COMMONWEALTH OF MASSACHUSETTS
COMMISSIONER OF BANKS
MORTGAGE BROKER LICENSING
Docket No. 2009-008-R
ORDER REVOKING MORTGAGE BROKER LICENSE
In the Matter of
FARKHANDA TARAR SHAH
d/b/a EASTERN MORTGAGE
Mortgage Broker License No(s). MB4194
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 pursuant to Massachusetts General Laws chapter 255E and the Division's regulations 209 CMR 42.00 et seq..
WHEREAS, 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 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 broker.
WHEREAS, on or about April 22, 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 Farkhanda Tarar Shah d/b/a Eastern Mortgage ("Farkhanda Shah" or the "Respondent") to evaluate the Respondent's compliance with the laws, regulations, and regulatory bulletins applicable to the conduct of a mortgage broker business in Massachusetts. A Report of Examination/Inspection (the "Report"), which presented the Division's findings from the examination/inspection, was prepared by the Division and was issued to Farkhanda Shah on February 3, 2009.
WHEREAS, pursuant to General Laws 255E sections 6, 7(b), and 12 and General Laws chapter 255F section 12, the Commissioner issued FINDINGS OF FACT AND TEMPORARY ORDER TO CEASE AND DESIST & ORDER TO SHOW CAUSE AND NOTICE OF RIGHT TO A HEARING, Docket No. 2009-008-OTSC (the "Order and Notice"), against Farkhanda Shah on June 8, 2009, based upon the findings of the Report, which alleged Farkhanda Shah's failure to demonstrate and maintain the character, reputation, integrity, and general fitness that would warrant the belief that its mortgage broker business would 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 42.06(2)(c), which Order and Notice is incorporated herein by reference.
WHEREAS, the Order and Notice was sent to Farkhanda Shah via first class mail, postage prepaid and by certified mail, return receipt requested, to her licensed address of record at 367 Broadway, Somerville, Massachusetts 02145. The Order and Notice was also sent to Farkhanda Shah via electronic mail, to the personal electronic mail account she had designated in the Division's records .
WHEREAS, the Order and Notice required Farkhanda Shah 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)(d).
WHEREAS, the Order and Notice stated that failure to file an Answer within 21 days could result in a default judgment against Farkhanda Shah.
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, or to submit a request for a hearing on the Temporary Order, within the prescribed time-frame or at any subsequent time prior to the effective date of this Order Revoking Mortgage Broker License. Therefore, the Temporary Order became a Permanent Order as of June 30, 2009 and a default judgment may be entered against Farkhanda Shah.
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
- The Commissioner finds that the matters asserted, as set forth in paragraphs 1 through 47, inclusive, of the Order and Notice shall constitute findings of fact, and that paragraphs 48 through 62 of the Order and Notice shall constitute conclusions of law.
- The Commissioner finds that Farkhanda Shah has engaged in acts or practices which pursuant to Massachusetts General Laws, chapter 255E, section 6 constitute sufficient grounds to revoke Farkhanda Shah's mortgage broker license no. MB4194 in the Commonwealth.
The Commissioner finds that the Order and Notice was delivered to Farkhanda Shah in compliance with the Standard Adjudicatory Rules of Practices and Procedures, 801 CMR 1.01(4)(c) and Massachusetts General Laws, chapter 30A.
After taking into consideration the record in this matter, it is hereby:
- ORDERED that Farkhanda Shah's Massachusetts mortgage broker license no. MB4194 is revoked.
- ORDERED that the revocation of Farkhanda Shah's mortgage broker license no. MB4194 shall become effective immediately.
BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS.
Dated at Boston, Massachusetts, this 14th day of July, 2009
By: Steven L. Antonakes
Commissioner of Banks
Commonwealth of Massachusetts