By the Division of Banks

COMMONWEALTH OF MASSACHUSETTS

Suffolk, SS.

COMMISSIONER OF BANKS
MORTGAGE BROKER
LICENSING
Docket No. 2008-005

CONSENT ORDER


In the Matter of
GRACE COMMUNITY FINANCIAL SOLUTIONS, INC.
and VARNEL ANTOINE, individually
Mattapan, Massachusetts

Mortgage Broker License No. MB4284


WHEREAS, Grace Community Financial Solutions, Inc., Mattapan, Massachusetts, a licensed mortgage broker under Massachusetts General Laws chapter 255E, section 2 ("Grace Community Financial" or the "Corporation") and Mr. Varnel Antoine, the sole officer, director, and owner of Grace Community Financial 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 September 4, 2008, 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, Grace Community Financial and Varnel Antoine agree to the issuance of this CONSENT ORDER ("Consent Order") by the Commissioner of Banks ("Commissioner");

WHEREAS, an examination/inspection of Grace Community Financial was conducted pursuant to General Laws chapter 255E, section 8, as of October 30, 2007, 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 broker in the Commonwealth; and

WHEREAS, the Report of Examination/Inspection (the "Report") issued pursuant to the Division's examination/inspection of Grace Community Financial as of October 30, 2007 alleged deficiencies in Grace Community Financial's compliance program and weaknesses in internal control procedures.

WHEREAS, Grace Community Financial agrees to enter this Consent Order solely for the purpose of settling this proceeding and without admitting any allegations or implications of fact or the existence of any violations of applicable state and federal statutes, rules.

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

ORDER

NOW COME the parties in the above-captioned matter, the Division, Grace Community Financial, and Varnel Antoine, individually, and stipulate and agree as follows:

  1. Immediately upon the execution of this Consent Order, Grace Community Financial shall withdraw its pending mortgage broker license renewal application for license No. MB4284, which was received by the Division on April 11, 2008. Having voluntarily nonrenewed its license, Grace Community Financial, its officers, directors, employees, agents, successors and assigns, and those persons in active participation with it, directly or indirectly, will refrain from originating or accepting any additional Massachusetts residential mortgage loan applications, or otherwise engaging in the mortgage broker business as a licensed mortgage broker, as that term is defined under General Laws chapter 255E, section 1, except as specifically provided in this Consent Order.
  2. To the extent that Grace Community Financial or Varnel Antoine wish to resume business as a licensed mortgage broker and/or mortgage lender, Grace Community Financial or Varnel Antoine shall be required to submit a completed application to obtain the relevant license from the Commissioner. Unless the Commissioner, in his sole discretion, agrees to accept such an application earlier, Grace Community Financial and Varnel Antoine agree not to submit such an application until at least twenty four (24) months have elapsed following the effective date of this Consent Order. 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 Grace Community Financial or Varnel Antoine to conduct the licensed business, provided however, that any such application shall not be denied solely on the basis of this Consent Order.
  3. The provisions of this Consent Order shall not be construed to bar or prevent Varnel Antoine from applying for a mortgage loan originator license under M.G.L. chapter 255F and accepting employment with another licensed mortgage entity. The Commissioner will be assumed to have all of the discretion set forth within General Laws chapter 255F, section 4 in determining whether to issue a mortgage loan originator license to Varnel Antoine, provided however, that any such application shall not be denied on the basis of this Consent Order. However, Varnel Antoine agrees that in the event that he accepts employment with another entity licensed by the Division while this Consent Order is in effect, 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 Consent 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.
  4. Grace Community Financial represents and warrants that it has no pending residential mortgage loan applications on property located in Massachusetts.
  5. Varnel Antoine shall submit a payment of one thousand one hundred dollars ($1,100.00) for the full amount owed for the costs of the Division's October 30, 2007 examination/inspection within ninety (90) days of the effective date of this Consent Order or upon his submission of a completed application for a mortgage loan originator license, whichever is sooner. The payment shall be made payable to the "Commonwealth of Massachusetts," and mailed to the Office of the Commissioner of Banks, Attn: Non-Depository Institution Supervision Section, One South Station, 3 rd Floor, Boston, Massachusetts 02110.
  6. The provisions of this Consent Order shall not limit, estop, or otherwise prevent the Division, or any other state agency or department, from taking any other action affecting Grace Community Financial or any of its officers and directors, or their successors or assigns if Grace Community Financial, or Varnel Antoine, individually, fails to fully and promptly comply with the above provisions.
  7. This Consent Order shall become effective immediately upon the date of its issuance.
  8. The provisions of this Consent Order shall be binding upon Varnel Antoine, individually, Grace Community Financial, its officers and directors, their successors and assigns, and those persons in active participation with it, directly or indirectly, acting individually or through any corporate or other entity.
  9. In accordance with the terms of the Consent Agreement entered by Grace Community Financial and the Commissioner, Grace Community Financial has waived all rights of appeal that it may have relative to this Consent Order or any of its provisions.
  10. The provisions of this Consent Order shall remain effective and enforceable except to the extent that, and until such time as, any provisions of this Consent 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 Consent 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 Consent Order.


BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS:

Dated at Boston, Massachusetts, this 4th day of September, 2008

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