By the Division of Banks
COMMONWEALTH OF MASSACHUSETTS
COMMISSIONER OF BANKS
MORTGAGE LENDER AND
Docket No. 2011-027
In the Matter of
MLD Mortgage Inc. d/b/a The Money Store
Florham Park, New Jersey
Mortgage Company License No. MC1019
WHEREAS, MLD MORTGAGE INC. D/B/A THE MONEY STORE, Florham Park, New Jersey ("MLD Mortgage" 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 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 October 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 lender and mortgage broker, MLD Mortgage agrees to the issuance of this CONSENT ORDER ("Order") by the Commissioner of Banks ("Commissioner");
WHEREAS, a Mortgage Lender Community Investment examination of MLD Mortgage was conducted pursuant to General Laws chapter 255E, section 8, as of March 24, 2011, to assess MLD Mortgage’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 MLD Mortgage as of March 24, 2011 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 in Massachusetts.
NOW COME the parties in the above-captioned matter, the Division and MLD Mortgage, and stipulate and agree as follows:
- MLD Mortgage shall establish, implement and maintain policies and procedures to ensure that MLD Mortgage maintains all books, records, and accounts in accordance with the requirements of Massachusetts General Laws chapter 255E and the Division’s regulation 209 CMR 42.09 and 209 CMR 48.00 and 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"). The procedures implemented to address this Section of the Order shall necessarily ensure that MLD Mortgage retains its books and records in a manner which will allow the Commissioner to determine whether MLD Mortgage is complying with all applicable state and federal laws and regulations governing the conduct of mortgage lenders.
- MLD Mortgage agrees to submit a payment of two thousand dollars ($2,000.00) in satisfaction of administrative penalties collected in consideration of the Corporation’s failure to maintain books and records in accordance with the Division’s regulations 209 CMR 42.09 and 209 CMR 48.03. MLD Mortgage shall remit payment in full of the administrative penalty referenced in this Section of the Order, 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, Boston, Massachusetts 02118. The Division shall remit the payment for deposit into the General Fund of the Commonwealth.
- MLD Mortgage shall establish, implement and maintain procedures to ensure compliance with the provisions of the requirements set forth in Regulation B. Such procedures shall necessarily require that the Corporation implement internal controls to ensure that MLD Mortgage collects and records the proper Government Monitoring information on all applications or properly records that the information was not provided; proper notifications are provided; and records are retained as required.
- MLD Mortgage 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 MLD Mortgage’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 MLD Mortgage 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, MLD Mortgage 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
- MLD Mortgage shall establish, implement, and maintain procedures and policies to ensure that all applicable staff persons receive adequate instruction and ongoing, periodic training in order to ensure proper implementation and execution of the revised practices and procedures implemented pursuant to this Order.
- Nothing in this Order shall be construed as permitting MLD Mortgage 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 MLD Mortgage’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 MLD Mortgage.
BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS:
Dated at Boston, Massachusetts, this 28th day of October, 2011
David J. Cotney
Commissioner of Banks
Commonwealth of Massachusetts