By the Division of Banks

COMMONWEALTH OF MASSACHUSETTS

Suffolk, SS.

COMMISSIONER OF BANKS
MORTGAGE BROKER LICENSING

Docket No. 2007-007


FINDINGS OF FACT AND TEMPORARY ORDER TO CEASE AND DESIST


In the Matter of
CHRISTINA M. MARION
d/b/a HOUSE KEY MORTGAGE
Haverhill, Massachusetts

Mortgage Broker License No. MB3540


The Commissioner of Banks ("Commissioner") having determined that CHRISTINA M. MARION d/b/a HOUSE KEY MORTGAGE ("Christina Marion" or "House Key Mortgage"), located at 160 Main Street, Suite 5R, Haverhill, Massachusetts (the "Haverhill Business Office") has engaged in, or is engaging in, or is about to engage in, acts or practices constituting violations of Massachusetts General Laws chapter 255E, and applicable regulations found at 209 CMR 42.00 et seq., hereby issues the following FINDINGS OF FACT AND TEMPORARY ORDER TO CEASE AND DESIST ("TEMPORARY ORDER") pursuant to General Laws chapter 255E, section 7(b).

FINDINGS OF FACT

  1. The Division of Banks ("Division"), through the Commissioner, 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.
  2. Christina Marion is, and at all relevant times, has been an individual conducting the business of a mortgage broker in the Commonwealth of Massachusetts. Christina Marion is licensed by the Commissioner as a mortgage broker as required by Massachusetts General Laws chapter 255E, section 2. According to records maintained on file with the Division, the Commissioner issued Christina Marion's license to engage in the business of a mortgage broker on August 18, 2004 with license number MB3540.
  3. On October 24, 2006, the State of New Hampshire Banking Department ("New Hampshire Department") issued an Order to Show Cause, Docket No. 06-084, against Christina Marion ("New Hampshire Order to Show Cause"). The New Hampshire Order to Show Cause alleges that Christina Marion failed to file required financial statements and failed to respond to multiple letters that had been sent by the New Hampshire Department.
  4. On January 2, 2007, the New Hampshire Department entered a Default Judgment against Christina Marion for failure to respond to the New Hampshire Order to Show Cause. Pursuant to the Default Judgment, Christina Marion's New Hampshire mortgage broker license was revoked.
  5. The Division's regulation at 209 CMR 42.12(1)(c) states, in part:

    (1) A Licensee shall notify the Commissioner immediately, and in writing within one business day, of the occurrence of any of the following significant developments: . . . (c) [R]eceiving notification of the institution of license . . . revocation procedures, or other formal or informal regulatory action, in any state against the Licensee, and the reasons thereof.

  6. As of the effective date of this TEMPORARY ORDER, the Division has not received notification from Christina Marion of the occurrence of the events referenced above in Sections 3 and 4 of this TEMPORARY ORDER.
  7. On January 29, 2007, pursuant to Massachusetts General Laws chapter 255E, section 8, the Division requested access to Christina Marion's books and records in order to assess House Key Mortgage'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.
  8. At all relevant times, information reported by Christina Marion and maintained in the Division's records indicate that all books, records, and accounts relating to the licensed mortgage broker business have been maintained by Christina Marion at the Haverhill Business Office.
  9. On January 29, 2007, the Division requested that House Key Mortgage make such records available for the Division's inspection at the Haverhill Business Office on February 1, 2007 at 9:00 AM.
  10. On February 1, 2007, representatives of the Division arrived at the Haverhill Business Office at or about 9:00 AM and were not granted access to the business office. Without access to the Haverhill Business Office, the Division representatives were unable to conduct an inspection of House Key Mortgage's books, accounts, papers, records and files relating to the Massachusetts licensed mortgage broker business.
  11. Massachusetts General Laws chapter 255E, section 8 states, in part:

    Each licensee shall, when directed by said commissioner, permit said commissioner or his duly authorized representative to inspect its relevant records and evidence of compliance with the provisions of this chapter or any rule or regulation issued hereunder and with any other law, rule or regulation applicable to the conduct of the business for which it is licensed under this chapter . . . . For the purposes of such inspection, said commissioner or his representative shall have access to the offices and place of business, books, accounts, papers, records and files of all such licensees.

