By the Division of Banks

COMMONWEALTH OF MASSACHUSETTS

Suffolk, SS.

COMMISSIONER OF BANKS
MORTGAGE LENDER LICENSING
LOAN SERVICER REGISTRATION
Docket No. 2011-004

CONSENT ORDER

In the Matter of
NATIONWIDE ADVANTAGE MORTGAGE COMPANY

Mortgage Lender License No. ML1425
Loan Servicer Registration No. LS1425


WHEREAS, NATIONWIDE ADVANTAGE MORTGAGE COMPANY ("Nationwide Advantage" or the "Company"), 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 June 10, 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, Nationwide Advantage agrees to the issuance of this CONSENT ORDER ("Consent Order") by the Commissioner of Banks ("Commissioner");


WHEREAS, an examination/inspection of Nationwide Advantage was conducted pursuant to General Laws chapter 255E, section 8, as of April 5, 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 lender in the Commonwealth; and


WHEREAS, the Report of Examination/Inspection (the "Report") issued pursuant to the Division's examination/inspection of Nationwide Advantage as of April 5, 2010 alleged substantial non-compliance with applicable statutes, rules, and regulations governing the conduct of those engaged in the business of a mortgage lender in Massachusetts.

ORDER


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

  1. Nationwide Advantage 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 Nationwide Advantage's behalf who is not duly licensed as a mortgage loan originator under M.G.L. chapter 255F and properly sponsored by Nationwide Advantage through the Nationwide Mortgage Licensing System ("NMLS").


    1. Nationwide Advantage shall revise, maintain, and monitor its 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 Nationwide Advantage.

    2. Nationwide Advantage agrees to submit a payment in the amount of eighteen thousand dollars ($18,000.00) in satisfaction of an administrative penalty collected in consideration of the Company's conducting business with mortgage loan originators who did not hold an active mortgage loan originator license in Massachusetts. Nationwide Advantage 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 Lender Examination Unit, 1000 Washington Street, 10th Floor, Boston, Massachusetts 02118.

  2. Nationwide Advantage shall establish, implement, and maintain procedures to ensure that all loan fees, points, or similar fees collected by the Company in a mortgage transaction involving residential property located in the Commonwealth are not charged to consumers except to the extent that such loan fees or points have been properly disclosed to the consumers by the Company, in writing, prior to the closing of the mortgage loan in accordance with Massachusetts General Laws chapter 183, section 63 and RESPA 2010.


    1. With the written response to the Report, the Company shall submit evidence of the reimbursement made in March 2010 of a pre-RESPA 2010 loan. This reimbursement was made prior to the commencement of the examination by the Division. Evidence of the reimbursement shall include the consumer's name, the date the loan closed, the check number, the amount of the reimbursement, and a copy of the cancelled reimbursement check to illustrate the consumer's receipt of the reimbursement.

  3. Nationwide Advantage shall establish, implement, and maintain procedures to ensure that the Company does not impose, late charges that are in excess of the amount permitted under the loan contract or by Massachusetts General Laws chapter 183, section 59. Nationwide Advantage shall review and revise, as necessary, continue to ensure that all documentation containing provisions referencing late payment charges to ensure that such provisions are in compliance with Massachusetts General Laws chapter 183, section 59.


    1. With the written response to the Report, the Company shall submit evidence of the reimbursement issued pursuant to this Section in June 2010 in the amount of $47.90. Evidence of the reimbursement shall include the consumer's name, the date the loan closed, the check number, the amount of the reimbursement, and a copy of the cancelled reimbursement check to illustrate the consumer's receipt of the reimbursement.

  4. Nationwide Advantage shall establish, implement, and maintain procedures to ensure compliance with the loan reporting requirements set forth in Home Mortgage Disclosure Act ("HMDA"), 12 U.S.C. section 2891 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 Company implement internal controls to ensure that, for all HMDA reportable loan applications, Nationwide Advantage accurately compiles and records all required data in the Company's HMDA Loan Application Register ("LAR").


    1. Nationwide Advantage shall establish, implement, and maintain operating policies and training procedures to ensure that all applicable personnel responsible for compiling and submitting the LAR, 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 Nationwide Advantage pursuant to this Section of the Consent Order.

  5. Nationwide Advantage shall comply with all laws and regulations applicable to its conducting the business of a mortgage lender, 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, in accordance with the corrective action described in the Report.


    1. Within thirty (30) days of Nationwide Advantage's receipt of the Report, the Company shall submit to the Commissioner a final 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 Nationwide Advantage 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, Nationwide Advantage shall a review process to assess the Company's compliance with percent all Massachusetts applications. This review will include the (a) statutes, rules, regulations, regulatory bulletins, and other relevant provisions of law applicable to those engaged in the business of a mortgage lender 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. Nationwide Advantage 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.

  6. No later than the thirtieth (30th) day after the end of each calendar quarter following the date of this Consent Order, Nationwide Advantage 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 Nationwide Advantage 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 Nationwide Advantage's compliance condition in Massachusetts and the results thereof.

  7. The reporting requirement to the Division referenced in Section 6 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

  8. Nationwide Advantage agrees that, in the event that the Company fails to submit the payment set forth in this Consent Order in the amount specified herein and in accordance with the applicable deadlines, the Division shall be authorized to submit a claim for such amount against the mortgage lender Massachusetts surety bond maintained by Nationwide Advantage pursuant to the Division's regulation 209 CMR 42.03(2)(a).

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

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

  11. 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.

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

  13. 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.

  14. 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 Nationwide Advantage.



BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS.

Dated at Boston, Massachusetts, this 10th day of June, 2011

David J. Cotney
Commissioner of Banks
Commonwealth of Massachusetts