By the Division of Banks

COMMONWEALTH OF MASSACHUSETTS

Suffolk, SS.

COMMISSIONER OF BANKS
MORTGAGE BROKER AND
MORTGAGE LENDER
LICENSING
Docket No. 2009-001

FINDINGS OF FACT AND TEMPORARY
ORDER TO CEASE AND DESIST


In the Matter of
BAY MORTGAGE SERVICES, INC.
Plymouth, Massachusetts

Mortgage Company License No. MC1419

The Commissioner of Banks ("Commissioner") having determined that BAY MORTGAGE SERVICES, INC., ("Bay Mortgage" or the "Corporation"), located at 2277 State Road, Plymouth, Massachusetts, has engaged in, or is engaging in, or is about to engage in, acts or practices constituting violations of Massachusetts General Laws chapter 255E, the Division's regulations found at 209 CMR 42.00 et seq., and other statutes and regulations applicable to the mortgage business, 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 lender and mortgage broker in Massachusetts pursuant to Massachusetts General Laws chapter 255E, section 2.
  2. Bay Mortgage is, and at all relevant times has been, a Massachusetts corporation doing business in the Commonwealth. Bay Mortgage's main office is located at 2277 State Road, Plymouth, Massachusetts.
  3. According to the Division's records, Peter Lucido is the President and sole shareholder of Bay Mortgage.
  4. Bay Mortgage is licensed by the Commissioner as a mortgage lender and mortgage broker under Massachusetts General Laws chapter 255E, section 2. According to records maintained on file with the Division, the Commissioner initially issued a mortgage broker license to Bay Mortgage to engage in the business of a mortgage broker in Massachusetts on or about January 2, 1992. On or about January 2, 1992, the Commissioner issued a mortgage lender license to Bay Mortgage to engage in the business of a mortgage lender in Massachusetts. On July 27, 2000, the Commissioner issued a consolidated mortgage lender and mortgage broker license to the Corporation, with license number MC1419. License number MC1419 authorized Bay Mortgage to conduct the mortgage company business from the Corporation's main office located at 2277 State Road, Plymouth Massachusetts.
  5. At the time of the examination/inspection, Bay Mortgage maintained an additional licensed office location at 730 Hancock Street, Quincy, Massachusetts from which the Corporation conducted its mortgage lender and mortgage broker business. According to records maintained on file with the Division, the Commissioner issued a mortgage company license, license number MC3073, to Bay Mortgage for that location on or about June 10, 2003. (On or around August 28, 2008, the Division received notification from Bay Mortgage of the Corporation's intention to surrender license number MC3073, associated with the Quincy branch location.)
  6. Mortgage lenders and mortgage brokers in Massachusetts are licensed and regulated under Massachusetts General Laws chapter 255E, which is administered and enforced by the Commissioner. Pursuant to Massachusetts General Laws chapter 255E, section 8, the Division is authorized to inspect the books, accounts, papers, records, and files of mortgage lenders and mortgage brokers transacting business in Massachusetts to determine compliance with the provisions of Massachusetts General Laws chapter 255E or any rule, or regulation issued thereunder, and with any law, rule, or regulation applicable to the conduct of the business of a mortgage lender and mortgage broker.
  7. On August 12, 2008, pursuant to the authority granted under Massachusetts General Laws chapter 255E, section 8, the Division commenced an examination/inspection of the books, accounts, papers, records, and files maintained by Bay Mortgage (the "2008 examination/inspection"). The 2008 examination/inspection was conducted on-site at the Corporation's main office in Plymouth, Massachusetts.
  8. The Division's Report of Examination/Inspection on Consumer Compliance (the "Report"), which was issued to Bay Mortgage on the effective date of this Temporary Order, presented the findings of the 2008 examination/inspection and alleged significant failures to comply with applicable state and federal laws, rules, regulations, and regulatory bulletins governing the conduct of those engaged in the business of a mortgage broker and mortgage lender in Massachusetts.

