By the Division of Banks
COMMONWEALTH OF MASSACHUSETTS
IN A MATTER BEFORE THE COMMISSIONER OF BANKS
FINAL ORDER AND DECISION
Docket No. 2012-016
DIVISION OF BANKS
INTERNATIONAL BUSINESS FINANCIAL, LLC
Mortgage Lender License No. ML136515
TSUI CHENG, Individually
Mortgage Loan Originator License No. MLO9332
The Division of Banks (Petitioner) has moved that Respondents International Business Financial, LLC and Tsui Cheng (Respondents) be defaulted for failure to respond to a Temporary Order to Cease and Desist and Order to Show Cause Docket Number: 2012-016 (Order). The motion is granted.
- On October 18, 2012, the Division issued an Order against the Respondents based upon:
- International Business Financial’s (IBF) failure to demonstrate the character, reputation, integrity, and general fitness that would warrant the belief that the business would be operated honestly, fairly, and soundly in the public interest in violation of Massachusetts General Laws chapter 255E, section 4 and the Division’s regulation 209 CMR 42.03(2);
- Tsui Cheng’s failure as sole owner and managing member of IBF, to demonstrate and maintain the financial responsibility, character, reputation, integrity, and general fitness such as to command the confidence of the community and to warrant a determination that she would operate honestly, fairly, soundly and efficiently in the public interest, as a mortgage loan originator in violation of Massachusetts General Laws chapter 255F, section 4 and the Division's regulation 209 CMR 41.04(2)(d);
- IBF’s failure to keep and use the Company’s books and records in a manner that allowed the Commissioner to determine compliance pursuant to the requirements of Massachusetts General Laws chapter 255E, section 8 and the Division’s regulations 209 CMR 48.03 and 209 CMR 42.09(1).; and
- Tsui Cheng’s failure, as owner and sole managing member of IBF, to keep and use the Company’s books and records in a manner that allowed the Commissioner to determine compliance pursuant to the requirements of Massachusetts General Laws chapter 255E, section 8 and the Division’s regulations 209 CMR 48.03 and 209 CMR 41.10(1);
- The Order was sent via certified mail and facsimile to IBF and Tsui Cheng’s address of record.
- Massachusetts Standard Adjudicatory Rules of Practices and Procedures, 801 CMR 1.01(4)(c) states in part, "Notice of actions…from the adjudicating Agency…shall be presumed to be received upon the day of hand-delivery or, if mailed, three days after deposit in the U.S. mail…"
- The Order required the Respondents to file an answer or otherwise respond to the charges contained in the Order within twenty-one (21) days of the effective date of the Order, pursuant to the Standard Adjudicatory Rules of Practice and Procedure, 801 CMR 1.01(6)(d) and stated that failure to file an Answer within 21 days could result in a default judgment against the Respondents.
- No answer to the Order is contained in the record.
- On December 4, 2012, the Petitioner filed a request to schedule an administrative hearing on the matter.
- On December 5, 2012, the administrative hearings department sent the parties a notice of hearing for January 3, 2013.
- The notice of hearing was sent to IBF and Tsui Cheng’s business and residential addresses of record and was returned by the post office as "not deliverable as addressed; unable to forward."
- The notice of hearing was also sent to all parties via facsimile and electronic mail.
- On January 3, 2013, the Respondents failed to appear at the administrative hearing, and the Division requested that a default judgment be issued as a result of the Respondents failure to appear.
- On January 8, 2013, the Petitioner filed a Motion for Default Judgment requesting a default judgment be entered as a result of the Respondents failure to respond to the Order and appear at the January 3, 2013 administrative hearing.
- In support of its Motion for Default Judgment, the Division maintained that "based upon the numerous attempts to contact IBF and Ms. Cheng, and the Respondents’ failure to appear at the January 3, 2013 Administrative Hearing," a default judgment was appropriate.
- In addition, the Petitioner also requested the following:
- A final decision in favor of the Division and against IBF and Tsui Cheng for each charge set forth in the Order;
- A final decision revoking IBF’s mortgage lender license, number ML136515 to conduct business as a mortgage lender in Massachusetts;
- A final decision revoking Tsui Cheng’s mortgage loan originator license, number MLO9332 to conduct business as a mortgage loan originator in Massachusetts;
- A final decision ordering IBF to cease and desist from transacting business in Massachusetts as a mortgage lender; and
- A final decision ordering IBF to immediately place any pending residential mortgage loan applications and related files, with qualified mortgage lender(s) with no costs to the applicant.
- To date, the Respondents have failed to contact the Administrative Hearings Department on the matter.
ORDER AND DECISION
- Based upon the Motions and all Documents previously filed, the Commissioner makes the following Decisions:
- Because of the Respondents’ failure to file an answer to the Order, failure to appear at the administrative hearing or respond to the Division’s Motion for Default Judgment, and failure to provide any way to contact them, it is ordered that IBF and Tsui Cheng be defaulted in accordance with M.G.L. c. 30A, §10(2). Based upon the default, all the allegations contained in the Order are deemed to be true.
- IBF’s mortgage lender license number ML136515 is hereby permanently revoked. Therefore, IBF is ordered to cease and desist from transacting business in Massachusetts as a mortgage lender.
- Tsui Cheng’s mortgage loan originator license number MLO9332 is hereby permanently revoked. Therefore, Tsui Cheng is ordered to cease and desist from engaging in the business in of a mortgage loan originator in Massachusetts.
- IBF is ordered to immediately place any pending residential mortgage loan applications and related files with an independent licensed mortgage lender or other qualified lender in Massachusetts, with no costs to the applicant.
- This Final Decision and Order may be appealed by filing a written petition for judicial review within thirty (30) days after entry of this Final Order and Decision, pursuant to Massachusetts General Laws chapter 30A, sections 14 and 15.
BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS:
Dated at Boston, Massachusetts, this 19th day of February, 2013
David J. Cotney
Commissioner of Banks
Commonwealth of Massachusetts