By the Division of Banks

COMMONWEALTH OF MASSACHUSETTS

Suffolk, SS.

COMMISSIONER OF BANKS
MORTGAGE BROKER LICENSING
No. 2006-020-CO

CONSENT ORDER


In the Matter of

ACHIEVA HOME LOANS INC.
Worcester, Massachusetts

Mortgage Broker License No. MB3677; MB4365


WHEREAS, Achieva Home Loans Inc., Worcester, Massachusetts ("Achieva Home Loans" or the "Corporation"), 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 October 25, 2006, 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, Achieva Home Loans agrees to the issuance of this CONSENT ORDER ("ORDER") by the Commissioner of Banks ("Commissioner");

WHEREAS, pursuant to General Laws chapter 255E, section (7)(b), the Commissioner issued a Findings of Fact and Temporary Order to Cease and Desist, Docket No. 2006-20 (the "TEMPORARY ORDER"), against Achieva Home Loans on September 8, 2006, as a result of Achieva Home Loans' alleged failure to demonstrate and maintain the character, reputation, integrity, and general fitness that would warrant the belief that the Corporation's mortgage broker business will be operated honestly, fairly, and soundly in the public interest in violation of Massachusetts General laws chapter 255E, section 4 and the Division's regulation 209 CMR 42.06(2)(c).

WHEREAS, in recognition of the Division and Achieva Home Loans having reached the following mutual agreement under this ORDER to resolve the matters raised by the TEMPORARY ORDER, the Commissioner has terminated the TEMPORARY ORDER on this 25 th day of October 2006; and

WHEREAS, the parties now seek to resolve by mutual agreement, the matters identified in the TEMPORARY ORDER.

ORDER

NOW COME the parties in the above-captioned matter, the Division and Achieva Home Loans, and stipulate and agree as follows:

