By the Division of Banks

COMMONWEALTH OF MASSACHUSETTS

Suffolk, SS.

COMMISSIONER OF BANKS
MORTGAGE LOAN
ORIGINATOR LICENSING
Docket No. 2010-199-MLO

FINDINGS OF FACT AND
TEMPORARY ORDER TO
CEASE AND DESIST


In the Matter of
JEFFREY PAUL CHALMERS, Individually
Mortgage Loan Originator License No.: MLO76803

and

REAL SOLUTIONS, LLC
Norfolk, Massachusetts


The Commissioner of Banks ("Commissioner") having determined that JEFFREY PAUL CHALMERS ("Jeffrey Chalmers"), has engaged in, or is engaging in, or is about to engage in, acts or practices constituting violations of Massachusetts General Laws chapter 255F, and applicable regulations found at 209 CMR 41.00 et seq., hereby issues the following FINDINGS OF FACT AND TEMPORARY ORDER TO CEASE AND DESIST ("Temporary Order") pursuant to General Laws chapter 255F, section 11(a).

FINDINGS OF FACT

  1. The Division of Banks ("Division"), through the Commissioner, has jurisdiction over the licensing and regulation of persons and entities engaged in the business of a mortgage loan originator in Massachusetts pursuant to Massachusetts General Laws chapter 255F, section 2 and its implementing regulation at 209 CMR 41.00 et seq.
  2. The Division, through the Commissioner, also has jurisdiction over the licensing and regulation of persons and entities engaged in the business of a mortgage lender and mortgage broker in Massachusetts pursuant to Massachusetts General Laws chapter 255E, section 2 and its implementing regulation at 209 CMR 42.00 et seq.
  3. Jeffrey Chalmers is licensed by the Commissioner as a mortgage loan originator under Massachusetts General Laws chapter 255F, section 2. According to records maintained on file with the Division, the Commissioner initially issued a mortgage loan originator license, license number MLO76803, to Jeffrey Chalmers to engage in the business of a mortgage loan originator on or about October 31, 2008.
  4. A review of records available through the Nationwide Mortgage Licensing System ("NMLS") indicate that Jeffrey Chalmers is not licensed as a mortgage loan originator in any other state.
  5. A. Unlicensed Mortgage Broker Activity

  6. Massachusetts General Laws chapter 255E, section 1 defines a mortgage broker as:
  7. Any person who for compensation or gain, or in the expectation of compensation or gain, directly or indirectly negotiates, places, assists in placement, finds or offers to negotiate, place, assist in placement or find mortgage loans on residential property for others.

  8. Massachusetts General Laws chapter 255E, section 2 states in part:
  9. No person shall act as a mortgage broker or mortgage lender with respect to residential property unless first obtaining a license from the commissioner;

  10. The Attorney General's regulation 940 CMR 8.04 (1) states:
  11. It is an unfair or deceptive act or practice for a mortgage broker or lender to make any representation or statement of fact in an advertisement if the representation or statement is false or misleading or has the tendency or capacity to be misleading, or if the mortgage broker or lender does not have sufficient information upon which a reasonable belief in the truth of the representation or statement could be based.

  12. On or about March 4, 2010, the Division's Consumer Assistance Unit received an inquiry from a Massachusetts consumer regarding the licensing status of Real Solutions, LLC and the Division subsequently reviewed information that indicated that Jeffrey Chalmers was operating as a mortgage broker through Real Solutions, LLC.
  13. The Division's review of information available through the Massachusetts Secretary of the Commonwealth's Corporations Division ("Corporations Division") website, indicates that Jeffrey Chalmers was the manager of Real Solutions, LLC. Real Solutions, LLC was incorporated in the Commonwealth on or about January 15, 2005 and information reviewed on the Corporations Division's website indicates that Real Solutions, LLC was dissolved by court order on or about April 30, 2009. Real Solutions is not permitted to carry on any business in the Commonwealth pursuant to Massachusetts General Laws chapter 156C, section 70.
  14. The Division's review of the Real Solutions, LLC website maintained by Jeffrey Chalmers at www.clickncompare.com indicates that Mr. Chalmers is currently soliciting and/or accepting mortgage loan applications from Massachusetts consumers through the website. Additionally, information available on the website indicates Real Solutions, LLC maintains three office locations in Norfolk, Massachusetts; Bristol, New Hampshire; and Providence, Rhode Island.
  15. The Division's review of a "rate sheet" available online at www.dailyrates.info as of April 26, 2010, revealed that Jeffrey Chalmers identified himself as a senior mortgage consultant for Real Solutions, LLC. The "rate sheet" also contained a Massachusetts mortgage broker license number which is legally and exclusively associated with Cooper & Shein LLC a company at which Jeffrey Chalmers had previously been employed. The "rate sheet" failed to identify Cooper & Shein LLC by name and had the tendency to indicate that the license number was affiliated with Real Solutions, LLC. (See Exhibit 1 , attached hereto and incorporated by reference).
  16. B. Engaging in Unauthorized Mortgage Loan Originator Activity

