By the Division of Banks
COMMONWEALTH OF MASSACHUSETTS
COMMISSIONER OF BANKS
MORTGAGE LOAN ORIGINATOR
Docket No. 2013-007-CO
In the Matter of
STEPHANIE RAE SULLIVAN, Individually
Mortgage Loan Originator License No. MLO22932
WHEREAS, STEPHANIE RAE SULLIVAN a licensed mortgage loan originator under Massachusetts General Laws chapter 255F, section 2, has been advised of her 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 April 4th, 2013, whereby, solely for the purpose of settling this matter and without admitting any allegations or implications of fact or the existence of any violations of applicable state and federal statutes or rules, Stephanie Rae Sullivan agrees to the issuance of this CONSENT ORDER (Consent Order) by the Commissioner of Banks (Commissioner);
WHEREAS, the Division has jurisdiction over the licensing and regulation of persons engaged in the business of a mortgage loan originator in Massachusetts pursuant to Massachusetts General Laws chapter 255F, section 2 and its implementing regulations 209 CMR 41.00 et seq.;
WHEREAS, at all relevant times, Stephanie Rae Sullivan was licensed as a mortgage loan originator under Massachusetts General Laws chapter 255F, Section 2;
WHEREAS, Stephanie Rae Sullivan is, and at all relevant times has been, Executive Vice President and minority owner of American Trust Mortgage Inc. (American Trust), a licensed mortgage broker under General Laws chapter 255E, section 2;
WHEREAS, On or about December 3, 2012, the New Hampshire Banking Department (NH Banking Department) initiated an examination of American Trust to further investigate information shared by the Division which was discovered during the Division’s examination of American Trust which had commenced as of April 3, 2012 (the 2012 examination) pursuant to Massachusetts General Laws chapter 255E, section 8;
WHEREAS, during the course of the examination conducted by the NH Banking Department, the New Hampshire examiners conducted a review of documentation contained in "shred bins" and designated for destruction at American Trust’s Swampscott, Massachusetts location;
WHEREAS, during the review of the material contained in the "shred bins," New Hampshire examiners discovered documentation pertaining to 2012 residential mortgage loan transactions involving Massachusetts borrowers and secured by property located in Massachusetts that evidenced unfair or deceptive practices;
WHEREAS, the Division’s Report of Examination (the Report), which was issued to American Trust on or about December 18, 2012, presented the findings of the 2012 examination, as well as the findings relative to the examination conducted by the NH Banking Department, and alleged significant failures to comply with applicable state and federal laws, rules, regulations, and regulatory bulletins governing the conduct of those engaged in the business of a mortgage broker in Massachusetts;
WHEREAS, on December 18, 2012, based upon the findings as set forth in the Report, the Division issued a TEMPORARY ORDER TO CEASE AND DESIST & ORDER TO SHOW CAUSE AND NOTICE OF RIGHT TO A HEARING (the Order and Notice), Docket No. 2012-041, against American Trust and Stephanie Rae Sullivan, in her capacity as Executive Vice President and minority owner of American Trust and as a licensed mortgage loan originator;
WHEREAS, on or about January 8, 2013, Stephanie Rae Sullivan, through counsel, filed a Response to the Order and Notice whereby Stephanie Rae Sullivan contested certain of the Division’s findings as set forth in the Order and Notice. By the Response, Stephanie Rae Sullivan further reserved the right to proceed to an administrative hearing in accordance with Massachusetts General Laws chapter 30A;
WHEREAS, on January 24, 2013, counsel for Stephanie Rae Sullivan appeared at the Division’s office for an informal conference to discuss the matters raised by the Report and the Order and Notice;
WHEREAS, the parties now seek to resolve by mutual agreement, the matters identified in the Order and Notice;
WHEREAS, without this Consent Order constituting an admission by Stephanie Rae Sullivan of any allegations made or implied by the provisions of the Order and Notice; solely for the purpose of settlement of all alleged violations without protracted administrative proceedings and judicial review, Stephanie Rae Sullivan hereby waives all rights to complete the hearing process relative to this proceeding and affirms that she is willing to take all necessary action as set forth in this Consent Order;
WHEREAS, in recognition of the Division and Stephanie Rae Sullivan having reached the following mutual agreement under this Consent Order to resolve the matters raised by the Order and Notice, the Commissioner has terminated the Order and Notice as to Stephanie Rae Sullivan on this 4th day of April, 2013.
NOW COME the parties in the above-captioned matter, the Division and Stephanie Rae Sullivan, and stipulate and agree as follows:
- Stephanie Rae Sullivan will continue to refrain from taking residential mortgage loan applications, or offering or negotiating terms of a residential mortgage loans, or otherwise engaging in the mortgage loan originator business, as that term is defined under General Laws chapter 255F, section 1.
- Immediately upon the execution of this Consent Order, the Division will facilitate Stephanie Rae Sullivan’s withdrawal of her Massachusetts mortgage loan originator renewal application, which was submitted to the Division through the Nationwide Multi-State Licensing System & Registry (NMLS) on or about December 10, 2012.
- Immediately upon the execution of this Consent Order, The Division will update Stephanie Rae Sullivan’s Massachusetts mortgage loan originator license number MLO22932 in the Nationwide Mortgage Licensing System (NMLS) to "Terminated-Ordered to Surrender."
- Stephanie Rae Sullivan will refrain from submitting an application to obtain a mortgage loan originator license from the Commissioner for a period of twelve (12) months from the effective date of the Order.
- To the extent that Stephanie Rae Sullivan wishes to resume or engage in business as a licensed mortgage loan originator at the expiration of the 12-month term as set forth above, Stephanie Rae Sullivan shall be required to submit a completed application to obtain the relevant license from the Commissioner. The Commissioner shall have all of the discretion set forth within General Laws chapter 255F, section 4 and the Division’s regulation 209 CMR 41.00 et seq. in determining whether to issue a license to Stephanie Rae Sullivan to conduct the licensed business, provided however, that any such application shall not be denied on the basis of the Order and Notice.
- Stephanie Rae Sullivan is prohibited from taking an ownership position in any entity licensed by the Division and from participating, in any manner, in the responsibilities or duties of a control person of such an entity for a period of ten (10) years from December 18, 2012. 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.
- 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 Stephanie Rae Sullivan.
- This Consent Order shall become effective immediately upon the date of its issuance.
- In accordance with the terms of the Consent Agreement entered by Stephanie Rae Sullivan and the Commissioner, Stephanie Rae Sullivan has waived all rights of appeal that she may have relative to the Order and Notice and this Consent Order or any of its provisions.
- 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.
- 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 and the Consent Agreement.
BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS:
Dated at Boston, Massachusetts, this 4th day of April, 2013
David J. Cotney
Commissioner of Banks
Commonwealth of Massachusetts