By the Division of Banks

COMMONWEALTH OF MASSACHUSETTS

Suffolk, SS.

COMMISSIONER OF BANKS
MORTGAGE BROKER
MORTGAGE LENDER AND
MORTGAGE LOAN ORIGINATOR
LICENSING

CEASE DIRECTIVE

In the Matter of
KENNETH W. TERRILL, Individually
San Diego, California


The Commissioner of Banks ("Commissioner") is charged with the administration of Massachusetts General Laws chapter 255E, and applicable regulations found at 209 CMR 42.00 et seq., relating to the licensing of mortgage lenders and mortgage brokers; and Massachusetts General Laws chapter 255F and applicable regulations found at 209 CMR 41.00 et seq., relating to the licensing of mortgage loan originators.

Pursuant to the authority granted by Massachusetts General Laws chapter 255E and Massachusetts General Laws chapter 255F, the Commissioner has investigated the activities of KENNETH W. TERRILL ("Kenneth Terrill"), with a mailing address of 955 Harbor Island Drive, #L 42, pmb 81344, San Diego, CA 92138-1344, to determine if Kenneth Terrill, either acting individually and/or on behalf of Amwest Capital Mortgage, Inc. ("Amwest Capital"), has engaged in the business of, or is about to engage in, acts or practices constituting violations of Massachusetts General Laws chapter 255E, and Massachusetts General laws chapter 255F. Based upon such investigation, the Division hereby issues the following CEASE DIRECTIVE ("Cease Directive") as a result of the findings alleged herein.

A. FINDINGS OF FACT

I. Unlicensed Activity

  1. Massachusetts General Laws chapter 255E, section 2 relative to the licensing requirements for entities engaged in the business of a mortgage lender and/or mortgage broker states in part:

    No person shall act as a mortgage broker or mortgage lender with respect to residential property unless first obtaining a license from the commissioner.

  2. 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 lender and mortgage broker in Massachusetts pursuant to Massachusetts General Laws chapter 255E, section 2 and its implementing regulation 209 CMR 42.00 et seq.
  3. The Division also has jurisdiction over the licensing and regulation of individuals engaged in mortgage loan originator activity pursuant to Massachusetts General Laws chapter 255F, section 2 and its implementing regulation 209 CMR 41.00 et seq.
  4. Effective July 31, 2009, Massachusetts General Laws chapter 255F, section 2(a), states, in part: (Effective July 1, 2008 until July 31, 2009, M.G.L. chapter 255F, section 2 stated: "No person shall act as a mortgage loan originator unless such person has first obtained a mortgage loan originator license from the commissioner. An entity shall not knowingly employ or retain a mortgage loan originator unless the mortgage loan originator is licensed under this chapter.")

    No individual shall act as a mortgage loan originator with respect to any dwelling unless such person has first obtained a mortgage loan originator license from the commissioner or is exempt from the licensure requirement ... No person shall knowingly employ or retain a mortgage loan originator unless the mortgage loan originator is licensed under this chapter or is exempt from the licensure requirement.