  17. The Division's regulation 209 CMR 41.06(3) states in part:
  18. When the relationship between the Employing Entity and the Mortgage Loan Originator is terminated, the license shall become inactive and the Mortgage Loan Originator shall not be authorized to engage in any residential mortgage loan origination activity unless and until the Mortgage Loan Originator's license has been re-assigned to another Entity and all Division procedures have been followed to re-assign and reactivate such license.

  19. As a result of the events referenced in paragraphs 8 through 11 of this Temporary Order, on or about April 7, 2010, the Division conducted a visitation of Real Solutions, LLC's Norfolk office location to discuss the concerns raised by the Division's review of the information reflected on the "rate sheet" and the website maintained by Jeffrey Chalmers.
  20. In response to the Division's concerns, Mr. Chalmers indicated that he retained the name of Real Solutions, LLC as a marketing tool, and routed all loan applications received through www.clickncompare.com to Cooper and Shein, LLC. A review of the website failed to include any reference to Cooper and Shein, LLC.
  21. The Division's licensing records indicate that as of March 30, 2010, Jeffrey Chalmers was in an "inactive" status and his sponsorship with Cooper and Shein, LLC had been terminated.
  22. The Division's records indicate that Real Solutions, LLC has never applied to the Division to obtain a license to do business as a mortgage lender and/or broker in the Commonwealth of Massachusetts.
  23. As of the date of this Temporary Order, the website maintained by Jeffrey Chalmers continues to be operational and consumers may still apply for a mortgage loan through the website.
  24. CONCLUSIONS OF LAW

  25. Based upon the information contained in Paragraphs 1 through 17, Jeffrey Chalmers has failed to demonstrate and maintain the character, reputation, integrity, and general fitness that would warrant the belief that Jeffrey Chalmers, as a licensed mortgage loan originator will act honestly, fairly, and soundly in the public interest in violation of Massachusetts General Laws chapter 255F, section 4 and the Division's regulations 209 CMR 41.04(2)(d).
  26. Based upon the information contained in Paragraphs 1 through 17, by negotiating, placing, assisting in placement, finding or offering to negotiate, place, assist in placement or finding mortgage loans on residential property for others with the expectation of compensation or gain, without obtaining a mortgage broker license, Jeffrey Chalmers has violated Massachusetts General Laws chapter 255E, section 2 Division's regulations 209 CMR 42.00 et seq.
  27. Based upon the information contained in Paragraphs 1 through 17, by maintaining a website that contained false or misleading language or had the tendency to be false or misleading, Jeffrey Chalmers has violated the Attorney General's regulation 940 CMR 8.04(1)
  28. Based upon the information contained in Paragraphs 1 through 17, by acting in the capacity of a mortgage loan originator while in an inactive status, Jeffrey Chalmers has violated Massachusetts General Laws chapter 255F, section 4(b) and the Division's regulation 209 CMR 41.06(3).
  29. Based upon the information contained in Paragraphs 1 through 17, the Commissioner has determined that:
    1. Jeffrey Chalmers has engaged in, is engaging in, or is about to engage in, acts or practices which warrant the belief that it is not operating honestly, fairly, soundly and efficiently in the public interest in violation of standards governing the licensing and conduct of a mortgage loan originator including, but not limited to, the provisions of the Division's regulations at 209 CMR 41.00 et seq.; and
    2. The public interest will be irreparably harmed by delay in issuing an ORDER TO CEASE AND DESIST to Jeffrey Chalmers.
  30. Based upon the information contained in Paragraphs 1 through 17, had the facts and conditions found therein existed at the time of Jeffrey Chalmers' original mortgage loan originator license application, the Commissioner would have been warranted in refusing to issue such license. Further, the facts and conditions set forth in Paragraphs 1 through 17 present sufficient grounds for the revocation of Jeffrey Chalmers' mortgage loan originator license pursuant to Massachusetts General Laws chapter 255F, section 11 and the Division's regulation at 209 CMR 41.10(21).
  31. ORDER TO CEASE AND DESIST