    A. Failure to Meet Net Worth Requirements

  9. Pursuant to the Division's regulation 209 CMR 42.03(2)(a), as applicable to Bay Mortgage (Pursuant to the Division's regulation 209 CMR 42.17, mortgage lenders and brokers are required to demonstrate compliance with amendments to 209 CMR 42.03 by December 31, 2008. The cited language included in this Paragraph of the Temporary Order is reproduced from the Division's regulation as it existed prior to the regulatory amendments, thus representing the requirements applicable to Bay Mortgage at the time of the 2008 examination/inspection.):

    (2)(a)... An Applicant shall demonstrate and maintain:
    1. a net worth of not less than $100,000; or
    2. a combination of a net worth of not less than $ 25,000 and a bond of up to $ 75,000 in such form and with such sureties as may be approved by the Commissioner, provided such net worth and bond in the aggregate equal or exceed $ 100,000.

  10. Books and records reviewed by the Division's examiners during the 2008 examination/inspection revealed that, after adjusting Bay Mortgage's capital position in accordance with the definition of "net worth" under 209 CMR 42.02, Bay Mortgage reported a negative net worth position of ($144,000).
  11. At the time of the 2008 Examination/Inspection, Bay Mortgage maintained a surety bond in the amount of $75,000 to supplement the net worth position.
  12. However, even after accounting for the surety bond, Bay Mortgage continued to reflect a net worth deficiency of ($69,000).

    B. Unfair or Deceptive Acts and Practices

    a. False and/or Misleading Representations of Prospective Borrowers' Income

  13. The Division's regulation 209 CMR 42.12A(8), effective as of September, 8, 2006, states:

    It is a prohibited act or practice for a mortgage broker of mortgage lender to falsify income or asset information on a mortgage loan application or mortgage loan documents.

  14. Massachusetts General Laws chapter 93A, section 2(a) states:

    Unfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce are hereby declared unlawful.

  15. The Attorney General's regulation 940 CMR 8.06(1) states, in part:

    It is an unfair or deceptive act or practice for a mortgage broker or lender to make any representation or statement of fact if the representation or statement is false or misleading or has the tendency or capacity to be misleading.

  16. Books and records reviewed during the 2008 examination/inspection revealed that Bay Mortgage when acting in the capacity of a mortgage broker, had submitted to lenders Uniform Residential Loan Applications ("1003 Form") in which the applicants' financial information including but not limited to applicants' gross income, disclosed liabilities, rental income, and/or employment information differed significantly and was not supported by the information reflected on other pertinent documentation which Bay Mortgage had in its possession.
  17. The practices referenced in the Paragraph above were observed in the following fifteen loan transactions reviewed by the Division's examiners: Loan Nos. 48318, 39156823, 161049834, 123049651, 123094270, 1010045904, 10977098, 10978088, 1008322424, 5100004657, 5100004670, 261557, 1728264, 1728333, and 106042006535000. The examiners' specific findings are fully described in the Report and are incorporated herein by reference.
  18. Bay Mortgage knew or should have known that the above referenced income and/or asset information would be relied upon in underwriting the mortgage loan by the mortgage lender or financial institution to which the mortgage loan applications were brokered by Bay Mortgage.

    b. Alteration and/or Manipulation of Mortgage Loan Documents

  19. Massachusetts General Laws chapter 93A, section 2(a) states:

    Unfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce are hereby declared unlawful.

  20. The Attorney General's regulation 940 CMR 8.06(1) states, in part:

    It is an unfair or deceptive act or practice for a mortgage broker or lender to make any representation or statement of fact if the representation or statement is false or misleading or has the tendency or capacity to be misleading.

  21. The 2008 examination/inspection revealed that Bay Mortgage manipulated and/or altered various mortgage loan related documents. Examples of this practice include, but are not limited to, cutting and pasting borrower signatures to loan related documents and adding information to loan related documents subsequent to receiving the completed documents from a third party.
  22. The practices referenced in the Paragraph above were observed in the following three loan transactions reviewed by the Division's examiners: Loan Nos. 1728264, 123040651 and 123094270. The examiners' specific findings are fully described in the Report and are incorporated herein by reference.
  23. Bay Mortgage knew or should have known that the information reflected on the above referenced documents may have been relied upon in underwriting the mortgage loan by the mortgage lender or financial institution to which the mortgage loan applications were brokered by Bay Mortgage.

    c. Signing of Blank or Incomplete Disclosures

  24. The Division's regulation 209 CMR 42.12A(6), effective as of September 8, 2006, states:

    It is a prohibited act or practice for a mortgage broker or mortgage lender to have a consumer sign a blank or incomplete mortgage loan application or mortgage loan documents.

