By the Division of Banks
COMMONWEALTH OF MASSACHUSETTS
COMMISSIONER OF BANKS
Docket No. 2011-017-CO
In the Matter of
WESTSTAR MORTGAGE, INC.
Mortgage Lender License No. ML2925
WHEREAS WESTSTAR MORTGAGE, INC., ("Weststar Mortgage" or the "Corporation") with its main business office located at 3350 Commission Court, Woodbridge, Virginia, 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 May 24, 2011, whereby, solely for the purpose of settling this matter, Weststar Mortgage 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 lender and mortgage broker in Massachusetts pursuant to Massachusetts General Laws chapter 255E, section 2;
WHEREAS Weststar Mortgage is, and at all relevant times, has been a foreign corporation conducting business in the Commonwealth of Massachusetts. Weststar Mortgage’s main office is located at 3350 Commission Court, Woodbridge, Virginia;
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. 201-017 against Weststar Mortgage on April 22, 2011, based upon information reflected in a consumer solicitation (the "Solicitation") received by Massachusetts consumers;
WHEREAS, on or about May 2, 2011, Weststar Mortgage filed a response to the Order with the Division whereby the Corporation addressed the Division’s findings and alleged violations of law contained in the Order;
WHEREAS, the parties now seek to resolve by mutual agreement, the matters identified in the Order;
WHEREAS, without this Consent Order constituting an admission by Weststar Mortgage 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, Weststar Mortgage 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; and
WHEREAS, in recognition of the Division and Weststar Mortgage 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 24 day of May, 2011.
NOW COME the parties in the above-captioned matter, the Division and Weststar Mortgage, and stipulate and agree as follows:
- Weststar Mortgage shall revise its advertising practices and procedures to ensure that all solicitations and advertising materials used by the Corporation do not contain any representations or statements that could be considered false, misleading, or have the tendency or capacity to be misleading.
- Weststar Mortgage shall take all necessary steps to ensure that the Solicitation or any similar solicitation is not published or distributed to consumers in Massachusetts;
- Weststar Mortgage shall implement, establish and maintain a system of internal controls to monitor the Corporation’s compliance with the laws and regulations applicable to 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;
- Weststar Mortgage shall establish, implement and maintain policies and procedures to ensure that all 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 mailing lists to ensure that targeted solicitations are appropriate for the consumers to whom such solicitations are distributed;
- Weststar Mortgage shall review and revise, as necessary, the Corporation’s policies and procedures to ensure that individuals performing on behalf of the Corporation neither act, nor represent themselves, as a government entity; and
- A copy of each advertisement used by the Weststar Mortgage shall be retained in the Corporation’s books and records and shall be made available to the Division at its examinations/inspections of the Weststar Mortgage.
- Weststar Mortgage agrees to submit a payment of seven thousand five hundred dollars ($7,500.00) in satisfaction of an administrative penalty collected in consideration of Weststar Mortgage’s distribution of the solicitation referenced in the preamble of this Consent Order. Weststar Mortgage shall remit payment in full of the amount indicated above, payable to the "Massachusetts Office of Consumer Affairs Expendable Trust" 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.
- Nothing in this Consent Order shall be construed as permitting Weststar Mortgage to violate any law, rule, regulation, or regulatory bulletin to which Weststar Mortgage 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 Weststar Mortgage’s mortgage lender license under General Laws chapter 255E, section 6, while this Consent Order is in effect.
- 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.
- This Consent Order shall become effective immediately upon the date of its issuance.
- The provisions of this Consent Order shall be binding upon Weststar Mortgage and its officers and directors, and their successors or assigns.
- 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.
- 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 Weststar Mortgage.
BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS.
Dated at Boston, Massachusetts, this 24th day of May, 2011
David J. Cotney
Commissioner of Banks