By the Division of Banks

COMMONWEALTH OF MASSACHUSETTS

Suffolk, SS.

COMMISSIONER OF BANKS
MORTGAGE BROKER LICENSING
Docket No. 2006-15-CO

CONSENT ORDER


In the Matter of
SYNERGY MORTGAGE GROUP, LLC
EDWARD J. HAMMONDS
Lawrence, Massachusetts

Mortgage Broker License No. MB4244


WHEREAS, Synergy Mortgage Group, LLC, Lawrence, Massachusetts ("Synergy Mortgage" or the "Company"), a licensed mortgage broker under Massachusetts General Laws chapter 255E, section 2, and Edward J. Hammonds have been advised of their 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 February 13, 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, Synergy Mortgage and Edward J. Hammonds, individually, 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. 2006-15 (the "TEMPORARY ORDER"), against Synergy Mortgage and Edward J. Hammonds on August 11, 2006, based upon the alleged failure of Synergy Mortgage and its officer, director, and owner to demonstrate and maintain the character, reputation, integrity, and general fitness that would warrant the belief that the mortgage broker business would 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, Synergy Mortgage, and Edward J. Hammonds, and stipulate and agree as follows:

  1. Immediately upon execution of this ORDER, Synergy Mortgage will surrender its Massachusetts mortgage broker license number MB4244, by returning the original license certificate to the Division at One South Station, 3 rd Floor, Boston, Massachusetts 02110.
  2. Synergy Mortgage, its employees, agents, successors and assigns, and those persons in active participation with it, directly or indirectly, acting individually or through any corporate or other entity, except as specifically provided in paragraph 5 below, are 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 Synergy Mortgage wishes to resume business as either a mortgage broker or mortgage lender at the expiration of the 24-month term as set forth above, Synergy 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 Synergy Mortgage to conduct the licensed business.
  4. Edward J. Hammonds will refrain from submitting an application to obtain a license from the Commissioner to operate as a mortgage broker or mortgage lender pursuant to General Laws chapter 255E, sections 2-3, either as a sole proprietorship or as an executive officer, director, owner, partner, member, or equivalent, or branch manager, of the entity seeking the license, for a period of twenty-four (24) months, this period to commence upon the effective date of this ORDER.
  5. The provisions of this ORDER shall not be construed to bar or prevent Edward J. Hammonds from accepting employment with another entity licensed by the Division, including but not limited to, as a loan originator. However, Edward J. Hammonds agrees that in the event that he accepts employment with another entity licensed by the Division within twenty-four (24) months of the effective date of this ORDER, he 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 of such licensee. 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.
  6. Edward J. Hammonds will 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, he accepts employment with another entity licensed by the Division or if his employment with such entity ends.
  7. To the extent that Edward J. Hammonds, at the expiration of the 24-month term as set forth above, wishes to make an application to obtain a license from the Commissioner to operate as a mortgage broker or mortgage lender pursuant to General Laws chapter 255E, sections 2-3, either as a sole proprietorship or as an executive officer, director, owner, partner, member, or equivalent, or branch manager, of the entity seeking the license, or otherwise to obtain an ownership position or participate in the responsibilities or duties of a control person of a licensed mortgage broker or mortgage lender, Edward J. Hammonds shall be required to obtain prior approval from the Division pursuant to the applicable law or regulation. The Division shall not withhold its approval based on Ed Hammonds' agreement to this Consent Order or based on any of the underlying alleged conduct from which this Consent Order arises, provided that Ed Hammonds, during the 24-month period set forth above, complies with this Consent Order and the applicable laws governing the conduct of mortgage brokers or mortgage lenders or other licensed entities. Nothing in this paragraph shall be construed to in any way limit the Division's discretion, set forth within General Laws chapter 255E, section 4 and 209 CMR 42.00 et seq., should Ed Hammonds be found to have engaged, at any time after the effective date of this Order, in conduct in violation of this Consent Order or applicable law governing the conduct of mortgage brokers, mortgage lenders or other licensed entities.
  8. In accordance with the terms of the CONSENT AGREEMENT, Synergy Mortgage and Edward J. Hammonds, individually, have waived all rights either party may have with respect to Mortgage Broker License No. MB4244 and the TEMPORARY ORDER, including any administrative and procedural rights which either party may have with respect to such mortgage broker license and the TEMPORARY ORDER.
  9. In accordance with the terms of the CONSENT AGREEMENT, Synergy Mortgage and Edward J. Hammonds, individually, have waived all rights of appeal that either party may have relative to this matter.
  10. The provisions of this ORDER shall not limit, estop, or otherwise prevent the Division, or any other state agency or department, from taking any other action affecting Synergy Mortgage or any of its officers and directors, or their successors or assigns if Synergy Mortgage, or Edward J. Hammonds, individually, fails to fully and promptly comply with the above provisions.
  11. This ORDER shall become effective immediately upon the date of its issuance.
  12. The provisions of this ORDER shall be binding upon Edward J. Hammonds and Synergy Mortgage, its officers and directors, employees, successors and assigns, and those persons in active participation with it, directly or indirectly, acting individually or through any corporate or other entity.
  13. 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.
  14. 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 13th day of February, 2007.

By: Steven L. Antonakes
Commissioner of Banks
Commonwealth of Massachusetts