  25. Books and records reviewed by the Division's examiners during the 2008 examination/inspection revealed instances in which applicants signed blank or incomplete initial disclosure forms, including but not limited to, Loan Origination and Compensation Agreements and an Attorney General's Mortgage Broker Disclosure.

    C. Undisclosed Fees

  26. Massachusetts General Laws chapter 183, section 63 states, in part:

    A mortgagee, or a mortgage lender or mortgage broker as defined in section one of chapter two hundred and fifty-five E, shall not charge a loan fee, finder's fee, points, so-called, or similar fees in a mortgage transaction involving residential property located in the commonwealth of four or less units and occupied in whole or in part by the mortgagor, except to the extent that such fees or points have been previously disclosed to the mortgagor in writing, which disclosure may be in the form required by section seventeen D of chapter one hundred and eighty-four, or such other form which discloses said fees or points. A mortgagor shall not be obligated to pay fees or points which have not been previously disclosed as required herein.

  27. Books and records reviewed by the Division's examiners during the 2008 examination/inspection indicate that Bay Mortgage engaged in a pattern or practice of understatements or omissions of the fees charged to consumers by the Corporation.
  28. Books and records reviewed by the Division's examiners during the 2008 examination/inspection indicate that when acting in the capacity of a mortgage broker, Bay Mortgage collected broker fees at the loan closing in amounts which the Corporation's books and records failed to document had been fully and accurately disclosed to consumers, in writing, in the amounts charged at closing, if at all, as more fully described in the Report.

    D. Providing Mortgage Lender Disclosures to Consumers when Acting in the Capacity of a Mortgage Broker

  29. Books and records reviewed by the Division's examiners during the 2008 examination/inspection indicate that Bay Mortgage, when acting in the capacity of a mortgage broker, routinely provided several mortgage lender disclosures to consumers, including but not limited to, Equal Credit Opportunity Notices, Adjustable Rate Mortgage Disclosures, Escrow Waiver Forms and Notices to Applicant's of Right to Receive Copy of Appraisal Report. Such activity was in excess of the Corporation's authority as a mortgage broker.
  30. Massachusetts General Laws chapter 183, section 28C(a) states in part:

    A lender shall not knowingly make a home loan if the home loan pays off all or part of an existing home loan that was consummated within the prior 60 months or other debt of the borrower, unless the refinancing is in the borrower's interest. The "borrower's interest" shall be narrowly construed, and the burden is upon the lender to determine that the refinancing is in the borrower's interest.

  31. The Division's regulation 209 CMR 53.07(1)(b) states in part:

    A lender may request that a borrower acknowledge receipt of such a worksheet or other documentation; provided, however, a lender shall not shift the burden to the borrower to demonstrate that a home loan is in the borrowers' interest.

  32. Books and records reviewed by the Division's examiners during the 2008 examination/inspection revealed that when acting in the capacity of a mortgage broker, Bay Mortgage provided consumers a "Determination of the Loan Exemption Status" ("Statement"), a document that only mortgage lenders are authorized to provide to borrowers pursuant to Massachusetts General Laws chapter 183, section 28C(a).
  33. Books and records reviewed by the Division's examiners during the 2008 examination/inspection also revealed that the language used in the Statement provided to the applicable consumers was not in compliance with 209 CMR 53.07(1)(b) inasmuch as it shifted the burden to the borrowers to demonstrate that the loan was in the their interest and to their benefit.

