By the Division of Banks

COMMONWEALTH OF MASSACHUSETTS

Suffolk, SS.

COMMISSIONER OF BANKS
MORTGAGE BROKER
LICENSING
Docket No. 2009-016-CO

CONSENT ORDER


In the Matter of
AMERICAN ADVISORS GROUP .

Mortgage Broker License No. MB5106


WHEREAS American Advisors Group ("American Advisors" or the "Corporation") with its main business office located at 16808 Armstrong Avenue, Suite 220, Irvine, California, has been advised of its right to Notice and Hearing pursuant to General Laws chapter 255E, section 7(a), 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 February 2, 2010, whereby, solely for the purpose of settling this matter, and without admitting any allegations or implications of fact or the existence of any violation of state or federal laws and regulations governing the conduct and operation of a mortgage broker, American Advisors agrees to the issuance of this CONSENT ORDER ("Consent Order") by the Commissioner of Banks ("Commissioner");

WHEREAS, On September 24, 2008, the Division issued a TEMPORARY ORDER TO CEASE AND DESIST, Docket No. 2008-022 (the "Temporary Order"), against American Advisors based upon information reflected in a consumer solicitation regarding reverse mortgage loans received by Massachusetts consumers from American Advisors which contained language that the Division alleged had the tendency to be false or misleading;

WHEREAS, on October 21, 2008 the Commissioner and American Advisors entered into a STIPULATION AND CONSENT TO THE ISSUANCE OF A CONSENT ORDER ("2008 Consent Order") for the purpose of settling the matters raised by the Temporary Order;

WHEREAS, on or about June 29, 2009, based upon an investigation, the Division issued an ORDER TO SHOW CAUSE AND NOTICE OF RIGHT TO A HEARING ("2009 Order and Notice"), Docket No. 2009-016, against American Advisors. The 2009 Order and Notice alleged certain Charges and violations of law.

WHEREAS, on or about July 17, 2009, American Advisors filed a response to the 2009 Order and Notice with the Division whereby the Corporation disputed certain of the Division's findings and alleged violations of law contained in the 2009 Order and Notice. By its response, American Advisors further reserved its right to proceed to an administrative hearing in accordance with Massachusetts General Laws chapter 30A;

WHEREAS, without this Consent Order constituting an admission by American Advisors of any allegations made or implied by the provisions of the 2009 Order and Notice; solely for the purpose of settlement of all alleged violations without protracted administrative proceedings and judicial review, American Advisors hereby waives its right to complete the hearing process relative to this proceeding and affirms that it is willing to take all necessary action as set forth in this Consent Order; and

WHEREAS, in recognition of the Division and American Advisors having reached the following mutual agreement under this Consent Order to fully resolve the matters raised by the 2009 Order and Notice, the Commissioner has terminated the 2009 Order and Notice on this 2nd day of February, 2010.

ORDER

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

  1. American Advisors agrees not to renew its Massachusetts mortgage broker license number MB5106 which expired on December 31, 2009. Having voluntarily agreed to not renew its license, American Advisors, its officers, directors, employees, agents, successors and assigns, and those persons in active participation with it, directly or indirectly, will refrain from originating or accepting any additional Massachusetts residential mortgage loan applications, or otherwise engaging in the mortgage broker business as a licensed mortgage broker, as that term is defined under General Laws chapter 255E, section 1, except as specifically provided in this Consent Order.
  2. American Advisors shall continue to fully process the five (5) Massachusetts residential mortgage loan applications which are pending in the Corporation's loan application portfolio as of the date December 31, 2009. (Loan numbers: 0120091217002, 0120091211005, 0120091216003, 0120091106002 and 0120091026006). American Advisors shall continue to process the aforementioned loans under the following terms:
    1. American Advisors shall provide to the Division for review, a complete closing package upon settlement of each of the mortgage loans. Each package shall be forwarded to the Division for review within ten (10) days of settlement.
  3. Immediately upon the cessation of its Massachusetts residential mortgage business, as described in Paragraph 2 of this Consent Order American Advisors will return the Corporation's original license certificate to the Division at One South Station, 3rd Floor, Boston, Massachusetts 02110.
  4. American Advisors and any of its executive officers or directors who are currently of record with the Division will refrain from submitting an application to obtain a mortgage lender, mortgage broker and/or mortgage loan originator license from the Commissioner for a period of twenty-four (24) months from December 31, 2009.
  5. To the extent that American Advisors or any of its executive officers or directors who are currently of record with the Division, or their successors or assigns, wish to resume or engage in business as a mortgage lender and/or mortgage broker at the expiration of the 24-month term as set forth above, American Advisors 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 review such an application earlier. 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 American Advisors or any of its executive officers or directors, who are currently of record with the Commissioner or their successors or assigns to conduct the licensed business, provided however, that any such application shall not be denied solely on the basis of this Consent Order.
  6. To the extent that the Corporation's executive officers or directors who are currently of record with the Division, wish to resume or engage in business as a mortgage loan originator at the expiration of the 24-month term as set forth above, such individual 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 review such an application earlier. The Commissioner shall have all of the discretion set forth within General Laws chapter 255F et seq., and the Division's regulation at 209 CMR 41.00 et seq., in determining whether to issue a license to such executive officers or directors, to engage in the licensed activity, provided however, that any such application shall not be denied solely on the basis of this Consent Order.
  7. American Advisors shall retain all Massachusetts mortgage loan application files, and the disclosures, correspondence, papers, and records relating to the loan, for a minimum of three years. It being understood that such records shall be made available to the Division, in their entirety, within 72 hours of a request from the Division.
  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 American Advisors and/or any of its officers, directors, or managers.
  9. This Consent Order shall become effective immediately upon the date of its issuance.
  10. The provisions of this Consent Order shall be binding upon American Advisors and its current officers, directors, employees, agents, and their successors and assigns.
  11. In accordance with the terms of the Consent Agreement entered by American Advisors and the Commissioner, American Advisors has waived all rights of appeal that it may have.
  12. 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.
  13. 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, which replaces and supersedes all prior agreements between American Advisors and the Commissioner.

BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS.

Dated at Boston, Massachusetts, this 2nd day of February, 2010

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