By the Division of Banks

COMMONWEALTH OF MASSACHUSETTS

Suffolk, SS.

COMMISSIONER OF BANKS
MORTGAGE LENDER
MORTGAGE BROKER
LICENSING
Docket No. 2009-007

ORDER TO SHOW CAUSE
AND NOTICE OF RIGHT
TO A HEARING


In the Matter of
CASTLE POINT MORTGAGE, INC.
Elkridge, Maryland

Mortgage Company License No(s). MC5128 and MC5130

ADMINISTRATIVE COMPLAINT

The Commonwealth of Massachusetts Division of Banks (the "Division"), by and through the Commissioner of Banks of the Commonwealth of Massachusetts (the "Commissioner "), for its Order to Show Cause and Notice of Right to a Hearing ("Order and Notice"), alleges as follows:

  1. The Division brings this action under Massachusetts General Laws chapter 255E, section 6 to obtain temporary, preliminary, and permanent injunctive relief, ordering Castle Point Mortgage, Inc. ("Castle Point" or the "Corporation"), at all relevant times, a licensed mortgage lender and mortgage broker under Massachusetts General Laws chapter 255E, section 2 and its implementing regulation 209 CMR 42.00 et seq., to cease and desist from transacting business in the Commonwealth as a mortgage lender and/or mortgage broker; revocation of Castle Point's Massachusetts mortgage company licenses, numbers MC5128 and MC5130; and such other equitable relief as may be necessary due to Castle Point's failure to maintain and exercise the financial responsibility, character, reputation, integrity, and general fitness that would warrant the belief that its business will be operated honestly, fairly, soundly, and efficiently in the public interest in violation of Massachusetts General Laws chapter 255E, section 4 and the Division's regulation 209 CMR 42.03(2)(c) and 42.06(2)(c).

    JURISDICTION AND VENUE

  2. The Division, through the Commissioner, is an agency of the Commonwealth of Massachusetts with jurisdiction over matters relating to the licensing and operation of those engaged in the business of a mortgage lender and mortgage broker pursuant to Massachusetts General Laws chapter 255E, section 2 and Massachusetts General Laws chapter 255E, section 8.
  3. At all relevant times, Castle Point has been engaged in the business of a mortgage lender and mortgage broker of residential property ("Residential property" means real property located in the Commonwealth having thereon a dwelling house with accommodations for four or less separate households and occupied, or to be occupied, in whole or in part by the obligor on the mortgage debt pursuant to Massachusetts General Laws chapter 255E, section 1.) in Massachusetts.

    RESPONDENT

  4. At all relevant times, Castle Point was a foreign corporation doing business in the Commonwealth with its main office located at 6800 Deerpath Road, Suite 105, Elkridge, Maryland. On July 2, 2008, Castle Point filed a Foreign Certificate of Withdrawal with the Massachusetts Secretary of the Commonwealth, thus surrendering its authority to transact business in Massachusetts.
  5. Castle Point was 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, license number MB2718, to Castle Point to engage in the business of a mortgage broker on or about July 23, 2002.
  6. According to records maintained on file with the Division, as of March 2008, Castle Point held two mortgage company licenses for office locations in Elkridge, Maryland and Parsippany, New Jersey with license numbers MC5128 and MC5130, respectively. Division records indicate that the Commissioner issued the mortgage company licenses for both of those locations on or about December 11, 2007. (According to Division records, Castle Point has held various licenses, including both mortgage lender and mortgage company licenses, for office locations located within and without the Commonwealth since the date of initial licensure. Castle Point had continuously held at least one mortgage license since the date of its initial licensure until petitioning to surrender its Massachusetts licenses in July 2008.)
  7. On or about December 11, 2007, Castle Point was issued a mortgage company license, license number MC5129 to engage in the business of a mortgage lender and mortgage broker. License number MC5129 authorized Castle Point to conduct the mortgage company business from the Corporation's office located at One Tech Drive, Suite 320, Andover, Massachusetts. License number MC5129 was surrendered by the Corporation on January 24, 2008.
  8. By letter dated July 8, 2008, Castle Point notified the Division that the Corporation intended to surrender its mortgage company licenses for its offices located in Elkridge, Maryland and Parsippany, New Jersey with license numbers MC5128 and MC5130, respectively. The Corporation also attached the original license certificates. The Corporation subsequently requested the surrender of its licenses via the Nationwide Mortgage Licensing System (NMLS) as of July 24, 2008.