    E. Misrepresentations to the Division

  34. Pursuant to the Division's licensing requirements, mortgage brokers and lenders must submit the Uniform Mortgage Branch Office Form ("MU3 Form") prior to opening a branch office. The MU3 Form requires that licensees identify the person who will be designated as the branch manager for that office. Licensees must also update information about a branch office, as necessary, by submitting amendments to the MU3 Form.
  35. Each person designated as a branch manager in the MU3 Form must submit the Uniform Mortgage Biographical Statement and Consent Form ("MU2 Form"). The MU2 Form must also be submitted in the event of a change of branch manager. Such branch managers are subject to the Division's review and approval to ensure that the individuals possess the necessary business experience and financial responsibility to engage in the business of a mortgage broker or mortgage lender.
  36. Based upon information submitted by Bay Mortgage and contained in the Division's records, Peter Lucido is identified as the branch manager of both the Plymouth and Quincy branches. However, during the 2008 examination/inspection, the Division's examiners determined that another individual was identified in the Corporation's books and records as the branch manager of the Plymouth location . Upon further inquiry, representatives of the Corporation stated that an individual other than Peter Lucido, who was identified as "office manager" on the phone list, supervised all operations in the Plymouth office.
  37. As of the effective date of this Temporary Order, the Division has not received updated MU2 and MU3 forms indicating the name of the individual who is in fact acting as the branch manager at the Plymouth location.
  38. By failing to notify the Division of the identity of the actual branch manager of the Plymouth office location and failing to submit the MU2 and MU3 Forms as required, Bay Mortgage prevented the Division from reviewing the qualifications and/or approving of the individual acting as the de facto manager.

    F. Interest Rate Lock Commitments

  39. The Division's regulation 209 CMR 42.12A(3)(b) states, in part:

    (b) ...A mortgage broker may only take a rate lock commitment fee for transmittal to the mortgage lender which intends to make the loan. Nothing herein shall prohibit a mortgage broker from negotiating the terms or conditions of a mortgage loan, including the interest rate, on behalf of a consumer. A mortgage broker may also use such forms or other evidence as desired to allow a consumer to indicate a preference to enter into a mortgage rate lock commitment with a mortgage lender. However, any such forms or evidence must clearly and conspicuously contain the following statement: "This is a request, not a commitment, to lock your interest rate with a mortgage lender".

  40. The 2008 examination/inspection revealed that when acting in the capacity of a mortgage broker, Bay Mortgage provided consumers with a "Borrower-Broker Agreement" ("Agreement") which includes language that details the loan programs requested by the prospective borrowers with an option to either float or lock in a particular interest rate. The Agreement referenced in the preceding Paragraph did not contain the required language, "This is a request, not a commitment, to lock your interest rate with a mortgage lender."

    G. Engaging in Prohibited Advertising Practices

  41. The Division's regulation 209 CMR 42.15 states, in part:

    A Licensee shall also disclose the type and number of its license(s) in all advertisements.

  42. Attorney General's regulation 940 CMR 8.04(2) states, in part:

    It is an unfair or deceptive act or practice for a mortgage broker or lender to advertise without clearly and conspicuously disclosing its business name, the words "broker" or "lender", as applicable, and the license number.

  43. Bay Mortgage failed to disclose the Corporation's license type and number on the Corporation's mortgage flyers and/or pamphlets.

    H. Failure to Provide Notification of Regulatory Action

  44. The Division's regulation at 209 CMR 42.12(1)(c) states, in part:

    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 . . . cease and desist, suspension or revocation procedures, or other formal or informal regulatory action, in any state against the Licensee, and the reasons thereof.

  45. On December 31, 2008, the State of New Hampshire Banking Department ("New Hampshire Department") issued an Order to Show Cause, Case No. 08-388, against Bay Mortgage ("New Hampshire Order"). The New Hampshire Order contains a Staff Petition in which the staff of the New Hampshire Department allege the following violations of New Hampshire law: failure to pay an examination fee and failure of the officer and owner of Bay Mortgage to respond to the New Hampshire Department inquires.
  46. As of the effective date of this Temporary Order, the Division has not received notification from Bay Mortgage of the occurrence of the events referenced above in Paragraph 45 of this Temporary Order.

