By the Division of Banks

COMMONWEALTH OF MASSACHUSETTS

Suffolk, SS.

COMMISSIONER OF BANKS
MORTGAGE LENDER AND
MORTGAGE BROKER LICENSING
Docket No. 2004-010

CONSENT ORDER


In the Matter of
INFINITY MORTGAGE COMPANY, INC.
Quincy, Massachusetts

Mortgage Lender and Mortgage Broker License No(s). MC0878,; MC3272


WHEREAS, Infinity Mortgage Company, Inc., Quincy, Massachusetts ("Infinity Mortgage" or the "Corporation"), a licensed mortgage lender and 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 20, 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 lender and/or a mortgage broker, Infinity Mortgage agrees to the issuance of this CONSENT ORDER ("ORDER") by the Commissioner of Banks ("Commissioner");

WHEREAS, an examination/inspection of Infinity Mortgage was conducted pursuant to Massachusetts General Laws chapter 255E, section 8, as of January 5, 2004, to assess the Corporation'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 lender and a mortgage broker, respectively, in the Commonwealth; and

WHEREAS, the Report of Examination/Inspection (the "Report") issued pursuant to the Division's examination/inspection of Infinity Mortgage as of January 5, 2004, alleged (a) continued violations of certain matters previously identified and intended to be corrected pursuant to the Division's Report of Examination/Inspection of the Corporation as of September 5, 2000, and (b) further non-compliance with other applicable state and federal statutes, rules, and regulations governing the conduct of those engaged in the business of a mortgage lender and mortgage broker in Massachusetts.

WHEREAS, the Report further alleged that, during the relevant time period, Infinity Mortgage had engaged in the activities of a mortgage lender and mortgage broker from an unlicensed location in Massachusetts in violation of applicable state statutes and regulations pertaining to the licensing of those engaged in the business of a mortgage lender and mortgage broker in Massachusetts.

ORDER

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

  1. Infinity Mortgage shall revise its procedures to ensure that, when performing in the capacity of a mortgage broker, all applicable consumers are provided with an Attorney General's Mortgage Broker Disclosure Form, completed in accordance with, and in the form specified, by the provisions of the Office of the Attorney General's regulation 940 CMR 8.05(1). The revisions to be implemented to address this Section of the ORDER shall include, but are not limited to, ensuring that the Attorney General's Mortgage Broker Disclosure Form is completed with as much information as is available at the time the disclosure is provided to the consumer.

  2. Infinity Mortgage shall immediately cease engaging directly or indirectly in the business of a mortgage lender and/or mortgage broker in any residential mortgage loan transaction, as those terms are defined under Massachusetts General Laws chapter 255E, section 1, from any location whether within or without the Commonwealth, without first obtaining a license from the Commissioner for such location in accordance with Massachusetts General Laws chapter 255E, section 2.

    1. Infinity Mortgage shall pay the amount of $25,000 in satisfaction of the penalty, set forth in the Report, collected in consideration of Infinity Mortgage having engaged in the business of a mortgage lender and mortgage broker at 101 Middlesex Turnpike, Burlington, Massachusetts, without a mortgage lender or a mortgage broker license from the Commissioner to conduct business at such location during the relevant period; and

    2. Infinity Mortgage shall remit payment in full, payable to the "Commonwealth of Massachusetts," with the executed copy of the CONSENT AGREEMENT, to the Office of the Commissioner of Banks, One South Station, 3 rd Floor, Boston, Massachusetts 02110. The Division shall remit the payment for deposit into the General Fund of the Commonwealth.

  3. Infinity Mortgage shall revise its procedures to ensure, when performing in the capacity of a mortgage broker, that prior to the settlement of the mortgage loan, each prospective borrower shall receive a completed copy of the contract or agreement for Infinity Mortgage's compensation. Such compensation contract or agreement shall accurately disclose any points or fees paid by the prospective borrower to the Corporation pursuant to the mortgage loan transaction. The original contract or agreement shall be maintained in Infinity Mortgage's books and records in accordance with the Division's regulation 209 CMR 42.09(1)(b).

  4. Infinity Mortgage shall revise its procedures to ensure that, when performing in the capacity of a mortgage broker, the Corporation refrains from providing any consumer with any disclosure which, pursuant to the applicable statute, regulation, or regulatory bulletin, is intended to be issued exclusively by the lender or creditor in the residential mortgage loan transaction.

  5. Infinity Mortgage shall revise its procedures to ensure that all Good Faith Estimates provided to consumers are completed in accordance with, and within the time period specified, by the provisions of the Real Estate Settlement Procedures Act, 24 CFR Part 3500.7.

  6. Infinity Mortgage shall comply with all laws and regulations applicable to its conducting the business of a mortgage lender and 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 from the effective date of this ORDER, all violations and areas of concern as specified in the Report issued pursuant to the Division's examination/inspection of Infinity Mortgage as of January 5, 2004.

    1. Within 20 days of the effective date of this ORDER, Infinity Mortgage shall submit to the Commissioner a written response that addresses each of the violations and areas of concern specified in the Report. The written response shall describe the revised policies and procedures adopted by Infinity 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, Infinity Mortgage shall establish, implement, and maintain quality control standards which provide for a loan review process to assess the Corporation'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 lender and mortgage broker in Massachusetts and (b) the revised policies and procedures implemented pursuant to the provisions of this ORDER. Such procedures and policies shall be designed to prevent the recurrence of the violations and areas of concern addressed in the Report; and

    3. Infinity 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 policies and procedures implemented pursuant to this ORDER.

  7. On the thirtieth (30 th) day after the end of each calendar quarter following the date of this ORDER, beginning with the calendar quarter ending September 30, 2004, Infinity Mortgage shall furnish written progress reports to the Division, which shall address and include the following:

    1. A description of the form, content, and manner of any actions taken to address each Section of this ORDER and the results thereof;

    2. Written findings, reviewed and signed by an authorized senior officer of the Corporation, detailing a review of management's and staff's adherence to the policies, programs, and procedures adopted pursuant to this ORDER and to applicable statutes, regulations, and rules, as well as a description of any operational changes implemented during such quarter which are intended to improve Infinity Mortgage's compliance condition in Massachusetts; and

    3. The reporting requirement to the Division contained in this Section of the ORDER shall remain in effect and shall not be amended or rescinded without the prior written modification, termination, or suspension of the applicable provision of this ORDER from the Commissioner.

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

  9. 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.

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

  11. The provisions of this ORDER shall be binding upon Infinity Mortgage, its officers, directors, and their successors or assigns.

  12. 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.

  13. This ORDER and the CONSENT AGREEMENT are the complete documents representing the resolution of the matters presented by the Report. There are no other agreements between the Division and Infinity Mortgage.

BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS:

Dated at Boston, Massachusetts, this 20th day of April, 2005.

By: Steven L. Antonakes
Commissioner of Banks