    REGULATORY BACKGROUND

  9. 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 and any rule, or regulation issued thereunder, and with any law, rule, or regulation applicable to the conduct of the business of a mortgage lender or mortgage broker.
  10. On March 10, 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 Castle Point to evaluate the Corporation's compliance with the laws, regulations, and regulatory bulletins applicable to the conduct of a mortgage lender and mortgage broker business in Massachusetts (the "2008 examination/inspection").
  11. The Division's Report of Examination/Inspection (the "Report"), was issued to Castle Point on the effective date of this Order and Notice 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 lender and mortgage broker in Massachusetts. The findings and conclusions of the Report are incorporated herein in their entirety by reference.

    A. Unfair or Deceptive Acts and Practices

    (i). False and/or Misleading Representations of Prospective Borrowers' Income

  12. 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.

  13. 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.

  14. 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.

  15. Books and records reviewed during the 2008 examination/inspection revealed that Castle Point falsified or misrepresented income information on mortgage loan documents relating to loans originated by the Corporation. Examples include, but are not limited to the following documents, as summarized below:
    1. Loan #0005070736.
      1. The initial stated income loan application prepared by Castle Point and completed as of July 18, 2005 for a loan which closed on September 1, 2005 indicated that the gross monthly base employment income of the applicant, a nurse, was $4,000, or $48,000 annually.
      2. Correspondence addressed to a representative of Castle Point and dated July 25, 2005 from the applicant in the loan file indicates that the applicant's "gross monthly earnings [as of the date of correspondence] are $3,200.00."
      3. The final application signed at closing reflects an increase in the applicant's reported gross monthly income to $5,000, or $60,000 annually.
      4. On May 13, 2008, a representative of the applicant's employer advised the Division's examiners via telephone that the reported annual salary of $60,000 was overstated and added that the applicant's gross annual income, from the employer listed on the loan application, for 2005 was $2,737 and only $1,116.50 in 2006.
      5. The discrepancy in income between the monthly earnings of $3,200 reported by the applicant and the annual salary of $60,000 reported on the loan application prepared by Castle Point, reveals that Castle Point overstated the applicant's gross annual income by approximately $21,600.
    2. Loan #0005051008.
      1. The initial stated income loan application prepared by Castle Point and completed as of May 10, 2005 for a loan which closed on July 22, 2005 indicated that the gross monthly base employment income of the applicant, a staff sergeant in the U.S. military, was $3,500, or $42,000 annually.
      2. Two pay stubs contained in the loan file for the months of March 2005 and April 2005 reflect gross base monthly income of $2888.70, or $34,664.40 annually. Taking into account the housing, subsistence and cost of living allowances, which were itemized as additional income on the pay stubs, total gross monthly income is approximately $4,443.88, or $53,326.56 annually.
      3. The final application signed at closing reflects an increase in the applicant's gross monthly income to $6,500, or $78,000 annually.
      4. The discrepancy in income reveals that Castle Point overstated the applicant's gross annual income by approximately $24,673.44.
      5. Upon inquiry, Castle Point's compliance manager explained that the gross monthly income included anticipated future earnings and rental income from the applicant's multi-family property. However, if accurate, the loan application prepared by Castle Point did not reflect the itemization of any rental income.
    3. Loan #3000009448.
      1. The initial full documentation loan application completed as of December 29, 2006 for a loan which closed on January 26, 2007 indicated that the gross monthly income of the applicant, the Director of Nursing at an assisted living facility, was $7,083, or $84,996 annually. This figure substantially corresponds with 2005 Form W-2s retained in the loan file.
      2. The final application signed at closing reflects an increase in the applicant's gross monthly income to $10,766.36, or $129,196.32 annually.
      3. The discrepancy in income reveals that Castle Point overstated the applicant's gross annual income by approximately $44,000.

