By the Division of Banks


COMMONWEALTH OF MASSACHUSETTS

Suffolk, SS.

COMMISSIONER OF BANKS
MORTGAGE LENDER AND
MORTGAGE BROKER
LICENSING
Docket No. 2011-089

CONSENT ORDER

In the Matter of
ALLIED HOME MORTGAGE CAPITAL CORPORATION
Houston, Texas

Mortgage Company License No(s). MC4169 et al.


WHEREAS, ALLIED HOME MORTGAGE CAPITAL CORPORATION, located at 6110 Pinemont Drive, Houston, Texas, ("Allied Home 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 Massachusetts General Laws chapter 30A, section 10, 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 January 11, 2012 whereby, solely for the purpose of settling this matter, Allied Home 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, Allied Home Mortgage is, and at all relevant times has been, a foreign corporation doing business in the Commonwealth. Allied Home Mortgage’s main office is located at 6110 Pinemont Drive, Houston, Texas;

WHEREAS, on November 8, 2011, the Commissioner, acting pursuant to Massachusetts General Laws chapter 255E, section 7(b), issued a Findings of Fact and Temporary Order to Cease and Desist, Docket No. 2011-089 ("Temporary Order") against Allied Home Mortgage as a result of Allied Home Mortgage’s alleged failure to demonstrate and maintain the character, reputation, integrity, and general fitness that would warrant the belief that its mortgage lender and mortgage broker business would be operated honestly, fairly, and soundly in the public interest;

WHEREAS, on November 15, 2011, Allied Home Mortgage filed a "Request for Hearing" with regard to the Commissioner’s Temporary Order in accordance with Massachusetts General Laws chapter 255E, section 7(b);

WHEREAS, without this Consent Order constituting an admission by Allied Home Mortgage of any allegations made or implied by the provisions of the Temporary Order; solely for the purpose of settlement of all alleged violations without protracted administrative proceedings and judicial review, Allied Home 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 Allied Home Mortgage having reached the following mutual agreement under this Consent Order to resolve the matters raised by the Temporary Order, the Commissioner has terminated the Temporary Order on this 11th day of January, 2011.

ORDER

NOW COME the parties in the above-captioned matter, the Division and Allied Home Mortgage, and stipulate and agree as follows:

  1. Allied Home Mortgage and any and all officers, directors, managers, employees, independent contractors, or agents, operating on behalf of Allied Home Mortgage, have CEASED engaging in the activity of a mortgage lender, mortgage broker, and mortgage loan originator in Massachusetts, as those terms are defined under General Laws chapter 255E, section 1 and General Laws chapter 255F, section 1, respectively.
  2. Immediately upon the execution of this Consent Order, Allied Home Mortgage will surrender its Massachusetts mortgage lender and mortgage broker licenses by submitting a "Request to Surrender" filing to the Division through the Nationwide Mortgage Licensing System (NMLS).
  3. Allied Home Mortgage shall retain all Massachusetts mortgage loan application files, and the disclosures, correspondence, papers, and records relating to the loan, for a minimum of three years after final payment is made on the mortgage loan or the mortgage loan is sold, whichever occurs first. Such records shall be made available to the Commissioner, in their entirety, immediately upon the request of the Commissioner.
    1. Allied Home Mortgage agrees to update the Corporation’s record in the NMLS, as necessary, to indicate the location of where such records shall be kept and agrees to notify the Division in writing, in advance, if Allied Home Mortgage intends to move such records to an alternate location during the record retention period.
  4. Allied Home Mortgage has TAKEN ACTION to provide the Division with a weekly-updated report of its Massachusetts mortgage loan portfolio since the issuance of the Temporary Order and agrees to continue to submit updated versions of such reports until such time as each of the Massachusetts residential mortgage loan applications have reached a final outcome of having been funded, transferred, placed, withdrawn, or denied.
  5. Allied Home Mortgage has TAKEN ACTION to secure copies of all pending application files.
  6. Allied Home Mortgage will refrain from submitting an application to obtain a mortgage lender and/or mortgage broker license from the Commissioner for a period of thirty six (36) months from the effective date of the Consent Order.
  7. To the extent that Allied Home Mortgage or any of its officers or directors, or their successors or assigns, wish to resume business as a mortgage lender and/or mortgage broker under General Laws chapter 255E at the expiration of the 36-month term as set forth above, Allied Home Mortgage and/or such individual, as applicable, shall be required to submit a completed application to obtain the relevant license(s) from the Commissioner. The provisions of this Section shall necessarily prohibit Allied Home Mortgage’s officers and directors from taking an ownership position in and from participating, in any manner, in the responsibilities or duties of a control person of an entity licensed under General Laws chapter 255E or any other entity which requires a license or approval from the Commissioner pursuant to applicable provisions of the Massachusetts General Laws. For the purposes of this Consent Order, "control" shall be defined as the power, directly or indirectly, to direct the management or policies of a company, whether through ownership of securities, by contract, or otherwise. Unless the Commissioner, in his sole discretion, agrees to accept such an application earlier, Allied Home Mortgage agrees not to submit such an application until the expiration of the 36-month term. The Commissioner shall have all of the discretion set forth within General Laws chapter 255E, section 4 and the Division’s regulation 209 CMR 42.00 et seq. in determining whether to issue a license to Allied Home Mortgage to conduct the licensed business, provided however, that any such application shall not be denied solely on the basis of the Temporary Order.
  8. The provisions of this Consent Order shall not limit, estop, or otherwise prevent any other state agency or department, from taking any other action affecting Allied Home Mortgage and/or any of its officers, directors, or managers.
  9. This Consent Order shall become effective immediately upon the date of its issuance.
  10. The provisions of this Consent Order shall be binding upon Allied Home Mortgage and its directors, officers, employees, agents, and their successors and assigns.
  11. In accordance with the terms of the Consent Agreement entered by Allied Home Mortgage and the Commissioner, Allied Home Mortgage has waived all rights of appeal that it may have relative to the Temporary Order.
  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 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 other than those set forth in this Consent Order, which replaces and supersedes all prior agreements between Allied Home Mortgage and the Commissioner.

BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS.

Dated at Boston, Massachusetts, this 11th day of January, 2012

By:
David J. Cotney
Commissioner of Banks