By the Division of Banks
COMMONWEALTH OF MASSACHUSETTS
COMMISSIONER OF BANKS
Docket No. 2012-020
In the Matter of
JEFFREY JOHN MAGDIS
Loan Originator License No. MLO37976
WHEREAS, Jeffrey John Magdis, a formerly licensed mortgage loan originator under Massachusetts General Laws chapter 255F, section 2 and 209 CMR 41.00 et seq., has been advised of his right to Notice and Hearing pursuant to Massachusetts General Laws chapter 30A, section 10 and chapter 255F, section 11, 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 September 13, 2012, whereby, solely for the purpose of settling this matter, Jeffrey John Magdis agrees to the issuance of this CONSENT ORDER ("Consent Order") by the Commissioner of Banks ("Commissioner");
WHEREAS, the Division, through the Commissioner, has jurisdiction over the licensing and regulation of persons and entities engaged in the business of a mortgage loan originator in Massachusetts pursuant to Massachusetts General Laws chapter 255F, section 2;
WHEREAS, Jeffery John Magdis' Massachusetts mortgage loan originator license was in an inactive status between December 11, 2008 and December 31, 2008 because he was not properly sponsored by an employing entity through the National Multi-State Licensing System & Registry ("NMLS");
WHEREAS, an email notification was delivered to Jeffery John Magdis that his Massachusetts mortgage loan originator license status had changed to "inactive" on December 11, 2008, when his license status was updated on the NMLS;
WHEREAS, on June 21, 2010, pursuant to the authority granted under Massachusetts General Laws chapter 255E, section 8, the Division commenced an examination/inspection ("examination/inspection") of the books, accounts, papers, records, and files maintained by The Mortgage Specialists, Inc. located at 2 Main Street in Plaistow, New Hampshire, mortgage broker license no. MB0414;
WHEREAS, the Division's review of books and records during the examination/inspection revealed that Jeffrey John Magdis originated seven (7) Massachusetts residential mortgage loan applications on behalf of The Mortgage Specialists, Inc. during the period when his license was in an inactive status, prior to his obtaining proper sponsorship from The Mortgage Specialists;
WHEREAS, WHEREAS, Jeffrey John Magdis' employing entity of record in the NMLS as of December 16, 2009 was The Mortgage Specialists, Inc.;
WHEREAS, pursuant to General Laws chapter 255F, section 4(b), a mortgage loan originator may be employed by no more than one entity;
WHEREAS, on January 23, 2012, pursuant to the authority granted under Massachusetts General Laws chapter 255E, section 8, the Division commenced an examination/inspection ("examination/inspection") of the books, accounts, papers, records, and files maintained by MBA Mortgage Corporation, Braintree, Massachusetts, license no. MB2880;
WHEREAS, the Division's review of books and records during the examination/inspection revealed that Jeffrey John Magdis originated one (1) Massachusetts residential mortgage loan application on behalf of MBA Mortgage Corporation on December 16, 2009, at a time during which, according to his NMLS record, he was sponsored by The Mortgage Specialists, Inc.;
WHEREAS, the parties now seek to resolve by mutual agreement, the aforementioned matters.
NOW COME the parties in the above-captioned matter, the Division and Jeffrey John Magdis, and stipulate and agree as follows:
1. On or before the thirtieth day after the effective date of this Consent Order, Jeffrey John Magdis shall submit a payment of eight thousand dollars ($8,000.00) in satisfaction of an administrative penalty collected in consideration of Jeffrey John Magdis originating seven residential mortgage loans when he was not permitted to originate mortgage loans in Massachusetts and originating one residential mortgage loan on behalf of an entity that was not Jeffrey John Magdis's sponsoring employer of record. Jeffrey John Magdis 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.
2. This Consent Order shall become effective immediately upon the date of its issuance.
3. 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.
4. This Consent Order and the Consent Agreement are the complete documents that represent the resolution of this matter. There are no other agreements, promises, representations, or warranties other than those set forth in this Consent Order and the Consent Agreement.
BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS:
Dated at Boston, Massachusetts, this day of September 13, 2012.
David J. Cotney
Commissioner of Banks
Commonwealth of Massachusetts