By the Division of Banks

COMMONWEALTH OF MASSACHUSETTS

Suffolk, SS.

COMMISSIONER OF BANKS
MORTGAGE LOAN ORIGINATOR
LICENSING
Docket No. 2010-198

CONSENT ORDER


In the Matter of
KAREN JAYNE JOHNSON

Mortgage Loan Originator License No.: MLO18951


WHEREAS, KAREN JAYNE JOHNSON ("Karen Johnson"), a licensed mortgage loan originator under Massachusetts General Laws chapter 255F, section 2 and 209 CMR 41.00 et seq., has been advised of her 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 April 7, 2010, whereby, solely for the purpose of settling this matter, Karen Johnson agrees to the issuance of this CONSENT ORDER ("Consent Order") by the Commissioner of Banks ("Commissioner");

WHEREAS, the 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;

WHEREAS, the Commissioner initially issued a mortgage loan originator license, license number MLO18951 to Karen Johnson to engage in the business of a mortgage loan originator on or about May 15, 2008;

WHEREAS, the Division through the Commissioner also has jurisdiction over the licensing and regulation of persons and entities engaged in the business of a mortgage broker in Massachusetts pursuant to Massachusetts General Laws chapter 255E, section 2;

WHEREAS, Karen Johnson formerly held a mortgage broker license, license no. MB0194, under Massachusetts General Laws chapter 255E, section 2, as a sole proprietor operating as Karen Johnson d/b/a/ Moneco Financial ("Moneco Financial");

WHEREAS, on January 8, 2009, pursuant to the authority granted under Massachusetts General Laws chapter 255E, section 8, the Division commenced an examination/inspection (the "2009 examination/inspection") of the books, accounts, papers, records, and files maintained by Moneco Financial;

WHEREAS, the Division's Report of Examination/Inspection on Consumer Compliance (the "Report"), presented the findings of the 2009 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, Karen Johnson has opted to surrender the Massachusetts mortgage broker license for Moneco Financial;

WHEREAS, Karen Johnson has notified the Division that she is seeking to maintain her Massachusetts mortgage loan originator license, number MLO18951; and

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 and Karen Johnson, and stipulate and agree as follows:

  1. Karen Johnson agrees to submit a payment in the amount of five thousand dollars ($5,000.00) in satisfaction of an administrative penalty collected in consideration of Moneco Financial's failure to maintain its books and records in manner that would enable the Commissioner to verify compliance with applicable state and federal laws and regulations. Karen Johnson shall remit payment in full of the amount indicated above, payable to the "Commonwealth of Massachusetts," with the executed copy of the Consent Agreement, to the Office of the Commissioner of Banks, 1000 Washington Street, 10th floor, Boston, Massachusetts 02118. The Division shall remit the payment for deposit into the General Fund of the Commonwealth.
  2. Karen Johnson shall maintain all books, records and accounts relative to her activity as a mortgage loan originator in Massachusetts in a manner sufficient to evidence her compliance with the provisions of General Laws chapter 255F, and applicable state and federal laws and regulations. Karen Johnson shall necessarily comply with all Division directives, including, but not limited to: providing complete and timely access to her books, records and accounts; proper retention of such books and records; and the compilation of reports or preparation of any other information, as requested by the Division.
  3. Karen Johnson shall comply with all laws and regulations applicable to her conducting the business of a mortgage loan originator, including, but not limited to, Massachusetts General Laws chapter 255F, and the Division's regulations 209 CMR 41.00. Such obligations such necessarily include a duty to ensure that all information that she is required to enter and maintain in the Nationwide Mortgage Licensing System ("NMLS") is accurate and updated in a timely manner.
  4. This Consent Order shall become effective immediately upon the date of its issuance.
  5. 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.
  6. 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 7th day of April, 2010

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