By the Division of Banks

COMMONWEALTH OF MASSACHUSETTS

Suffolk, SS.

COMMISSIONER OF BANKS
MORTGAGE BROKER LICENSING
Docket No. 2006-026-CO

CONSENT ORDER


In the Matter of
Confidence Mortgage Corporation
Lawrence, Massachusetts

Mortgage Broker License No(s). MB2877 and MB3446


WHEREAS, Confidence Mortgage Corporation, Lawrence, Massachusetts, 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 March 7, 2007, 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, Confidence Mortgage and its officers and directors, and their successors and assigns (all of which shall be referred to as "Confidence Mortgage") agree 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. 2006-026 (the "Temporary Order"), against Confidence Mortgage on or about October 2, 2006, as a result of Confidence Mortgage's alleged failure to demonstrate and maintain the character, reputation, integrity, and general fitness that would warrant the belief that its 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); 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 Confidence Mortgage, and stipulate and agree as follows:

  1. Immediately upon execution of this Order, Confidence Mortgage shall surrender its Massachusetts mortgage broker licenses, license number(s) MB2877 and MB3446, by returning the original license certificates to the Division at One South Station, 3 rd Floor, Boston, Massachusetts 02110.
  2. Confidence Mortgage is prohibited from engaging in the mortgage broker and mortgage lender business, as those terms are defined under General Laws chapter 255E, section 1 for a period of twenty-four (24) months, this period to commence upon the effective date of this Order.
  3. To the extent that Confidence Mortgage wishes to resume business as a licensed mortgage broker at the expiration of the 24-month period referenced in Paragraph 2, Confidence Mortgage shall be required to obtain the relevant license to do so from the Commissioner. The Commissioner will be assumed to have all of the discretion set forth within General Laws chapter 255E, section 4 in determining whether to issue a license to Confidence Mortgage to conduct the licensed business provided, however, that any such application submitted more than 24 months after the effective date of this Order shall not be denied on the basis of the Temporary Order.
  4. The provisions of this Order shall not be construed to bar or prevent the officers or directors of Confidence Mortgage from accepting employment with another entity licensed by the Division or from acting in the capacity of an independent contractor to engage in the licensed business on such entity's behalf.
    1. It being understood that when performing in the capacity of an independent contractor any such individual shall be "associated with" the licensed entity as that term has been interpreted by the Division in applicable published opinions, including without limitation, Opinions 96-221, 97-061, and 97-222 and which may from time to time be revised and enforced by the Commissioner. In any instance in which the individual seeks to engage in the licensed business on the entity's behalf as an independent contractor associated with and under the direction of the licensed entity, such individual shall submit to the Division a completed Statement of Accountability and an Exemption Affidavit, signed by the individual sought to be exempted from the applicable license requirement, at least five (5) days before such individual begins engaging in the licensed business. The Statement of Accountability and Exemption Affidavit shall be completed in the form that such documents appear on the Division's website at www.mass.gov/dob, without alterations or deletions.
    2. It is agreed that should such employment be accepted, or contracting agreement be entered, with another entity licensed by the Division within twenty-four (24) months of the effective date of this Order, any such officer or director shall be prohibited from taking an ownership position in such licensee and from participating, in any manner, in the responsibilities or duties of a control person or branch manager of such licensed entity. For the purposes of this 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.
  5. Any individual subject to the limitations set forth in Paragraph 4 shall notify the Division, within fifteen (15) days of the occurrence of either event, if, within twenty-four (24) months of the effective date of this Order, she/he accepts employment, or is engaged as an independent contractor, with another entity licensed by the Division or if her/his employment with such entity ends or his/her contractor status is terminated.
  6. To the extent that Confidence Mortgage wishes to obtain an ownership position or participate in the responsibilities or duties of a control person of a licensed mortgage broker or mortgage lender at the expiration of the 24-month term as set forth above, Confidence Mortgage shall be required to obtain prior approval from the Division pursuant to the applicable law or regulation.
  7. This Order shall become effective immediately upon the date of its issuance.
  8. The provisions of this Order shall be binding upon Confidence Mortgage, its officers and directors, and their successors and assigns.
  9. In accordance with the terms of the Consent Agreement entered by Confidence Mortgage and the Commissioner, Confidence Mortgage has waived all rights of appeal that it may have.
  10. 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.
  11. This 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 Order.

BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS:

Dated at Boston, Massachusetts, this 7th day of March, 2007.

Steven L. Antonakes
Commissioner of Banks
Commonwealth of Massachusetts