      (ii). Failure to Implement Appropriate Policies and Procedures Regarding Loans with Increased Risk and the Use of Reduced Documentation Mortgage Products

  16. The Division's Regulatory Bulletin 5.1-103: Guidance on Non-Traditional Mortgage Products Risk, issued on January 8, 2007, states, in part:

    As the level of credit risk increases, it is expected that a provider will more diligently verify and document a borrower's income and debt reduction capacity. Clear policies should govern the use of reduced documentation. For example, stated income should be accepted only if there are mitigating factors that clearly minimize the need for direct verification of repayment capacity. For many borrowers, providers generally should be able to readily document income using recent W-2 statements, pay stubs, or tax returns.

    1. Loan #3000046450.
      1. The final application for a stated income cash-out refinance, adjustable rate loan which closed on May 23, 2007 indicated that the gross monthly income of the applicant, an assistant groomer at a pet care and supply store, was $5,500, or $66,000 annually. The application indicated that the applicant had held the position of assistant groomer for only 5 months and had no previous relevant experience.
      2. Information in the loan file indicates that the applicant's median FICO credit score reported was 496 with an anticipated debt-to-income (DTI) ratio of 53%, which would represent increased credit risk.
      3. The Division's examiners could not locate any documentation in the loan file that would indicate the presence of mitigating factors that would minimize the need for verification of income and repayment capacity.
      4. The Division's examiners could not locate any documentation in the loan file that would indicate that Castle Point had made an effort to document the borrower's income, which appeared to be overstated on its face.
      5. Books and records reviewed during the 2008 examination/inspection indicate that approximately four months after the borrower obtained the May 2007 loan noted in subparagraph (a) ii, the borrower refinanced into a 30-year fixed rate full documentation loan.
      6. In preparing the loan application under the full documentation loan program, Castle Point completed the loan application by reporting the annual income from the same employer and period referenced above in subparagraph (a)ii as $24,000, an amount which had been reported previously as $66,000.
  17. Castle Point knew or should have known that the above referenced income and/or asset information as described in Paragraphs 15 and 16 would be relied upon by investors.

    (iii). Signing Borrowers' Names on Mortgage Loan Documents without Authorization.

  18. The Division's regulation 209 CMR 42.12A(7), effective as of September 8, 2006, states:

    It is a prohibited act or practice for a mortgage broker or mortgage lender to sign a consumer's name to a mortgage loan application or mortgage loan documents on behalf of a consumer.

  19. During the 2008 examination/inspection the Division's examiners identified at least three instances in which it appears that Castle Point reproduced the borrower's signatures on the "Borrower's Signature Authorization" forms, as specifically identified in the Report and incorporated herein by reference. Upon inquiry, each of the three borrowers confirmed that they had not signed the document in question and had not authorized Castle Point to sign their names on their behalf.

    B. Undisclosed Fees

  20. 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.

  21. Books and records reviewed by the Division's examiners during the 2008 examination/inspection indicate, as more fully described in the Report, that the Corporation engaged in a pattern or practice of understatements or omissions of the origination fees charged to consumers by Castle Point.
  22. The 2008 examination/inspection revealed that origination fees were collected at the loan closing in amounts which Castle Point's books and records failed to document had been fully and accurately disclosed to consumers, in writing, to the extent charged at closing, if at all, as more fully described in the Report.

