COMMONWEALTH OF MASSACHUSETTS

Suffolk, SS.

COMMISSIONER OF BANKS
MORTGAGE BROKER AND
MORTGAGE LOAN 
ORIGINATOR LICENSING


CEASE DIRECTIVE

In the Matter of 
JAMES TRACY, Individually
Swampscott, Massachusetts


The Commissioner of Banks (Commissioner) is charged with the administration of Massachusetts General Laws chapter 255E, and applicable regulations found at 209 CMR 42.00 et seq., relating to the licensing of mortgage brokers; and Massachusetts General Laws chapter 255F and applicable regulations found at 209 CMR 41.00 et seq., relating to the licensing of mortgage loan originators. Pursuant to the authority granted by Massachusetts General Laws chapter 255E and Massachusetts General Laws Chapter 255F, the Commissioner has investigated the activities of James Tracy a.k.a. Jim Tracy (James Tracy), with a business address of 324 Essex Street, Swampscott, MA 01907, to determine if James Tracy, either acting individually and/or on behalf of American Trust Mortgage, Inc. (American Trust), has engaged in the business of, and/or is continuing to engage in, acts or practices constituting violations of Massachusetts General Laws chapter 255E, and Massachusetts General Laws chapter 255F. Based upon such investigation, the Division hereby issues the following CEASE DIRECTIVE (Directive) as a result of the findings alleged herein.

A. FINDINGS OF FACT

  1. 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 broker and mortgage lender in Massachusetts pursuant to Massachusetts General Laws chapter 255E, section 2 and mortgage loan originator activity in Massachusetts pursuant to Massachusetts General Laws chapter 255F, section 2.
  2. According to the Division's records and the Nationwide Multi-State Licensing System & Registry (NMLS), James Tracy has never applied for or obtained a Massachusetts mortgage loan originator license.
  3. On or about April 3, 2012 an examination of American Trust was conducted pursuant to General Laws chapter 255E, section 8 to assess the Corporation's level of compliance with applicable Massachusetts and federal statutes and regulations governing the conduct of those engaged in the business of a mortgage broker in the Commonwealth.
  4. Massachusetts General Laws chapter 255F, section 2(a), states, in part No individual shall act as a mortgage loan originator with respect to any dwelling unless such person has first obtained a mortgage loan originator license from the commissioner or is exempt from the licensure requirement[.]
  5. Massachusetts General Laws chapter 255F, section 15(f) states, in part: It shall be a violation of this chapter for any person to: (f) conduct any business covered by this chapter without holding a valid license as require under this chapter[.]
  6. Massachusetts General Laws chapter 255F, section 1, identifies a mortgage loan originator as: A person who for compensation or gain or in the expectation of compensation or gain: (i) takes a residential mortgage loan application; or (ii) offers or negotiates terms of a residential mortgage loan.
  7. During the examination of American Trust, the Division's examiners discovered a residential mortgage loan application dated October 15, 2009 that had been submitted to the lender on file identifying "Jim Tracy" as the interviewer and containing a corresponding wet signature on the signature line. The final residential loan application dated January 27, 2010, which was retained by the lender of record, was signed by the borrowers at closing and listed "Jim Tracy" as the interviewer. In addition, "Jim Tracy" is identified as the mortgage loan originator on the mortgage as recorded in the Registry of Deeds.

    B. CEASE DIRECTIVE
  8. James Tracy shall immediately cease engaging in the activities of a mortgage loan originator, as those activities are defined under Massachusetts General Laws chapter 255F, section 1, relative to any residential property in Massachusetts. Therefore, James Tracy is ordered to immediately cease taking residential mortgage applications; and/or offering or negotiating terms of a residential mortgage loan from consumers for residential property located in Massachusetts.
  9. James Tracy shall submit to the Commissioner a detailed record, prepared as of the date of submission, of all pending residential mortgage loan applications he has taken and negotiated on property located in Massachusetts. The records to be produced shall be submitted to the Commissioner within five (5) dates of the effective date of this Cease Directive and shall include all information on file, regarding James Tracy's open application list, including but not necessarily limited to, the following:
    1. All information on file as of the date of submission regarding James Tracy open application list as a mortgage loan originator including but not limited to, the following:
      1. The names of all individuals from whom James Tracy has accepted an application for a residential mortgage loan; the applicants' addresses and telephone numbers; the amount of all prepaid loan fees submitted by the customer; the amount of each loan; application status (i.e. filed, submitted to lenders, cleared to close, etc.); scheduled closing dates; rate lock status; and a list identifying the applicable broker or lender with whom the applicants' application was placed. The latter list should include telephone numbers of contact persons familiar with James Tracy's submitted loans.

  10. James Tracy must submit a response within five (5) days of receipt of this Cease Directive. The response submitted by James Tracy must also include a signed copy of the enclosed affidavit, attesting that James Tracy will immediately cease from engaging in any unlicensed or unauthorized mortgage loan originator activity including any use of solicitations or advertising in Massachusetts.


BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS:

Dated at Boston, Massachusetts, this day of  December 18, 2012.

By:
David J. Cotney
Commissioner of Banks
Commonwealth of Massachusetts