    CONCLUSIONS OF LAW

  47. Based upon the information contained in Paragraphs 1 through 46, Bay Mortgage has failed to demonstrate and maintain the 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 42.03(2) and 42.06(2).
  48. Based upon the information contained in Paragraphs 1 through 46, by failing to maintain a net worth of not less than $100,000 or a combination of a net worth of not less than $25,000 and a bond of up to $75,000 that in the aggregate equal or exceed $100,000, Bay Mortgage violated the Division's regulation 209 CMR 42.03(2).
  49. Based upon the information contained in Paragraphs 1 through 46, by falsifying borrowers' income information on Uniform Residential Loan Applications submitted in connection with residential mortgage transactions, Bay Mortgage has violated the Division's regulation 209 CMR 42.12A(8) and Massachusetts General Laws chapter 93A, section 2(a) and the Office of the Attorney General's implementing regulation 940 CMR 8.06(1).
  50. Based upon the information contained in Paragraphs 1 through 46, by altering loan documentation related to the loan approval process, Bay Mortgage has violated Massachusetts General Laws chapter 93A, section 2(a) and the Office of the Attorney General's implementing regulation 940 CMR 8.06(1).
  51. Based upon the information contained in Paragraphs 1 through 46, by having borrowers' sign blank or incomplete mortgage loan documents, Bay Mortgage has violated the Division's regulation 209 CMR 42.12A(6).
  52. Based upon the information contained in Paragraphs 1 through 46, by charging loan fees, points, or similar fees in a mortgage transaction involving residential property located in the Commonwealth, of four or less units and occupied in whole or in part by the mortgagor, in amounts exceeding those previously disclosed for such fees or points to the mortgagor in writing, Bay Mortgage has violated Massachusetts General Laws chapter 183, section 63.
  53. Based upon the information contained in Paragraphs 1 through 46, by providing disclosures to consumers that only lenders are authorized to provide when acting in the capacity of a mortgage broker, Bay Mortgage exceeded its authority as a mortgage broker in violation of Massachusetts General Laws chapter 255E, section 2.
  54. Based upon the information contained in Paragraphs 1 through 46, by providing borrowers with documentation that shifted the burden to the borrowers to demonstrate that the loans were in the borrowers' interest and to their benefit, Bay Mortgage violated Massachusetts General Laws chapter 183, section 28C(a) and the Division's regulation 209 CMR 53.07(1).
  55. Based upon the information contained in Paragraphs 1 through 46, when acting in the capacity of a mortgage broker by providing the "Borrower-Broker Agreement" form, which presents the inference that the Corporation can lock an interest rate on behalf of the consumer and by failing to include required disclosure language in the aforementioned Agreement, Bay Mortgage has violated the Division's regulation 209 CMR 42.12A(3).
  56. Based upon the information contained in Paragraphs 1 through 46, by failing to disclose and/or inaccurately disclosing the Corporation's license type and number on the Corporations mortgage flyers and/or pamphlets, Bay Mortgage has violated the Division's regulation 209 CMR 42.15 and the Attorney General's regulation at 940 CMR 8.04(2).
  57. Based upon the information contained in Paragraphs 1 through 46, Bay Mortgage failed to notify the Commissioner in writing, within one business day, that on December 31, 2008 the New Hampshire Banking Department issued an Order to Show Cause in violation of the Division's Regulation 209 CMR 42.12(1)(c)
  58. Based upon the information contained in Paragraphs 1 through 46, the Commissioner has determined that:
    1. Bay Mortgage has engaged in, is engaging 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 lender and 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 Bay Mortgage.
  59. Based upon the information contained in Paragraphs 1 through 46, had the facts and conditions found therein existed at the time of Bay Mortgage's original mortgage broker and mortgage lender license applications, the Commissioner would have been warranted in refusing to issue such license pursuant to Massachusetts General Laws chapter 255E, section 4 and the Division's regulation at 209 CMR 42.04 and 209 CMR 42.07. Further, the facts and conditions set forth in Paragraphs 1 through 46, present sufficient grounds for the revocation of Bay Mortgage's broker license pursuant to Massachusetts General Laws chapter 255E, section 6 and the Division's regulation 209 CMR 42.12A(19).

