COMMONWEALTH OF MASSACHUSETTS
COMMISSIONER OF BANKS
MORTGAGE LENDER AND
In the Matter of
American Interbanc Mortgage, LLC
Mortgage Lender License No. ML2043
WHEREAS, AMERICAN INTERBANC MORTGAGE, LLC, Irvine, California ("American Interbanc" or the "Corporation"), a licensed mortgage lender under Massachusetts General Laws chapter 255E, section 2, has been advised of its right to Notice and Hearing pursuant to General Laws chapter 255E, section 7(a), 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 August 1, 2011, whereby, solely for the purpose of settling this matter, and without admitting any allegations or implications of fact or the existence of any violation of state or federal laws and regulations governing the conduct and operation of a mortgage lender, American Interbanc agrees to the issuance of this CONSENT ORDER ("Order") by the Commissioner of Banks ("Commissioner");
WHEREAS, a Mortgage Lender Community Investment examination of American Interbanc was conducted pursuant to General Laws chapter 255E, section 8, as of November 26, 2010, to assess the Corporation's level of compliance with applicable Massachusetts statutes and the Division's regulations governing the conduct of those engaged in the business of a mortgage lender in the Commonwealth; and
WHEREAS, the Report of Examination (the "Report") issued pursuant to the Division's examination of American Interbanc as of November 26, 2010 alleged substantial non-compliance with applicable state and federal statutes, rules, and regulations governing the conduct of those engaged in the business of a mortgage lender and mortgage broker in Massachusetts.
NOW COME the parties in the above-captioned matter, the Division and American Interbanc, and stipulate and agree as follows:
- American Interbanc shall establish, implement, and maintain procedures to ensure compliance with the loan reporting requirements set forth in the Home Mortgage Disclosure Act ("HMDA"), 12 U.S.C. section 2801 et seq., as implemented by Regulations of the Board of Governors of the Federal Reserve System, 12 C.F.R. Part 203 ("Regulation C"). Such procedures shall necessarily require that the Corporation implement internal controls to ensure that, for all HMDA reportable loan applications, American Interbanc accurately compiles and records all required data in the Corporation's HMDA Loan Application Register ("LAR").
- Within sixty (60) days of the effective date of this Order, American Interbanc shall review for accuracy the HMDA data collected for all residential mortgage loans originated during calendar year 2009, and shall re-file with the Federal Reserve Board corrected information of all erroneous and/or incomplete data previously submitted on the LAR.
- American Interbanc shall establish, implement, and maintain operating policies and training procedures to ensure that all applicable personnel possess a comprehensive understanding of the HMDA reporting requirements under Regulation C. Such training shall necessarily ensure the proper implementation and execution of the revised practices and procedures adopted by American Interbanc pursuant to this Section of the Order.
- Within ninety (90) days of the effective date of this Order, American Interbanc shall prepare and submit to the Division a written report detailing the HMDA data that was re-filed by the Corporation pursuant to Section 1(a) of this Order.
- American Interbanc agrees to submit a payment in the amount of twenty-five thousand dollars ($25,000.00) in satisfaction of an administrative penalty collected in consideration of the Corporation's failure to comply with the statutes, rules and regulations governing the conduct of those engaged in the business of a mortgage lender in Massachusetts. American Interbanc 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, 10 th Floor, Boston, Massachusetts 02118. The Division shall remit the payment for deposit into the General Fund of the Commonwealth.
- American Interbanc shall establish, implement and maintain procedures to ensure compliance with the provisions of the requirements set forth in the Equal Credit Opportunity Act ("ECOA"), 15 U.S.C. section 1601 et seq., as implemented by Regulations of the Board of Governors of the Federal Reserve System, 12 C.F.R. Part 202 ("Regulation B"). Such procedures shall necessarily require that the Corporation implement internal controls to ensure that American Interbanc collects and records the proper Government Monitoring information on all applications or properly records that the information was not provided.
- American Interbanc shall comply with all laws and regulations applicable to conducting the business of a mortgage lender and mortgage broker, including, but not limited to, Massachusetts General Laws chapters 255E and 255F, and the Division's regulations 209 CMR 41.00 et seq. and 209 CMR 42.00 et seq. Such obligations shall necessarily include the duty to address and correct, within thirty (30) days of receipt of the Report, all violations and areas of concern addressed in the Report.
- Within thirty (30) days of American Interbanc's receipt of the Report, the Corporation shall submit to the Commissioner a written response that addresses each of the violations and areas of concern specified in the Report. The written response shall describe the revised policies and procedures adopted by American Interbanc to implement all corrective actions set forth in: (i) the "Significant Violations" section of the Report; and (ii) the provisions of this Order;
- Within thirty (30) days of the effective date of this Order, American Interbanc shall establish, implement, and maintain quality control standards which provide for a loan review process to assess the Corporation's compliance with: (a) the statutes, rules, regulations, regulatory bulletins, and other relevant provisions of law applicable to those engaged in the business of a mortgage lender and mortgage broker in Massachusetts, and (b) the provisions of this Order. Such quality control standards shall be designed to prevent the recurrence of the violations addressed in the Report; and
- American Interbanc shall establish, implement, and maintain procedures and policies to ensure that all applicable staff persons receive adequate instruction and ongoing, periodic training to ensure proper implementation and execution of the revised practices and procedures implemented pursuant to this Order.
- On the thirtieth (30th) day after the end of each calendar quarter following the date of this Order, beginning with the calendar quarter ending September 30, 2011, American Interbanc shall furnish written progress reports to the Division, which shall address and include the following:
- A description of the form, content, and manner of any actions taken to address each Section of this Order and the results thereof; and
- Written findings prepared by American Interbanc detailing a review of management's and staff persons' adherence to the policies, programs, and procedures adopted pursuant to this Order and to applicable statutes, regulations, and rules, as well as a description of any operational changes implemented during such quarter which are intended to improve American Interbanc's compliance condition in Massachusetts and the results thereof.
- The reporting requirement to the Division referenced in Section 4 of this Order shall remain in effect and shall not be amended or rescinded without the prior written modification, termination, or suspension of the applicable provision of this Order from the Commissioner.
- Nothing in this Order shall be construed as permitting American Interbanc to violate any law, rule, regulation, or regulatory bulletin to which the Corporation is subject.
- In consideration of the foregoing Order, the Division agrees not to pursue formal measures, relative to this matter, to suspend or revoke American Interbanc's mortgage lender and mortgage broker licenses under Massachusetts General Laws chapter 255E, section 6, while this Order is in effect.
- Failure to comply with the terms of this Order shall constitute grounds for license suspension and/or revocation, or other formal regulatory action pursuant to applicable provisions of the General Laws of the Commonwealth of Massachusetts.
- This Order shall become effective immediately upon the date of its issuance.
- The provisions of this Order shall remain effective and enforceable except to the extent that, and until such time as the Commissioner or a court of competent jurisdiction modifies, terminates, suspends, or sets aside any provision of this Order.
- This Order and the Consent Agreement are the complete documents representing the resolution of this matter. There are no other agreements between the Division and American Interbanc Mortgage, LLC.
BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS.
Dated at Boston, Massachusetts, this 1st day of August, 2011
David J. Cotney
Commissioner of Banks
Commonwealth of Massachusetts
This consent order was terminated pursuant to a consent order dated JULY 29, 2015, Docket #2015-08