  1. Achieva Home Loans' mortgage broker license numbers MB3677 and MB4365 shall be suspended for a period of forty-eight (48) calendar days starting September 8, 2006, the effective date of the TEMPORARY ORDER, and ending October 25, 2006. During the period that the suspension is in effect, Achieva Home Loans, and any and all employees, independent contractors, or agents operating on behalf of the Corporation shall refrain from engaging in the activities of a mortgage broker, as defined under Massachusetts General Laws chapter 255E, section 1, relative to residential property in Massachusetts unless otherwise specifically authorized, in writing, by the Division. During this suspension period, Achieva Home Loans will refrain from soliciting or accepting, either directly or indirectly, any residential mortgage loan applications from consumers for residential property located in Massachusetts.
  2. For a period of twenty-four (24) months from the effective date of this ORDER, Achieva Home Loans acknowledges and agrees that the Division may conduct examinations/inspections of the Corporation on intervals of not less than six (6) months. Such examinations/inspections may be conducted without prior notification to Achieva Home Loans and will assess the Corporation's level of compliance with state and federal statutes and regulations applicable to mortgage brokers in the Commonwealth as well as the Corporation's compliance with the provisions of this ORDER. Notwithstanding the revised examination/inspection cycle anticipated above, the provisions of this Paragraph of the ORDER shall not prohibit the Division from conducting an inspection of Achieva Home Loans pursuant to the authority granted to the Division under General Laws chapter 255E, section 8 to investigate: (a) any complaint which is received by the Division against the Corporation or (b) any information received by the Division which has a tendency to suggest that the Corporation has engaged, or is engaged, or is about to engage in acts or practices in violation of the provisions of General Laws chapter 255E, or any rule or regulation issued thereunder, or any other law, rule, or regulation applicable to the conduct of the licensed business.
  3. Within forty-five (45) days of the effective date of this ORDER, Achieva Home Loans shall engage an independent auditing firm ("Auditing Firm") to conduct a review of all mortgage loan applications processed by Achieva Home Loans since the Division's on-site inspection, which was conducted on August 30, 2006. Achieva Home Loans shall obtain the prior written approval of the Commissioner of the Auditing Firm proposed by the Corporation before such review is initiated. The Auditing Firm's review shall begin no sooner than 120 days after the effective date of this ORDER.
    1. The Auditing Firm shall review Achieva Home Loans' books and records to review the Corporation's mortgage broker activity in Massachusetts, including but not limited to, the Corporation's practices relating to: the placement of loan applications into alternative documentation loan programs (stated income; no income, no asset verification; no income verification; no ratio loans; low and no documentation loans; etc.); application completion procedures; verification procedures; internal controls; compliance with the provisions of each Lender-Broker agreement and/or Lender Guidelines which govern Achieva Home Loans mortgage broker activity; and the Corporation's compliance with the state and federal laws and regulations governing the conduct and operation of those engaged in the business of a mortgage broker in Massachusetts;
    2. The Auditing Firm shall prepare, and submit to the Commissioner a written report detailing the auditor's findings within 180 days of the effective date of this ORDER; and
    3. On an annual basis, not to exceed three years, following the submission required pursuant to Paragraph 3(b) of this ORDER, Achieva Home Loans shall engage the Auditing Firm to conduct a review addressing the matters set forth in Paragraph 3(a) for the applicable twelve-month period and, within forty-five (45) days of completion of such audit, prepare and submit to the Commissioner a written report detailing the auditor's findings.
  4. Within sixty (60) days of the effective date of this ORDER, Achieva Home Loans shall submit to the Commissioner the Corporation's revised written compliance program designed to ensure and maintain compliance by the Corporation with the state and federal laws and regulations governing the conduct and operation of those engaged in the business of a mortgage broker in Massachusetts. The compliance program, at a minimum, shall:
    1. Provide for a loan review process to assess the compliance of Achieva Home Loans, and all applicable employees, staff, and independent contractors who operate on behalf of the Corporation, with (i) the statutes regulations, regulatory bulletins, and other relevant provisions of law applicable to those engaged in the business of a mortgage broker in Massachusetts and (ii) the provisions of this ORDER. Such procedures and policies shall be designed to prevent the recurrence of the alleged violations addressed in the TEMPORARY ORDER;
    2. Ensure that Achieva Home Loans compliance program is managed by a qualified manager who shall have responsibility for all consumer compliance and related matters, including, but not limited to, monitoring the Corporation's compliance and ensuring that corrective action is taken to address all alleged violations and areas of concern previously identified by the Division; and
    3. Provide adequate training to applicable staff persons, conducted by qualified and trained personnel, which includes, but is not limited to, proper instruction and ongoing training to ensure proper implementation and execution of the revised policies and procedures implemented pursuant to this ORDER.
  5. Achieva Home Loans 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.
  6. 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 March 31, 2007, Achieva Home Loans shall furnish written progress reports to the Commissioner, detailing the form, content, and manner of any actions taken to address each Section of this ORDER and the results thereof. The written progress reports shall further describe any initiatives implemented by the Corporation during the proceeding calendar quarter to improve the Corporation's practices in the area of consumer compliance and the results thereof. The first written progress report shall be submitted to the Division within seventy-five (75) days of the effective date of this ORDER.
  7. The reporting requirements to the Commissioner contained in Section 6 of this ORDER shall remain in effect and shall not be amended or rescinded without prior written modification, termination, or suspension of the applicable provisions 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 broker license under General Laws chapter 255E, section 6 while this ORDER is in effect. However, the provisions of this ORDER shall not limit, estop, or otherwise prevent the Division, or any federal or state agency or department, from taking any other action affecting Achieva Home Loans or any of its officers and directors, or their successors or assigns.
  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 Achieva Home Loans, its officers and 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 this matter. There are no other agreements between the Division and Achieva Home Loans.

By ORDER AND direction of the Commissioner of Banks.

Dated at Boston, Massachusetts, this 25th day of October 2006.

Steven L. Antonakes
Commissioner of Banks
Commonwealth of Massachusetts