By the Division of Banks


Suffolk, SS.

Docket No. 2010-372-CO


In the Matter of
Quincy, Massachusetts

Mortgage Broker License No. MB5335

WHEREAS COASTAL FINANCE, LLC, ("Coastal Finance" or the "Company"), with its main business office located at 400 Crown Colony Drive, Suite 103, Quincy, Massachusetts, 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 February 7, 2011, whereby, solely for the purpose of settling this matter, Coastal Finance 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 broker in Massachusetts pursuant to Massachusetts General Laws chapter 255E, section 2;
WHEREAS, Coastal Finance is, and at all relevant times has been, a limited liability company conducting business in the Commonwealth of Massachusetts. Coastal Finance's main office is located at 400 Crown Colony Drive, Suite 103, Quincy, Massachusetts;

WHEREAS, pursuant to General Laws chapter 255E, section (7)(b) and General Laws chapter 255E, section 11, the Commissioner issued a Temporary Order to Cease and Desist and Notice of Administrative Penalty ("Order"), Docket No. 2010-372 against Coastal Finance on October 29, 2010, based upon information reflected in a solicitation ("Solicitation") sent by Coastal Finance to Massachusetts consumers;

WHEREAS, on or about November 2, 2010, Coastal Finance filed a response to the Order with the Division whereby the Corporation answered the Division's findings and alleged violations of law contained in the Order. By its response, Coastal Finance further reserved its right to proceed to an administrative hearing in accordance with Massachusetts General Laws chapter 30A;

WHEREAS, without this Consent Order constituting an admission by Coastal Finance of any allegations made or implied by the provisions of the Order; solely for the purpose of settlement of all alleged violations without protracted administrative proceedings and judicial review, Coastal Finance 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;

WHEREAS, in recognition of the Division and Coastal Finance having reached the following mutual agreement under this Consent Order to fully resolve the matters raised by the Order, the Commissioner has terminated the Order on this 7th day of February, 2011; and

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


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

  1. Coastal Finance shall revise its practices and procedures to ensure that all solicitations and advertising materials used by the Company do not contain any representations or statements that could be considered false, misleading, or have the tendency or capacity to be misleading.

    1. Coastal Finance shall take all necessary steps to ensure that the Solicitation or any similar solicitations or advertisements are not published or distributed to consumers in Massachusetts;
    2. Coastal Finance shall establish, implement, and maintain a system of internal controls to monitor the Company's compliance with the laws and regulations applicable to soliciting and advertising practices including, but not limited to Massachusetts General Laws chapter 140D, the Division's regulations 209 CMR 32.00 et seq. and 209 CMR 42.12A, and the Office of the Attorney General's regulation 940 CMR 8.04;
    3. Coastal Finance shall establish, implement, and maintain policies and procedures to ensure that all solicitations and advertisements are thoroughly reviewed by senior management prior to publication or distribution to consumers. Such procedures shall include a review of the criteria utilized to generate any advertisement or mailing list to ensure that targeted advertisements or solicitations are appropriate for the consumers to whom they are distributed;
    4. Coastal Finance shall review and revise, as necessary, the Company's policies and procedures to ensure that individuals performing on behalf of the Company neither act nor represent themselves as a government entity; and
    5. A copy of each solicitation and/or advertisement used by Coastal Finance shall be retained in the Company's books and records, and such records shall be made available to the Division during its examinations/inspections of the Company.
  2. Coastal Finance agrees to submit a payment of ten thousand dollars ($10,000.00) in satisfaction of an administrative penalty collected in consideration of Coastal Finance's distribution of the solicitation referenced in the preamble of this Consent Order. Coastal Finance shall remit payment in full of the amount indicated above, payable to the "Commonwealth of Massachusetts," with the executed copy of this Consent Order, to the Office of the Commissioner of Banks, 1000 Washington Street, 10th Floor, Boston, Massachusetts 02118-6400. The Division shall remit the payment for deposit into the General Fund of the Commonwealth.

  3. Nothing in this Consent Order shall be construed as permitting Coastal Finance to violate any law, rule, regulation, or regulatory bulletin to which Coastal Finance is subject.

    In consideration of the foregoing Consent Order, the Division agrees not to pursue formal measures, relative to this matter, to suspend or revoke Coastal Finance's mortgage broker license under General Laws chapter 255E, section 6, while this Consent Order is in effect.

  4. Coastal Finance agrees that, in the event the Company fails to submit the payment set forth in this Consent Order in the amount specified herein and in accordance with the applicable deadline, the Division shall be authorized to submit a claim for such amount against the mortgage broker Massachusetts surety bond maintained by Coastal Finance pursuant to the Division's regulation 209 CMR 42.06(2)(a).
  5. Failure to comply with the terms of this Consent Order shall constitute grounds for license suspension and/or revocation pursuant to applicable provisions of the General Laws of the Commonwealth of Massachusetts.

  6. This Consent Order shall become effective immediately upon the date of its issuance.

  7. The provisions of this Consent Order shall be binding upon Coastal Finance and its officers and directors, and their successors or assigns.

  8. 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.

  9. This Consent Order and the Consent Agreement are the complete documents representing the resolution of this matter. There are no other agreements between the Division and Coastal Finance.

Dated at Boston, Massachusetts, this 7th day of February, 2011


By: David J. Cotney
Acting Commissioner of Banks