may accept, in an escrow trust account to be maintained at a federally insured bank. The Company may withdraw funds from the escrow account as individual loans are closed, loan applications are withdrawn, or as otherwise provided in the Division's regulation 209 CMR 42.11.

  4. Abacus Mortgage shall immediately revise its advertising policies and procedures to ensure that in all advertisements, as that term is defined under the Division's regulation 209 CMR 32.02, in which Abacus Mortgage advertises any interest rate or loan term described in 209 CMR 32.24(3)(a), the Company shall conspicuously disclose the following: "We arrange but do not make loans" in accordance with the Division's regulation 209 CMR 42.12A(4).

  5. The Company shall comply with all laws and regulations applicable to its conducting the business of a mortgage broker, including, but not limited to, Massachusetts General Laws chapter 255E, and the Division's regulation 209 CMR 42.00 et seq. Such obligations shall necessarily include the duty to address and correct, within twenty (20) days of receipt of the Report, all violations and areas of concern as specified in such Report issued pursuant to the Division's examination/inspection of Abacus Mortgage as of September 28, 2004.

    1. Within 20 days of the Company's receipt of the Report, Abacus Mortgage shall submit to the Commissioner a written response that addresses each of the violations specified in the Report. The written response shall describe the revised policies and procedures adopted by Abacus Mortgage to implement all corrective actions set forth in (i) the "Examiner's Comments and Conclusions" section of the Report and (ii) the provisions of this ORDER;

    2. Within thirty (30) days from the effective date of this ORDER, Abacus Mortgage shall establish, implement, and maintain quality control standards which provide for a loan review process to assess the Company's compliance with (a) the statutes, rules, regulations, regulatory bulletins, and other relevant provisions of law applicable to those engaged in the business of a mortgage broker in Massachusetts and (b) the provisions of this ORDER. Such quality control standards shall be designed to prevent the recurrence of the violations and areas of concern addressed in the Report; and

    3. Abacus Mortgage shall establish, implement, and maintain procedures and policies to ensure that all applicable staff receives adequate instruction and ongoing, periodic training to ensure proper implementation and execution of the revised practices and procedures implemented pursuant to this ORDER.

  6. Nothing in this ORDER shall be construed as permitting Abacus Mortgage to violate any law, rule, regulation, or regulatory bulletin to which Abacus Mortgage is subject.

  7. In consideration of the foregoing ORDER, the Division agrees not to pursue formal measures, relative to this matter, to suspend or revoke Abacus Mortgage's mortgage broker license under General Laws chapter 255E, section 6, while this ORDER is in effect.

  8. Failure to comply with the terms of this ORDER shall constitute grounds for license suspension and/or revocation pursuant to applicable provisions of the General Laws of the Commonwealth of Massachusetts.

  9. This ORDER shall become effective immediately upon the date of its issuance.

  10. The provisions of this ORDER shall be binding upon Abacus Mortgage and its managers and members, and their successors or assigns.

  11. The provisions of this ORDER shall remain effective and enforceable except to the extent that, and until such time as, any provisions of this ORDER shall have been modified, terminated, suspended, or set aside by the Commissioner or upon an order of a court of competent jurisdiction.

  12. This ORDER and the CONSENT AGREEMENT are the complete documents representing the resolution of this matter. There are no other agreements between the Division and Abacus Mortgage.

BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS:

Dated at Boston, Massachusetts, this 19th day of April, 2005.

By: Steven L. Antonakes
Commissioner of Banks