By the Division of Banks




COMMONWEALTH OF MASSACHUSETTS

Suffolk, SS.

COMMISSIONER OF BANKS
MORTGAGE LOAN
ORIGINATOR LICENSING
Docket No. 2009-111-CO

CONSENT ORDER


In the Matter of
JOHN ANTHONY MERCAUTO

Mortgage Loan Originator License No. MLO6441


WHEREAS, JOHN ANTHONY MERCAUTO ("John Mercauto" or the "Licensee"), a licensed mortgage loan originator under Massachusetts General Laws chapter 255F, section 2, has been advised of his 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 September 22, 2009, whereby, solely for the purpose of settling this matter, John Mercauto agrees 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 persons engaged in the business of a mortgage loan originator in Massachusetts pursuant to Massachusetts General Laws chapter 255F, section 2;

WHEREAS, John Mercauto at all relevant times has been the President of Mortgage Funding Corp., a licensed mortgage broker under Massachusetts General Laws, chapter 255E, section 2;

WHEREAS, on November 18, 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 Mortgage Funding Corp;

WHEREAS, The Division's Report of Examination/Inspection on Consumer Compliance (the "Report"), which was issued to Mortgage Funding Corp. on or about March 27, 2009, 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 March 27, 2009, based upon the findings of the 2008 examination/inspection, the Division issued a FINDINGS OF FACT AND TEMPORARY ORDER TO CEASE AND DESIST (the "Temporary Order"), Docket No. 2009-004, against Mortgage Funding Corp.;

WHEREAS, Paragraph 40 of the Temporary Order provides, in pertinent part, that "Mortgage Funding and any and all officers . . . operating on behalf of Mortgage Funding . . . shall immediately cease engaging in the activities of: (a) a mortgage broker, as those activities are defined under Massachusetts General Laws chapter 255E, section 1, and (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 ...." [Emphasis supplied.];

WHEREAS, John Mercauto agrees to enter this Consent Order solely for the purpose of settling this matter and without admitting any allegations or implications of fact or the existence of any violations of applicable state and federal statutes or rules;

WHEREAS, the parties now seek to resolve by mutual agreement, the matters identified in the Temporary Order;

WHEREAS, in recognition of the Division and John Mercauto having reached the following mutual agreement under this Consent Order to resolve the matters raised by the Temporary Order, the Commissioner has terminated the Temporary Order on this 22nd day of September, 2009.

ORDER

NOW COME the parties in the above-captioned matter, the Division and John Mercauto, and stipulate and agree as follows:

  1. Immediately upon the execution of this Consent Order, John Mercauto 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 engage in the mortgage loan originator business, as that term is defined under General Laws chapter 255F, section 1.
  2. Immediately upon the execution of this Consent Order, John Mercauto will surrender his Massachusetts mortgage loan originator license no. MLO6441 by submitting a " Request to Surrender" filing to the Division through the Nationwide Mortgage Licensing System (NMLS).
  3. John Mercauto will refrain from submitting an application to obtain a mortgage loan originator license from the Commissioner for a period of thirty-six (36) months from the effective date of the Temporary Order.
  4. To the extent that John Mercauto wishes to resume business as a mortgage loan originator at the expiration of the 36-month term as set forth above, John Mercauto shall be required to submit a completed application to obtain the relevant license from the Commissioner. Unless the Commissioner, in his sole discretion, agrees to accept such an application earlier, John Mercauto 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 255F, section 4 and the Division's regulation 209 CMR 41.00 et seq. in determining whether to issue a license to John Mercauto to conduct the licensed business, provided however, that any such application shall not be denied solely on the basis of the Temporary Order.
  5. 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 John Mercauto.
  6. This Consent Order shall become effective immediately upon the date of its issuance.
  7. In accordance with the terms of the Consent Agreement entered by John Mercauto and the Commissioner, John Mercauto has waived all rights of appeal that he may have relative to the Temporary Order and this Consent Order or any of its provisions.
  8. 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.
  9. This Consent Order and the Consent Agreement are the complete documents representing the resolution of this matter. There are no other agreements, promises, representations, or warranties other than those set forth in this Consent Order and the Consent Agreement.

BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS.

Dated at Boston, Massachusetts, this 22nd day of September, 2009

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