    CONCLUSIONS OF LAW

  12. Based upon the information contained in Paragraphs 1 through 11, Christina Marion has failed to demonstrate the financial responsibility, character, reputation, integrity, and general fitness that would warrant the belief that the 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).
  13. Based upon the information contained in Paragraphs 1 through 11, Christina Marion failed to notify the Commissioner in writing, within one business day, that the New Hampshire Department, on October 24, 2006, initiated formal regulatory action to revoke her New Hampshire mortgage broker license through the entering an Order to Show Cause, and the reasons thereof, in violation of 209 CMR 42.12(1)(c).
  14. Based upon the information contained in Paragraphs 1 through 11, Christina Marion again failed to notify the Commissioner in writing, within one business day, that the New Hampshire Department, through a Default Judgment entered against her on January 2, 2007, had revoked her New Hampshire mortgage broker license, in violation of 209 CMR 42.12(1)(c).
  15. Based upon the information contained in Paragraphs 1 through 11, Christina Marion failed to allow the Division's representatives access to House Key Mortgage's office, books, accounts, papers, records and files to permit an inspection, in violation of Massachusetts General Laws chapter 255E, section 8 which authorizes such inspection with or without prior notice to the licensee.
  16. Based upon the information contained in Paragraphs 1 through 11, the Commissioner has determined that:
    1. Christina Marion has engaged in, or is about to engage in, acts or practices which warrant the belief that it is not operating honestly, fairly, soundly and efficiently in the public interest in violation of standards governing the licensing and conduct of a mortgage broker including, but not limited to, the provisions of the Division's regulations at 209 CMR 42.00 et seq.; and
    2. The public interest will be irreparably harmed by delay in issuing an ORDER TO CEASE AND DESIST to Christina Marion.
  17. Based upon the information contained in Paragraphs 1 through 11, had the facts and conditions found therein existed at the time of Christina Marion's original mortgage broker license application, the Commissioner would have been warranted in refusing to issue such license. Further, the facts and conditions set forth in paragraphs 1 through 9 present sufficient grounds for the revocation of Christina Marion's mortgage broker license number MB3540 pursuant to Massachusetts General Laws chapter 255E, section 6 and the Division's regulation at 209 CMR 42.07(2)(b).

    ORDER TO CEASE AND DESIST

    After taking into consideration the FINDINGS OF FACT and CONCLUSIONS OF LAW stated herein, it is hereby:

  18. ORDERED that Christina Marion and any and all employees, independent contractors, or agents operating on her behalf, and their successors or assigns, shall immediately cease engaging in the activities of a mortgage broker, as defined under Massachusetts General Laws chapter 255E, section 1, relative to any residential property in Massachusetts, not otherwise expressly permitted by the terms of this TEMPORARY ORDER. Therefore, Christina Marion is ordered to immediately cease soliciting or accepting, either directly or indirectly, any residential mortgage loan applications from consumers for residential property located in Massachusetts.
  19. IT IS FURTHER ORDERED that Christina Marion shall immediately place any fees previously collected from Massachusetts consumers relative to any pending mortgage loan applications in a separate escrow account maintained at a federally insured bank.
  20. IT IS FURTHER ORDERED that Christina Marion shall immediately place with one or more qualified broker or lender, as appropriate based on the status of the application and with no loss to applicants, all of her pending Massachusetts residential mortgage loan applications. The open application list to be placed with a qualified broker or lender shall include all transactions in which Christina Marion was performing in the capacity of a mortgage broker. Christina Marion shall obtain the prior approval of the Commissioner before placing such applications to the qualified broker(s) or lender(s).
  21. IT IS FURTHER ORDERED that Christina Marion shall immediately submit the following information in writing to the Commissioner:
    1. A year-to-date balance sheet and statement of income and expense. The balance sheet should indicate House Key Mortgage's cash position at each of its depository banks as well as the corresponding bank account numbers. The balance sheet and statement of income and expense shall be signed and dated by Christina Marion under the pains and penalties of perjury to certify that the information reported is true and accurate and prepared in accordance with generally accepted accounting principles.
    2. A detailed record of pending mortgage loan applications which shall include, but is not limited to, the following: customer name, address, telephone number; all prepaid loan fees submitted by the customer; amount of loan; application status (i.e. filed, submitted to lenders); scheduled closing date; the location of all original open application files; and a list of applicable wholesale lenders. The latter list should include telephone numbers of contact persons familiar with Christina Marion's submitted loans.
  22. IT IS FURTHER ORDERED that Christina Marion shall immediately secure all pending mortgage loan application files and, to the extent that any original documents must be forwarded to the relevant mortgage lender pursuant to Paragraph 20 of this TEMPORARY ORDER, a copy of such document, correspondence, or paper relating to the mortgage loan shall be retained in the Christina Marion's books and records and shall be available to the Commissioner, in their entirety, immediately upon request at the date and time specified by the Commissioner.
  23. IT IS FURTHER ORDERED that this TEMPORARY ORDER shall become effective immediately and shall remain in effect unless set aside, limited, or suspended by the Commissioner or upon court order after review under Massachusetts General Laws chapter 30A.
  24. IT IS FURTHER ORDERED that a hearing will be scheduled on this matter to determine whether or not such TEMPORARY ORDER shall become permanent and final only upon receipt of a written request for such a hearing from Christina Marion within twenty (20) days of the effective date of this TEMPORARY ORDER. If no hearing is requested within this twenty (20) day period, this TEMPORARY ORDER shall become permanent and final until it is modified or vacated by the Commissioner.

BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS.

Dated at Boston, Massachusetts this 1st day of February, 2007.

By: Steven L. Antonakes
Commissioner of Banks