By the Division of Banks

COMMONWEALTH OF MASSACHUSETTS

Suffolk, SS.

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

ORDER REVOKING MORTGAGE BROKER
AND MORTGAGE LENDER LICENSES


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

Mortgage Company License No(s). MC5128 and MC5130


PRELIMINARY STATEMENT AND REGULATORY BACKGROUND

WHEREAS, the Division of Banks ("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 broker and mortgage lender pursuant to Massachusetts General Laws chapter 255E et seq.

WHEREAS, mortgage brokers and mortgage lenders in Massachusetts are licensed and regulated under Massachusetts General Laws chapter 255E, and applicable regulations found at 209 CMR 42.00 et seq., which are administered and enforced by the Division. Pursuant to Massachusetts General Laws chapter 255E, section 8, the Division is authorized to inspect the books, accounts, papers, records, and files of mortgage brokers and mortgage lenders 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 broker or mortgage lender.

WHEREAS, 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 Mortgage, Inc. ("Castle Point" or the "Respondent") to evaluate the Respondent's compliance with the laws, regulations, and regulatory bulletins applicable to the conduct of a mortgage broker and mortgage lender business in Massachusetts. A Report of Examination/Inspection (the "Report") was issued to the Respondent on March 27, 2009.

WHEREAS, pursuant to General Laws chapter 255E, section (7)(b), the Commissioner issued an ORDER TO SHOW CAUSE AND NOTICE OF RIGHT TO A HEARING, Docket No. 2009-007 (the "Order and Notice"), against the Respondent on March 27, 2009, based upon the findings of the Report, which alleged the Respondent's failure to demonstrate and maintain the character, reputation, integrity, and general fitness that would warrant the belief that its mortgage lender and 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 42.04(2)(c) and 42.06(2)(c) which Order and Notice is incorporated herein by reference.

WHEREAS, the Order and Notice was sent to the Respondent via first class mail, postage prepaid and by certified mail, return receipt requested, to the Respondent's licensed address of record at 6800 Deerpath Road, Suite 105, Elkridge, Maryland 21075.

WHEREAS, the Order and Notice required the Respondent to file an Answer or otherwise respond to the Charges contained in the Order and Notice within twenty-one (21) days of the effective date of the Order and Notice, pursuant to the Massachusetts Standard Adjudicatory Rules of Practices and Procedures, 801 CMR §§1.01(6)(e).

WHEREAS, the Order and Notice stated that failure to file an Answer within 21 days could result in a default judgment against the Respondent.

WHEREAS, the Massachusetts Standard Adjudicatory Rules of Practices and Procedures, 801 CMR §§1.01(4)(c) states in part, "Notice of actions...from the adjudicating Agency...shall be presumed to be received upon the day of hand-delivery or, if mailed, three days after deposit in the U.S. mail..."

WHEREAS, the Respondent failed to file an Answer within the prescribed time period.

WHEREAS, the Massachusetts General Laws, chapter 30A, section 10 relating to the Commonwealth's administrative procedures states in part:

"agencies may (1) place on any party the responsibility of requesting to request a hearing; (2) make informal disposition of any adjudicatory proceeding by...default."

WHEREAS, Massachusetts General Laws chapter 255E, section 6 states in part:
The commissioner may suspend or revoke any license issued pursuant to this chapter if said commissioner finds that:

(i) the licensee has violated any provision of this chapter or any rule or regulation adopted hereunder, or any other law applicable to the conduct of its business; or

(ii) any fact or condition exists which, if it had existed at the time of the original application for such license, would have warranted the commissioner in refusing to issue such license.

FINDINGS OF FACT and CONCLUSIONS OF LAW

  1. The Commissioner has determined that the matters asserted, as set forth in paragraphs 9 through 39, inclusive, of the Order and Notice shall constitute findings of fact, and that paragraphs 40 through 51 of the Order and Notice shall constitute conclusions of law.
  2. The Commissioner has determined that Respondent has engaged in acts or conduct which pursuant to Massachusetts General Laws, chapter 255E, section 6 constitute sufficient grounds to revoke the Respondent's mortgage broker and mortgage lender licenses, numbers MC5128 and MC5130 in the Commonwealth.
  3. The Commissioner finds that Notice was given in compliance with the Standard Adjudicatory Rules of Practices and Procedures, 801 CMR §§1.01(4)(c) and Massachusetts General Laws, chapter 30A.

    ORDER

    After taking into consideration the record, it is hereby:

  4. ORDERED that Castle Point's mortgage broker and mortgage lender licenses, numbers MC5128 and MC5130 are revoked.
  5. ORDERED that the revocation of Castle Point's mortgage broker and mortgage lender licenses, numbers MC5128 and MC5130 shall become effective immediately.


BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS.

Dated at Boston, Massachusetts, this 19th day of May, 2009

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