  32. After taking into consideration the FINDINGS OF FACT and CONCLUSIONS OF LAW stated herein, it is hereby:
  33. ORDERED that Jeffrey Chalmers, Real Solutions, LLC and any and all officers, members, managers, employees, independent contractors, or agents, operating on behalf of Real Solutions, LLC, and their successors or assigns, shall immediately cease engaging in the activities of a mortgage broker, as those activities are defined under Massachusetts General Laws chapter 255E, section 1, relative to any residential property in Massachusetts. Therefore, Real Solutions, LLC is ordered to immediately cease soliciting or accepting, either directly or indirectly, any residential mortgage loan applications from consumers for residential property located in Massachusetts.
  34. IT IS FURTHER ORDERED that Jeffrey Chalmers shall immediately cease engaging in the activities of a mortgage loan originator, as those activities are defined under Massachusetts General Laws chapter 255F, section 1, relative to any residential property in Massachusetts, not otherwise expressly permitted by the terms of this Temporary Order. Therefore, Jeffrey Chalmers is ordered to immediately cease taking, offering or negotiating terms of a residential mortgage loan from consumers for residential property located in Massachusetts.
  35. IT IS FURTHER ORDERED that Jeffrey Chalmers, shall immediately place any fees previously collected from Massachusetts consumers relative to any pending mortgage loan applications in a separate escrow account maintained at a federally insured bank.
  36. IT IS FURTHER ORDERED that Jeffrey Chalmers shall immediately place with one or more qualified broker(s) or lender(s), as appropriate based on the status of the application and with no loss to applicants, all of its pending Massachusetts residential mortgage loan applications. Jeffrey Chalmers shall obtain the prior approval of the Commissioner before placing such applications to the qualified broker(s) or lender(s).
  37. IT IS FURTHER ORDERED that Jeffrey Chalmers and Real Solutions, LLC shall submit to the Commissioner a detailed record, prepared as of the date of submission, of all of the pending residential mortgage loan applications on property located in Massachusetts. The records to be produced shall be submitted to the Commissioner within five (5) days of the effective date of this Temporary Order and shall include all information on file, regarding Jeffrey Chalmers and Real Solutions, LLC open application list, including but not necessarily limited to, the following:
    1. All information on file as of the date of submission regarding Jeffrey Chalmers and Real Solutions, LLC open application list as a mortgage broker and mortgage loan originator including but not limited to, the following: The names of all individuals from whom Jeffrey Chalmers and Real Solutions, LLC has accepted an application for a residential mortgage loan; the applicants' addresses and telephone numbers; the amount of all prepaid loan fees submitted by the customer; the amount of each loan; application status (i.e. filed, submitted to lenders, cleared to close, etc.); scheduled closing dates; rate lock status; and a list identifying the applicable broker or lender with whom the applicants' application was placed. The latter list should include telephone numbers of contact persons familiar with Jeffrey Chalmers and Real Solutions, LLC submitted loans.
  38. Jeffrey Chalmers shall immediately secure all pending residential mortgage loan application files and, to the extent that any original documents must be forwarded to the relevant mortgage lender(s) and or mortgage broker(s) pursuant to Paragraph 28 of this Temporary Order, a copy of such document, correspondence, or paper relating to the mortgage loan shall be retained in Jeffrey Chalmers' books and records and shall be available to the Commissioner, in their entirety, upon request.
  39. Jeffrey Chalmers shall submit payment of all costs associated with the investigation/inspection of the aforementioned matter as set forth in the relevant invoice issued to Jeffrey Chalmers. The payment shall be made payable to the "Commonwealth of Massachusetts" and mailed to Division of Banks, Commonwealth of Massachusetts, 1000 Washington Street, 10 th Floor, Boston Massachusetts 02118-6400 within 30 days of receipt of the invoice.
  40. IT IS FURTHER ORDERED that this Temporary Order shall become effective immediately and shall remain in effect unless set aside, limited, or suspended by the Commissioner or upon court order after review under Massachusetts General Laws chapter 30A.
  41. IT IS FURTHER ORDERED that this Temporary Order shall not be construed as approving any act, practice, or conduct not specifically set forth herein which was, is, or may be in violation of relevant state or federal laws and regulations.
  42. IT IS FURTHER ORDERED that a hearing will be scheduled on this matter to determine whether or not such Temporary Order shall become permanent and final only upon receipt of a written request for such a hearing from Jeffrey Chalmers within twenty (20) days of the effective date of this Temporary Order. If no hearing is requested within this twenty (20) day period, this Temporary Order shall become permanent and final until it is modified or vacated by the Commissioner.

BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS.

Dated at Boston, Massachusetts, this 28th day of April, 2010

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