    C. Failure to Provide Disclosures within Applicable Timing Requirements

  23. Books and records reviewed during the 2008 examination/inspection revealed that Castle Point's policies specify that all applicable preliminary disclosures be mailed from the Corporation's Maryland office on the third day after a full credit report is obtained, employment information and/or repayment capacity is supplied, an estimated and verbally verified home value is provided, and a loan amount is requested.
  24. Applicable statutes and regulations setting forth the timing requirements in which certain preliminary disclosures must be provided to consumers include, but not limited to: the Division's regulation 209 CMR 42.15 which requires the disclosure of license type and number at application; the Federal Trade Commission's regulation 16 CFR 313 which requires the provision of privacy policies in writing at application; the Real Estate Settlement Procedures Act (RESPA) implementing regulations 24 CFR 3500.7(a), 3500.21(b), and 3500.15(b)(1) which require the provision of the good faith estimate, servicing disclosure statement, and affiliated business arrangement disclosure statement within three days of application; Section 609(g) of the Fair Credit Reporting Act which requires the provision of the credit score disclosure form at the time the credit report is produced; the Attorney General's regulation 940 CMR 8.05(6) which required the provision of the Attorney General's Mortgage Lender Disclosure within three days of incurring an expense on behalf of the borrower; and the Division's regulation 209 CMR 32.19(2) which requires the provision of the Consumer Handbook on Adjustable Rate Mortgages and applicable adjustable rate program disclosures within three days of application.
  25. Castle Point's policy, as set forth in Paragraph 23, does not allow for timely provision of disclosures for which timing requirements are triggered by the acceptance of an oral or written request for financing, initial submission of a written application, and/or incurrence of an expense on behalf of the applicant.

    D. Deceptive Business Practices

  26. Books and records reviewed by the Division's examiners during the 2008 examination/inspection revealed that Castle Point pre-dated certain documents presented at loan closings in an apparent attempt to avoid detection of violations of applicable federal and state consumer protection statutes and regulations governing the period in which the mortgage lender must provide such documents.
  27. As specifically identified in the Report, certain disclosure forms contained computer-generated dates or stamped dates in the sections designated for the borrower to sign and date. In certain instances specifically identified in the Report, the disclosure forms were pre-dated prior to closing but were not provided for signature until the date of settlement, as evidenced by the fact that the borrower(s) crossed out the pre-printed date and inserted the actual date of settlement.

    E. Determination of Borrower's Interest

  28. 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.

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

    A lender shall develop policies and procedures to demonstrate compliance with 209 CMR 53.00. Such policies and procedures shall include, at a minimum, a worksheet or other document to be dated at or before closing by the lender indicating how the lender determined that the home loan is in the borrower's interest...

    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 borrower's interest.

  30. Books and records reviewed by the Division's examiners during the 2008 examination/inspection revealed that, in the majority of applicable files reviewed, the documentation that Castle Point provided to borrowers improperly shifted the burden to the borrowers to determine and document that the loan was in the borrowers' interest and to their benefit, as more specifically described in the Report.

    F. Failure to Timely Provide Notification of Significant Events

  31. The Division's Regulation 209 CMR 42.13(2) states:

    Licensees shall provide thirty days prior written notice of any change or closing of a Massachusetts location to the Commissioner and shall contain such other information as the Commissioner may require.

  32. Books and records reviewed during the 2008 examination/inspection revealed that Castle Point failed to provide thirty days prior notice of the closing of the Corporation's Andover, Massachusetts office location. Specifically, Castle Point's notification of the closing of the office, received by the Division on January 24, 2008, stated that the branch had closed as of January 18, 2008.
  33. The Division's regulation 209 CMR 42.12(3)(a) states, in part:

    15 days prior to any proposed change in control in the ownership of a Licensee, or among the officers, partners or directors of a Licensee, a notice shall forthwith be filed with the Commissioner who may thereupon cause such investigation to be made as he deems necessary, as if it were a new license.

  34. Books and records reviewed during the 2008 examination/inspection revealed that Castle Point notified the Division on October 28, 2004 of a new Vice President and Treasurer, effective November 1, 2004.

    G. Misleading Representations

  35. 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.

