By the Division of Banks

COMMONWEALTH OF MASSACHUSETTS

Suffolk, SS.

COMMISSIONER OF BANKS
MORTGAGE LENDER
MORTGAGE BROKER
AND
MORTGAGE LOAN ORIGINATOR
LICENSING
Docket No. 2010-368

ORDER TO CEASE AND DESIST

In the Matter of
SKG INVESTMENT, LLC

and

GREG GIBSON, Individually

Columbus, Ohio


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 brokers and mortgage lenders; 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 255F , the Commissioner has investigated the activities of SKG INVESTMENT, LLC ("SKG") located at 545 Metro Place, Dublin, Ohio, and Greg Gibson with a mailing address of 2642 Birchtree Way, Columbus, Ohio to determine if SKG and Greg Gibson have engaged in the business of, or are about to engage in, acts or practices constituting violations of Massachusetts General Laws chapter 255E and General Laws chapter 255F. Based upon such investigations, the Division hereby issues the following ORDER TO CEASE AND DESIST as a result of the findings alleged herein.

A. FINDINGS OF FACT

Unlicensed Activity

  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 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.
  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 loan originator in Massachusetts pursuant to Massachusetts General Laws chapter 255F, section 2 and its implementing regulation at 209 CMR 41.00 et seq.
  3. Massachusetts General Laws chapter 255E, section 2 relative to the licensing requirements for entities engaged in the business of a mortgage broker and/or mortgage lender states in part:
  4. No person shall act as a mortgage broker or mortgage lender with respect to residential property unless first obtaining a license from the commissioner.

  5. Massachusetts General Laws chapter 255E, section 1 defines a mortgage lender as:
  6. any person engaged in the business of making mortgage loans, or issuing commitments for mortgage loans.



  7. Massachusetts General Laws chapter 255E, section 1 defines a mortgage broker as:
  8. 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.



  9. Massachusetts General Laws chapter 255F, section 2 relative to the licensing requirements for a mortgage loan originator states:
  10. No natural 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.

  11. On or about August 17, 2010 the Division's Consumer Assistance Unit received a complaint filed by a Massachusetts consumer regarding the unlicensed activities of SKG and Greg Gibson in the Commonwealth.
  12. The Division's review of the documents and correspondence between the consumer and Greg Gibson who appeared to be acting as a mortgage loan originator on behalf of SKG included certain documents including but not limited to, a Uniform Residential Loan Application, mortgage loan commitment and a mortgage loan pre-approval letter that appeared to have been prepared on behalf SKG.
  13. The Division's review of the documents indicate that Greg Gibson identified himself as the mortgage loan originator on the Uniform Residential Loan application and furthermore that SKG was identified as the mortgage lender on a mortgage loan commitment, verification of deposit form and verification of employment form.
  14. The Division's records indicate that SKG has never applied to the Division to obtain a license to operate as a mortgage lender or mortgage broker in the Commonwealth of Massachusetts.
  15. The Division's records indicate that Greg Gibson has never applied to the Division to obtain a license to operate as a mortgage loan originator in the Commonwealth of Massachusetts.
  16. B. ORDER TO CEASE AND DESIST

  17. SKG and any and all officers, members, managers, employees, independent contractors, or agents, operating on its behalf, 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, SKG 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.
  18. Greg Gibson 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, Greg Gibson is ordered to immediately cease taking, offering or negotiating terms of a residential mortgage loan from consumers for residential property located in Massachusetts.
  19. SKG 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. SKG shall obtain the prior approval of the Commissioner before placing such applications to the qualified broker(s) or lender(s).
  20. SKG 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 two (2) days of the effective date of this Order to Cease and Desist and shall include all information on file, regarding SKG's open application list, including but not necessarily limited to, the following:
  21. All information on file as of the date of submission regarding SKG's open application list as a mortgage lender and/or mortgage broker including but not limited to, the following: The names of all individuals from whom SKG 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 SKG submitted loans.

  22. Greg Gibson shall submit to the Commissioner a detailed record, prepared as of the date of submission, of all of his pending residential mortgage loan applications on property located in Massachusetts. The records to be produced shall be submitted to the Commissioner within two (2) days of the effective date of this Order to Cease and Desist and shall include all information on file, regarding Greg Gibson's open application list, including but not necessarily limited to, the following:
  23. All information on file as of the date of submission regarding Greg Gibson's open application list as a mortgage loan originator including but not limited to, the following: The names of all individuals from whom Greg Gibson 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 Greg Gibson submitted loans.

  24. SKG must submit a response within five (5) days of receipt of this Order to Cease and Desist. This response must indicate whether SKG will seek to be licensed as a mortgage lender and/or mortgage broker. The response submitted must also include a signed copy of the enclosed affidavit, attesting that SKG will immediately cease from engaging in any unlicensed or unauthorized mortgage lender or mortgage broker activity until such time as a license and/or approval to engage in such activities is issued by the Commissioner.
  25. Greg Gibson must submit a response within five (5) days of receipt of this Order to Cease and Desist. The response must indicate whether Greg Gibson will seek to be licensed as a mortgage loan originator. The response submitted by Greg Gibson must also include a signed copy of the enclosed affidavit, attesting that Greg Gibson will immediately cease from engaging in any unlicensed or unauthorized mortgage 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 7TH day of October, 2010

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