  5. On or about May 12, 2010, the Division reviewed the following websites: www.houserichandcashpoor.com, www.reversemortgageadvisor.com, and www.reversemortgageadvisor.com all of which identify Kenneth Terrill as a reverse mortgage consultant.
  6. The websites indicate that Mr. Terrill is currently soliciting and/or accepting mortgage loan applications from Massachusetts consumers through the website.
  7. The websites www.houserichandcashpoor.com and www.reversemortgageadvisor.com contain links to the following eight webpages: Home Page; About Us; Get a Quote by e-mail; Reverse Mortgage Types; Closing Costs; Counseling; How to Apply; and Mortgage Insurance. Each of the webpages contains certain information relative to reverse mortgage loans and further identifies Kenneth Terrill as a reverse mortgage consultant.
  8. The websites referenced in Paragraph 7 also indicate that inquires regarding reverse mortgage loans are "welcomed from all 50 states."
  9. The "How to Apply" webpage includes information on how applicants would be able to apply for a reverse mortgage loan including options to apply for reverse mortgage loans via telephone and receiving quotes via the webpage.
  10. The website www.fhareversemortgages.com contains links to the following six webpages: Home Page; About Us; Requesting Information; Reverse Mortgage Fact; and Common Concerns. Each of the webpages contains certain information relative to reverse mortgage loans and either identifies Kenneth Terrill as a reverse mortgage consultant or directs consumers to contact him directly by phone or email with any questions.
  11. The website referenced in Paragraph 10 lists the following information on the "About Us" page: "Ken Terrill - Reverse Mortgages since 1994, Amwest Capital Mortgage, Home Office: 465 East Grand Ave, Escondido, Ca. 92025, Toll free: 800-686-0238, Fax: 760-743-8114, or Toll Free Fax: 800-811-2701, An F.H.A. & V.A. approved lender."
  12. The "About Us" page referenced above also states, in part: "Mr. Terrill has been in the lending business since 1964. In 1982 the Terrill's formed Terrill Financial, Inc. and became an independent Mortgage Originator. The name was changed to American Mortgage Professionals, Inc. in 1992 to facilitate better placement in the Yellow Pages. When Mr. Terrill turned 65 in 2006 Management was turned [sic] over to a trusted associate of the last 20 years. American Mortgage Professionals was allowed to die a peaceful death. The new Company is Amwest Capital Mortgage. The company is licensed by The California Department of Real Estate. It is a member of the Better Business Bureau, The National Association of Reverse Mortgage Lenders, and the local Chamber of Commerce." The aforementioned language presents the appearance that Mr. Terrill is affiliated with Amwest Capital.
  13. The Division's records indicate that Amwest Capital Mortgage applied to the Division on or about July 25, 2008 to obtain a license to do business as a mortgage broker in the Commonwealth of Massachusetts. The Division's records further indicate that the application was denied on or about September 2, 2009.
  14. The Division's records indicate that Kenneth Terrill has never applied to the Division to obtain a license to operate as a mortgage loan originator in the Commonwealth of Massachusetts.
  15. As of the date of this Cease Directive, the websites maintained by Kenneth Terrill continue to be operational and Massachusetts consumers may still apply for a reverse mortgage loan through the websites.

    B. CEASE DIRECTIVE

  16. Kenneth Terrill and any agents operating on behalf of Kenneth Terrill and their successors or assigns, shall immediately cease engaging in the activities of a mortgage lender and/or mortgage broker, as those activities are defined under Massachusetts General Laws chapter 255E, section 1, relative to any residential property in Massachusetts. Therefore, Kenneth Terrill 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.
  17. Kenneth Terrill 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. Therefore, Kenneth Terrill is ordered to immediately cease taking, offering or negotiating terms of a residential mortgage loan from consumers for residential property located in Massachusetts.
  18. Kenneth Terrill shall submit to the Commissioner a detailed record, prepared as of the date of submission, of all 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 Cease Directive and shall include all information on file, regarding Kenneth Terrill's open application list, including but not necessarily limited to, the following:

    All information on file as of the date of submission regarding Kenneth Terrill 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 Kenneth Terrill 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 Kenneth Terrill submitted loans.

  19. Kenneth Terrill must submit a response within five (5) of receipt of this Cease Directive. The response must indicate whether Kenneth Terrill will seek to be licensed as mortgage lender, mortgage broker and/or mortgage loan originator. The response submitted by Kenneth Terrill must also include a signed copy of the enclosed affidavit, attesting that Kenneth Terrill will immediately cease from engaging in any unlicensed or unauthorized mortgage lending, brokering, loan originator activity including any use of solicitations or advertising in Massachusetts until such time as a license and/or approval to engage in such activities is issued by the Commissioner.

BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS.

Dated at Boston, Massachusetts, this 10th day of September, 2010

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