  36. Books and records reviewed during the 2008 examination/inspection revealed numerous instances in which Castle Point provided documentation to consumers that contained false or misleading information. Examples are described in the Report and include, but are not limited to, the following:
    1. The "Lock-In/Financing Agreement" form provided by Castle Point to all consumers states that Private Mortgage Insurance ("PMI") is "not required" even in cases when PMI was required in connection with the loan obtained by the borrower. Moreover, the PMI was included in the principal and interest payment listed in the form.
    2. Adjustable rate mortgage disclosures provided by Castle Point for loans closed in May 2007 referenced examples of loan terms based on the LIBOR index rate as of January 2005. (In addition, such disclosure is not in compliance with the Official Staff Interpretation, Regulation Z (Truth in Lending) section 226.19(b)(2)(5) which states: "A creditor must revise the disclosures required under this section once a year as soon as reasonably possible after the new index value becomes available. Revisions to the disclosures also are required when the loan program changes.")

    H. Inaccurate Loan Application Data Reported on Loan/Application Register

  37. The Home Mortgage Disclosure Act ("HMDA") implementing regulation 12 CFR 203 ("Regulation C") requires that financial institutions collect certain data regarding applications for, and originations and purchases of, home purchase loans, home improvement loans, and refinancings for each calendar year. All reportable information is required to be recorded on a loan/application register ("LAR") in the format prescribed in Appendix A of Regulation C.
  38. In order to assess compliance with the data recording requirements of Regulation C, the Division's examiner reviewed 25 residential mortgage applications for the 2006 calendar year and compared the information contained therein with the data recorded by Castle Point on the 2006 LAR.
  39. The Division's examiner concluded that for 22 of the 25 applications reviewed, Castle Point inaccurately reported certain items on the 2006 LAR, including information reported in designated 'key columns,' as fully described in the Report and incorporated herein by reference. Furthermore, the examiner determined that Castle Point failed to record on the 2006 LAR two of the loan files contained in the sample reviewed.

    VIOLATIONS

    NOW, THEREFORE, the Division hereby sets forth the following Charges against Castle Point:

  40. The Division hereby re-alleges and incorporates by reference Paragraphs 1 through 39 of this Order and Notice as though fully set forth.
  41. CHARGE ONE: Castle Point 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 42.03(2)(c) and 42.06(2)(c).
  42. CHARGE TWO: B y falsifying and/or misrepresenting borrowers' income information on Uniform Residential Loan Applications, Castle Point has violated the Division's regulation 209 CMR 42.12(A)(8), Massachusetts General Laws chapter 93A, section 2(a) and the Office of the Attorney General's implementing regulation 940 CMR 8.06(1).
  43. CHARGE THREE: By signing consumers' names on mortgage loan documents, Castle Point has violated the Division's regulation 209 CMR 42.12A(7).
  44. CHARGE FOUR: By charging origination fees or similar fees in mortgage transactions involving residential property located in the Commonwealth, of four or less units and occupied in whole or in part by the mortgagor, without disclosing such fees or points in their entirety to the mortgagor, in writing, prior to the closing of the loan, Castle Point has violated Massachusetts General Laws chapter 183, section 63.
  45. CHARGE FIVE: By failing to provide certain disclosures within the relevant timing requirements, Castle Point has violated the Division's regulation 209 CMR 42.15, the Federal Trade Commission's regulation 16 CFR 313, the RESPA implementing regulation 24 CFR 3500.7(a), 3500.21(b), and 3500.15(b)(1), Section 609(g) of the Fair Credit Reporting Act, the Attorney General's regulation 940 CMR 8.05(6), and the Division's regulation 209 CMR 32.19(2).
  46. CHARGE SIX: By pre-dating certain documents presented at loan closings for the borrowers' signature in an apparent attempt to avoid detection of violations of applicable federal and state consumer protection statutes and regulations governing the period in which the mortgage lender must provide such documents, Castle Point 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).
  47. CHARGE SEVEN: By providing borrowers with documentation that shifted the burden to the borrowers to determine and document that the loans were in the borrowers' interest and to their benefit, Castle Point violated Massachusetts General Laws chapter 183, section 28C(a) and the Division's regulation 209 CMR 53.07(1).
  48. CHARGE EIGHT: Castle Point closed its Andover office location without first notifying the Commissioner, in writing, at least thirty days prior to the closing of the office location, in violation of the Division's regulation 209 CMR 42.13(2).
  49. CHARGE NINE: By providing mortgage loan applicants with documentation that contained false or misleading information, Castle Point has violated the Attorney General's regulation 940 CMR 8.06(1).
  50. CHARGE TEN: By significantly misreporting and failing to maintain procedures to identify and correct information reported on the 2006 LAR, Castle Point failed to comply with the HMDA implementing regulations 12 CFR 203 ("Regulation C").
  51. CHARGE ELEVEN: Had the foregoing existed at the time of Castle Point's original mortgage broker and lender license applications, the Commissioner would have been warranted in refusing to issue such licenses. Further, the facts and conditions set forth in Paragraphs 1 through 39 present sufficient grounds for the revocation of Castle Point's mortgage lender and mortgage broker licenses pursuant to Massachusetts General Laws chapter 255E, section 6 and the Division's regulation at 209 CMR 42.04(2)(b), 42.07(2)(b), and 42.12A(19).

