By the Division of Banks

COMMONWEALTH OF MASSACHUSETTS

Suffolk, SS.

COMMISSIONER OF BANKS
MORTGAGE LENDER AND
MORTGAGE BROKER
LICENSING
Docket No. 2009-124-CO

CONSENT ORDER


In the Matter of
UNION CAPITAL MORTGAGE BUSINESS TRUST
Randolph, Massachusetts

Mortgage Company License No. MC2202


WHEREAS, UNION CAPITAL MORTGAGE BUSINESS TRUST, Randolph, Massachusetts ("Union Capital" or the "Corporation"), a licensed mortgage lender and mortgage broker under Massachusetts General Laws chapter 255E, section 2, has been advised of its 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 June 3, 2010, whereby, solely for the purpose of settling this matter, Union Capital agrees to the issuance of this CONSENT ORDER ("Consent Order") by the Commissioner of Banks ("Commissioner");

WHEREAS, 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;

WHEREAS, Union Capital, at all relevant times, has been a Massachusetts Corporation doing business in the Commonwealth with its main office located at 1137 North Main Street, Randolph, Massachusetts;

WHEREAS, pursuant to Massachusetts General Laws chapter 255E, section 8, mortgage lenders who have made fifty or more home mortgage loans in the last calendar year subject to an evaluation of their community investment ("MLCI") practices including a review of the mortgage lender's compliance with fair lending laws, compliance with the requirements of the Equal Opportunity Act, the Home Mortgage Disclosure Act, and the Predatory Home Loan Practices Act;

WHEREAS, on April 15, 2009, pursuant to the authority granted under Massachusetts General Laws chapter 255E, section 8, the Division commenced an MLCI examination/inspection (the "2009 examination/inspection") of the books, accounts, papers, records, and files maintained by Union Capital;

WHEREAS, the Division's Report of Examination (the "Report"), which was issued to Union Capital on or about November 12, 2009, 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 lender and mortgage broker in Massachusetts;

WHEREAS, on or about November 12, 2009, based upon the findings of the 2009 examination/inspection, the Division issued a FINDINGS OF FACT AND TEMPORARY ORDER TO CEASE AND DESIST (the "Temporary Order"), Docket No. 2009-124, against Union Capital;

WHEREAS, on or about November 27, 2009 Union Capital filed a response to the Temporary Order and by its response, Union Capital further reserved its right to proceed to an administrative hearing in accordance with Massachusetts General Laws chapter 30A;

WHEREAS, on or about January 21, 2010, Union Capital appeared at the Division's offices for an informal conference to discuss the matters raised by the Temporary Order;

WHEREAS, the parties now seek to resolve by mutual agreement, the matters identified in the Temporary Order;

WHEREAS, without this Consent Order constituting an admission by Union Capital of any allegations made or implied by the provisions of the Temporary Order; solely for the purpose of settlement of all alleged violations without protracted administrative proceedings and judicial review, Union Capital 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 Union Capital having reached the following mutual agreement under this Consent Order to resolve the matters raised by the Temporary Order, the Commissioner has terminated the Temporary Order on this 3rd day of June, 2010.

ORDER

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

  1. Immediately upon the execution of this Consent Order, Union Capital and any and all officers, directors, managers, employees, independent contractors, or agents, operating on behalf of Union Capital, will cease engaging in the activity of a mortgage lender, mortgage broker, and mortgage loan originator in Massachusetts, as those terms are defined under General Laws chapter 255E, section 1 and General Laws chapter 255F, section 1, respectively.
  2. Immediately upon the execution of this Consent Order, Union Capital will surrender its Massachusetts mortgage lender and mortgage broker license MC2202 which expired on December 31, 2009 by: (a) returning the original license certificate to the Division at One South Station, 3 rd Floor, Boston, Massachusetts 02110; and (b) submitting a " Request to Surrender" filing to the Division through the Nationwide Mortgage Licensing System (NMLS).
  3. Union Capital 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 after final payment is made on the mortgage loan or the mortgage loan is sold, whichever occurs first. Such records shall be made available to the Commissioner, in their entirety, immediately upon the request of the Commissioner.
  4. Union Capital will refrain from submitting an application to obtain a mortgage lender and/or mortgage broker license from the Commissioner for a period of sixty (60) months from the effective date of the Temporary Order.
  5. To the extent that Union Capital or any of its officers or directors, or their successors or assigns, wish to resume business as a mortgage lender and/or mortgage broker under General Laws chapter 255E at the expiration of the 60-month term as set forth above, Union Capital and/or such individual, as applicable, shall be required to submit a completed application to obtain the relevant license(s) from the Commissioner. The provisions of this Section shall necessarily prohibit Union Capital's officers and directors from taking an ownership position in and from participating, in any manner, in the responsibilities or duties of a control person of a entity licensed under General Laws chapter 255E. For the purposes of this Consent Order, "control" shall be defined as the power, directly or indirectly, to direct the management or policies of a company, whether through ownership of securities, by contract, or otherwise. Unless the Commissioner, in his sole discretion, agrees to accept such an application earlier, Union Capital agrees not to submit such an application until the expiration of the 60-month term. 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 Union Capital to conduct the licensed business, provided however, that any such application shall not be denied solely on the basis of the Temporary Order.
  6. 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 Union Capital and/or any of its officers, directors, or managers.
  7. This Consent Order shall become effective immediately upon the date of its issuance.
  8. The provisions of this Consent Order shall be binding upon Union Capital and its directors, officers, employees, agents, and their successors and assigns.
  9. In accordance with the terms of the Consent Agreement entered by Union Capital and the Commissioner, Union Capital has waived all rights of appeal that it may have relative to the Temporary Order.
  10. 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.
  11. 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 Union Capital and the Commissioner.

BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS.

Dated at Boston, Massachusetts, this 3rd day of June, 2010

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