By the Division of Banks
COMMONWEALTH OF MASSACHUSETTS
COMMISSIONER OF BANKS
Docket No. 2011-033
In the Matter of
LEADER MORTGAGE COMPANY, INC.
Mortgage Lender License No. ML2619
WHEREAS, LEADER MORTGAGE COMPANY, INC., Arlington, Massachusetts ("Leader Mortgage" or the "Corporation"), 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 March 16, 2012, 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, Leader Mortgage agrees to the issuance of this CONSENT ORDER ("Consent Order") by the Commissioner of Banks ("Commissioner");
WHEREAS, pursuant to General Laws chapter 255E, section 8, an examination of Leader Mortgage was conducted as of August 3, 2010 to assess the Corporation’s lending performance under Mortgage Lender Community Investment standards described in the Division’s regulation 209 CMR 54.00 et seq. and level of compliance with applicable Massachusetts statutes and the Division’s regulations governing the licensing of mortgage loan originators; and
WHEREAS, the Report of Examination (the "Report") issued pursuant to the Division’s examination of Leader Mortgage as of August 3, 2010 alleged a significant number of violations with regard to the proper licensing of loan originators.
NOW COME the parties in the above-captioned matter, the Division and Leader Mortgage, and stipulate and agree as follows:
- Leader Mortgage will establish and institute the necessary controls to 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 Leader Mortgage’s behalf who is not duly licensed as a mortgage loan originator under Massachusetts General Laws chapter 255F and properly sponsored by Leader Mortgage through the Nationwide Mortgage Licensing System ("NMLS").
- Leader Mortgage shall establish, implement and maintain procedures to ensure that all mortgage loan originators with whom the Corporation conducts business are properly licensed as mortgage loan originators under Massachusetts General Laws chapter 255F, and properly sponsored through NMLS by Leader Mortgage.
- Leader Mortgage agrees to submit a payment in the amount of one hundred forty-two thousand dollars ($142,000.00) in satisfaction of an administrative penalty collected in consideration of the Corporation’s conducting business with mortgage loan originators who either did not hold an active mortgage loan originator license or were not sponsored by the Corporation. Leader 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, 1000 Washington Street, 10th Floor, Boston, Massachusetts 02118.
- Leader Mortgage 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.
- Within thirty (30) days of Leader 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 Leader Mortgage to implement all corrective actions set forth in: (i) the "Significant Violations" section of the Report and (ii) the provisions of this Consent Order;
- Within thirty (30) days from the effective date of this Consent Order, Leader Mortgage shall establish, implement, and maintain quality control standards which provide for a process to assess the Corporation’s compliance with: (i) the 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 (ii) 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
- Leader 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.
- On the thirtieth (30th) day after the end of each calendar quarter following the date of this Consent Order, Leader Mortgage shall furnish written progress reports to the Division, which shall address and include the following:
- A description of the form, content, and manner of any actions taken to address each Section of this Consent Order, as well as violations and other areas of concern reflected in the Report, and the results thereof; and
- Written findings prepared by Leader 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 Leader Mortgage’s compliance condition in Massachusetts and the results thereof.
- The reporting requirement to the Division referenced in Section 3 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.
- Nothing in this Consent Order shall be construed as permitting Leader Mortgage to violate any law, rule, regulation, or regulatory bulletin to which Leader 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 Leader 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, or other formal regulatory action 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 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 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, promises, representations, or warranties between the Division and Leader Mortgage.
BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS.
Dated at Boston, Massachusetts, this 16th day of March, 2012
David J. Cotney
Commissioner of Banks
Commonwealth of Massachusetts