    PRAYER FOR RELIEF

  52. WHEREFORE, the Division, by and through the Commissioner , prays for a final decision as follows:
    1. For a final Agency decision awarding temporary and preliminary injunctive relief, and any other ancillary relief, as may be necessary to protect the public interest during the pendency of this matter.
    2. For a final Agency decision in favor of the Division and against Castle Point for each Charge set forth in this Order and Notice.
    3. For a final Agency decision ordering Castle Point to cease and desist from transacting business in Massachusetts as a mortgage lender and/or mortgage broker.
    4. For a final Agency decision ordering Castle Point to immediately place any pending residential mortgage loan applications and related files with an independent, licensed Massachusetts mortgage lender or other qualified lender in Massachusetts, with no costs to the applicant.
    5. For a final Agency decision revoking Castle Point's mortgage company licenses, numbers MC5128 and MC5130, to conduct business as a mortgage lender and mortgage broker in Massachusetts.
    6. For costs and fees of the Division's investigation of this matter.
    7. For such additional equitable relief as the Administrative Hearings Officer may deem just and proper including, without limitation, an order directing Castle Point to issue the reimbursements to Massachusetts consumers as set forth in the findings of the Report.

    NOTICE OF RIGHT TO A HEARING

  53. You or your authorized representative are required to file an Answer or otherwise respond to the Charges contained in this Order and Notice within twenty-one (21) days of the effective date of this Order and Notice, pursuant to the Standard Adjudicatory Rules of Practice and Procedure, 801 C.M.R. §§ 1.01 (6)(e). Failure to do so may result in a default judgment against you. The Answer, and any subsequent filings that are made in conjunction with this proceeding, shall be directed to the Administrative Hearings Officer, Division of Banks, with a copy to Prosecuting Counsel.

    All papers filed with the Division shall be addressed to the attention of:

    Administrative Hearings Officer
    Division of Banks
    One South Station, 3 rd Floor
    Boston, Massachusetts 02110

    Prosecuting Counsel for this matter is:

    Aimee Desai, Esq.
    Division of Banks
    One South Station, 3 rd Floor
    Boston, Massachusetts 02110

  54. You are further advised that Castle Point has the right to be represented by counsel or other representative, to call and examine witnesses, to introduce exhibits, to cross-examine witnesses who testify against Castle Point, and to present oral argument. The hearing will be held at a date and time to be determined and will be conducted according to Massachusetts General Laws, chapter 30A, sections 10 and 11, and the Standard Adjudicatory Rules of Practice and Procedure, 801 CMR 1.01 and 1.03.
  55. You or your representative may examine any and all Division records relative to this case prior to the date of the hearing, during normal business hours, at the office of the Prosecuting Counsel. If you elect to undertake such an examination, please contact the Division at (617) 956-1543 in advance to schedule a time that is mutually convenient.

Dated at Boston, Massachusetts, this 27th day of March, 2009

By: Cynthia A. Begin
Senior Deputy Commissioner
Non-Depository Institution Supervision