    ORDER TO CEASE AND DESIST

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

  60. ORDERED that Bay Mortgage and any and all officers, directors, employees, independent contractors, or agents operating on behalf of Bay Mortgage, and their successors or assigns, shall immediately cease engaging in the activities of (a) a mortgage broker and mortgage lender, as those activities are defined under Massachusetts General Laws chapter 255E, section 1, (b) a mortgage loan originator, as those activities are defined under Massachusetts General Laws chapter 255F, section 1, relative to any residential property in Massachusetts, not otherwise expressly permitted by the terms of this Temporary Order. Therefore, Bay Mortgage 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.
  61. IT IS FURTHER ORDERED that Bay Mortgage, 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.
  62. IT IS FURTHER ORDERED that Bay Mortgage shall immediately place with one or more qualified broker(s) or lender(s), as appropriate based on the status of the application and with no loss to applicants, all of its pending Massachusetts residential mortgage loan applications. It being understood that "no loss to the applicant" shall mean that any loan which may have been closed by Bay Mortgage and remains unfunded, as well as any pending application which has been approved by the Corporation but has not yet closed, shall be placed to a lender willing to fund, or close, the mortgage loan under the same terms and conditions extended by Bay Mortgage. In the event that no such placement can be made, Bay Mortgage shall either independently fund the mortgage loan under such terms and conditions or buy down the mortgage loan offered by the lender so that the applicant does not incur a loss as a result of such placement. Bay Mortgage shall obtain the prior approval of the Commissioner before placing such applications to the qualified lender(s) or broker(s) as appropriate.
  63. IT IS FURTHER ORDERED that as soon as possible, but in no event later than two days after the effective date of this Temporary Order, Bay Mortgage shall 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 Bay 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 an executive officer of Bay Mortgage 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 all pending residential mortgage loan applications, from both the Corporation's lending and its brokering operations, 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; rate lock status; 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 Bay Mortgage's submitted loans.
  64. IT IS FURTHER ORDERED that Bay Mortgage 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 or mortgage broker pursuant to Paragraph 62 of this Temporary Order, a copy of such document, correspondence, or paper relating to the mortgage loan shall be retained in Bay Mortgage's books and records and shall be available to the Commissioner, in their entirety, immediately upon request on the date and time specified by the Commissioner.
  65. IT IS FURTHER ORDERED that within sixty (60) days of the effective date of this Temporary Order, the Corporation shall cause to be made a review of all Massachusetts residential mortgage loans originated by Bay Mortgage since August 12, 2004 and shall identify all mortgage loan transactions in which the amount actually paid by the consumer as a loan fee, mortgage broker fee, application fee, or similar fee, as recorded on the settlement agreement, exceeded the amount disclosed to the consumer, in writing, for such fees prior to closing;
    1. In each mortgage loan transaction identified pursuant to Paragraph 65 , Bay Mortgage shall reimburse the consumer the difference between the actual charge assessed to the individual consumer as a loan fee, mortgage broker fee, processing fee, or similar fee and the amount disclosed in writing for such fees prior to closing;
    2. Within sixty (60) days of the effective date of this Temporary Order, Bay Mortgage shall submit to the Commissioner a list of all borrowers identified pursuant to the above described review of residential mortgage loan transactions to whom a reimbursement is owed by the Corporation in accordance with this Paragraph of the Temporary Order; and
    3. Within ninety (90) days of the effective date of this Temporary Order, Bay Mortgage shall submit evidence of all reimbursements issued to consumers pursuant to this Paragraph of the Temporary Order, including the consumers' names, the dates the loans closed, check numbers, and the amount of the reimbursements.
  66. 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.
  67. IT IS FURTHER ORDERED that this Temporary Order shall not be construed as approving any act, practice, or conduct not specifically set forth herein which was, is, or may be in violation of relevant state or federal laws and regulations. The findings, conclusions, and required action set forth in this Temporary Order are in addition to, and not in lieu of, any findings, conclusions, and corrective action which may be set forth in the Report of Examination/Inspection, prepared by the Division of Banks as of August 12, 2008.
  68. 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 Bay Mortgage 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 14th day of January, 2009

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