By the Division of Banks

This Order was terminated on January 29, 2014.

COMMONWEALTH OF MASSACHUSETTS

Suffolk, SS.

COMMISSIONER OF BANKS
MORTGAGE BROKER
LICENSING
Docket No. 2011-006-

CONSENT ORDER

In the Matter of
MASSHOME MORTGAGE, LLC

Mortgage Broker License No. MB1572


WHEREAS, MASSHOME MORTGAGE, LLC ("MassHome Mortgage" or the "Company"), a licensed mortgage broker 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 February 28, 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 broker, MassHome Mortgage agrees to the issuance of this CONSENT ORDER ("Consent Order") by the Commissioner of Banks ("Commissioner");

WHEREAS, an examination/inspection of MassHome Mortgage was conducted pursuant to General Laws chapter 255E, section 8, as of August 31, 2010, to assess the Company'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 broker in the Commonwealth; and

WHEREAS, the Report of Examination/Inspection (the "Report") issued pursuant to the Division's examination/inspection of MassHome Mortgage as of August 31, 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 broker in Massachusetts.

 

ORDER


NOW COME the parties in the above-captioned matter, the Division and MassHome Mortgage, and stipulate and agree as follows:
  1. MassHome Mortgage will prevent any individual from engaging in the activities of a mortgage loan originator, as that term is defined under Massachusetts General Laws chapter 255F, section 1, on MassHome Mortgage's behalf who is not duly licensed as a mortgage loan originator under M.G.L. chapter 255F and properly sponsored by MassHome Mortgage through the Nationwide Mortgage Licensing System (NMLS).

    1. MassHome Mortgage shall establish, implement and maintain procedures to ensure that all mortgage loan originators with whom the Company conducts business are properly licensed as mortgage loan originators under Massachusetts General Laws chapter 255F, and properly sponsored through the Nationwide Mortgage Licensing System by MassHome Mortgage.

    2. MassHome Mortgage agrees to submit a payment in the amount of forty-two thousand dollars ($42,000.00) in satisfaction of an administrative penalty collected in consideration of the Company's conducting business with a mortgage loan originator who did not hold an active mortgage loan originator license. MassHome Mortgage 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, Attn: Mortgage Broker Examination Unit, 1000 Washington Street, 10th Floor, Boston, Massachusetts 02118.

    3. Wendy Chow, 100% owner and sole member of the Company, shall submit a payment of twenty-one thousand dollars ($21,000.00) in satisfaction of an administrative penalty collected in consideration of Wendy Chow originating residential mortgage loans on behalf of the Company when she was not actively licensed as a mortgage loan originator in Massachusetts. Wendy Chow 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, Attention: Mortgage Broker Examination Unit, 1000 Washington St., 10th Floor, Boston, MA, 02118.

  2. MassHome Mortgage shall establish, implement, and maintain procedures to ensure that all consumers receive a loan origination and compensation agreement in accordance with the provisions of the Division's regulation 209 CMR 42.16. For each consumer loan file, a completed copy of the loan origination and compensation agreement shall be retained in the Company's books and records, as provided in 209 CMR 42.09(1)(b).

  3. MassHome Mortgage shall establish, implement, and maintain procedures to ensure that the Company maintains and uses all loan documents in the Company's books and records in a manner sufficient to evidence compliance with the applicable state and federal statutes and regulations, in accordance with the record keeping requirements specified by the Division's regulations 209 CMR 42.09 and 209 CMR 48.03. Such procedures shall necessarily require that the Company properly documents the initial date of application and ensures that all disclosures are properly dated and maintained in a manner that will allow the Division to determine whether time-sensitive documents are being provided to consumers within the mandated timing requirements.

  4. MassHome Mortgage shall comply with all laws and regulations applicable to its conducting the business of a 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.


    1. Within thirty (30) days of MassHome Mortgage's receipt of the Report, the Company 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 MassHome Mortgage to implement all corrective actions set forth in: (i) the "Examiner's Comments and Conclusions" section of the Report and (ii) the provisions of this Consent Order;

    2. Within thirty (30) days from the effective date of this Consent Order, MassHome Mortgage shall establish, implement, and maintain quality control standards which provide for a loan review process to assess the Company'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 broker in Massachusetts and (b) the provisions of this Consent Order. Such quality control standards shall be designed to prevent the recurrence of the violations addressed in the Report; and

    3. MassHome Mortgage 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 Consent Order.

  5. On the thirtieth (30th) day after the end of each calendar quarter following the date of this Consent Order, MassHome Mortgage shall furnish written progress reports to the Division, which shall address and include the following:


    1. A description of the form, content, and manner of any actions taken to address each Section of this Consent Order and the results thereof; and

    2. Written findings prepared by MassHome Mortgage detailing a review of management's and staff persons' adherence to the policies, programs, and procedures adopted pursuant to this Consent 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 MassHome Mortgage's compliance condition in Massachusetts and the results thereof.

  6. The reporting requirement to the Division referenced in Section 5 of this Consent 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 Consent Order from the Commissioner.

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

  8. MassHome Mortgage agrees that, in the event that the Company fails to submit the payments set forth in this Consent Order in the amounts specified herein and in accordance with the applicable deadlines, the Division shall be authorized to submit a claim for such amounts against the mortgage broker Massachusetts surety bond maintained by MassHome Mortgage pursuant to the Division's regulations 209 CMR 42.06(2)(a).

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

  10. Failure to comply with the terms of this Consent 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.

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

  12. 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 Consent Order of a court of competent jurisdiction.

  13. 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 between the Division and MassHome Mortgage.

BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS:


Dated at Boston, Massachusetts, this 28th day of February, 2011






By: David J. Cotney
Commissioner of Banks