By the Division of Banks

COMMONWEALTH OF MASSACHUSETTS

Suffolk, SS.

COMMISSIONER OF BANKS
MORTGAGE BROKER AND
MORTGAGE LOAN
ORIGINATOR LICENSING
Docket No. 2009-116-CO

CONSENT ORDER


In the Matter of
EAST COAST EQUITY & INVESTMENTS, LLC
Mortgage Broker License No. MB1463

and

SCOTT M. COCHRANE
Mortgage Loan Originator License No. MLO6173


WHEREAS, EAST COAST EQUITY & INVESTMENTS, LLC and SCOTT M. COCHRANE (collectively, "East Coast Equity" or the "Licensee"), a licensed mortgage broker under Massachusetts General Laws chapter 255E, section 2 and a licensed mortgage loan originator under Massachusetts General Laws chapter 255F, section 2, respectively, have been advised of their right to Notice and Hearing pursuant to Massachusetts General Laws chapter 30A, section 10, 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 December 29, 2009, whereby, solely for the purpose of settling this matter, East Coast Equity and Scott Cochrane agree to the issuance of this CONSENT ORDER ("Consent Order") by the Commissioner of Banks ("Commissioner");

WHEREAS, the Division of Banks ("Division"), through the Commissioner, has jurisdiction over the licensing and regulation of those engaged in the business of a mortgage broker in Massachusetts pursuant to Massachusetts General Laws chapter 255E, section 2 and the Division's regulations 209 CMR 42.00 et seq.;

WHEREAS, the Division, through the Commissioner, has jurisdiction over the licensing and regulation of persons engaged in the business of a mortgage loan originator in Massachusetts pursuant to Massachusetts General Laws chapter 255F, section 2 and the Division's regulations 209 CMR 41.00 et seq.;

WHEREAS, Scott Cochrane at all relevant times was the Manager and 90% owner of East Coast Equity and, according to records maintained by the Division, identified himself as President and "control person," as that term is defined, of East Coast Equity;

WHEREAS, on or about November 25, 2008, pursuant to the authority granted under Massachusetts General Laws chapter 255E, section 8, the Division commenced an examination/inspection (the "2008 examination/inspection") of the books, accounts, papers, records, and files maintained by East Coast Equity;

WHEREAS, the Division's Report of Examination/Inspection on Consumer Compliance (the "Report")for East Coast Equity which was prepared as of November 25, 2008, 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 in Massachusetts;

WHEREAS, on or about October 22, 2009, Scott Cochrane appeared at the Division's offices for an informal conference to discuss the matters raised in the Report;

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, East Coast Equity, and Scott Cochrane, and stipulate and agree as follows:

  1. Immediately upon the execution of this Consent Order, East Coast Equity will refrain from negotiating, soliciting, arranging, providing or accepting any Massachusetts residential mortgage loan application, or assisting any consumer in completing such application, or otherwise engaging in the mortgage broker business, as that term is defined under General Laws chapter 255E, section 1.
  2. Immediately upon the execution of this Consent Order, Scott Cochrane will surrender East Coast Equity's Massachusetts mortgage broker license MB1463 by: (a) returning the original license certificate to the Division at One South Station, 3 rd Floor, Boston, Massachusetts 02110; and (b) submitting a " Request to Surrender" filing to the Division, on behalf of East Coast Equity, through the Nationwide Mortgage Licensing System (NMLS).
  3. East Coast Equity will refrain from submitting an application to obtain a mortgage broker and/or mortgage lender license from the Commissioner for a period of thirty-six (36) months from the effective date of this Consent Order.
  4. To the extent that East Coast Equity wishes to resume business as a mortgage broker at the expiration of the 36-month term as set forth above, East Coast Equity shall be required to submit a completed application to obtain the relevant license(s) from the Commissioner. Unless the Commissioner, in his sole discretion, agrees to accept such an application earlier, East Coast Equity agrees not to submit such an application until the expiration of the 36-month term. The Commissioner shall have all of the discretion set forth within General Laws chapter 255E, section 4 and the Division's regulation 209 CMR 42.00 et seq. in determining whether to issue a license to East Coast Equity to conduct the licensed business, provided however, that any such application shall not be denied solely on the basis of this Consent Order.
  5. Within thirty (30) days of the effective date of this Consent Order, East Coast Equity shall submit payment in satisfaction of the full amount owed for the costs of the Division's 2008 examination/inspection as set forth in the relevant invoice issued to East Coast Equity. The payment shall be made payable to the "Commonwealth of Massachusetts" and mailed to Division of Banks, Commonwealth of Massachusetts, P.O. Box 3952, Boston, Massachusetts 02241-3952. It being understood that failure to submit payment shall necessarily present grounds for a denial of any license application submitted to the Division by East Coast Equity, or its owners, whether submitted before or after the expiration of the 36-month term referenced above.
  6. The provisions of this Consent Order shall not be construed to bar or prevent Scott Cochrane, who remains licensed as a mortgage loan originator under General Laws chapter 255F, from engaging in the activities of a mortgage loan originator and/or accepting employment as a licensed mortgage loan originator with another licensed mortgage lender or mortgage broker.
  7. Scott Cochrane agrees that in the event that he accepts employment as a mortgage loan originator with another entity licensed by the Division, he shall be prohibited for a period of thirty-six (36) months from the effective date of this Consent Order from taking an ownership position in such licensee, and from participating as a control person for 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.
  8. The provisions of this Consent Order shall not limit, estop, or otherwise prevent any other state agency or department, from taking any other action affecting East Coast Equity or Scott Cochrane.
  9. This Consent Order shall become effective immediately upon the date of its issuance.
  10. In accordance with the terms of the Consent Agreement entered by East Coast Equity, Scott Cochrane, and the Commissioner, East Coast Equity and Scott Cochrane have waived all rights of appeal that they may have relative to the Consent Order or any of its provisions.
  11. 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.
  12. This Consent Order and the Consent Agreement are the complete documents representing the resolution of this matter.

BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS.

Dated at Boston, Massachusetts, this 29th day of December, 2009

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