By the Division of Banks
COMMONWEALTH OF MASSACHUSETTS
COMMISSIONER OF BANKS
Docket No. 2014-018
In the Matter of
CAPITAL INVESTMENT & LOAN, LLC
Mortgage Broker License No. MB24792
WHEREAS, CAPITAL INVESTMENT & LOAN, LLC, Hingham, Massachusetts, (Capital Investment or the Company), a licensed mortgage broker 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 December 18, 2014, 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 broker, Capital Investment agrees to the issuance of this CONSENT ORDER (Consent Order) by the Commissioner of Banks (Commissioner);
WHEREAS, on May 1, 2012 the Commissioner and Capital Investment entered into a STIPULATION AND CONSENT TO THE ISSUANCE OF A CONSENT ORDER, Docket No. 2012-006 (2012 Consent Order) for the purpose of settling the matters raised during a 2011 Examination of Capital Investment’s books and records;
WHEREAS, an examination of Capital Investment was conducted pursuant to General Laws chapter 255E, section 8, as of January 28, 2014 to assess the Company’s level of compliance with applicable Massachusetts and federal statutes, rules and regulations governing the conduct of those engaged in the business of a mortgage broker in the Commonwealth, as well as to assess the Company’s compliance with the 2012 Consent Order;
WHEREAS, the Report of Examination (the Report) issued pursuant to the Division’s examination of Capital Investment alleged substantial non-compliance with applicable state and federal statutes, rules, and regulations governing the conduct of those engaged in the business of a mortgage broker in the Commonwealth;
WHEREAS, the Division attempted to reach the Company’s manager on several occasions to discuss the severity of violations alleged in the Report and left messages requesting that he contact the Division; however, to date, the Company has not responded to the Division’s request;
WHEREAS, the significant violations alleged in the Report and the failure of the Company to contact the Division to discuss them raise serious concerns regarding the Company’s ability to conduct the mortgage business in an honest, fair, sound, and efficient manner;
WHEREAS, the parties now seek to resolve by mutual agreement, the matters identified in the Report; and
WHEREAS, by mutual agreement of the Company and the Division, the 2012 Consent Order is hereby superseded and replaced by this Consent Order.
NOW COME the parties in the above-captioned matter, the Division and Capital Investment, and stipulate and agree as follows:
- Capital Investment must immediately surrender its Massachusetts mortgage broker license by submitting a "Request to Surrender" to the Division through the Nationwide Multi-State Licensing System & Registry (NMLS).
- Immediately upon the execution of this Consent Order, Capital Investment and any and all officers, directors, or managers or their successors or assigns operating on behalf of Capital Mortgage will cease engaging in the activity of a mortgage broker in Massachusetts, as that term is defined under General Laws chapter 255E, section 1.
- Capital Investment must immediately place with one or more qualified broker(s) or lender(s), as appropriate based on the status of the application and with no loss to applicants, all of its pending Massachusetts residential mortgage loan applications. Capital Investment shall obtain the prior approval of the Commissioner before placing such applications to the qualified broker(s) or lender(s).
- Capital Investment will refrain from submitting an application to obtain a mortgage lender and/or mortgage broker license from the Commissioner for a period of sixty- (60) months from the execution of this Consent Order.
- To the extent that Capital Investment or any of its officers or directors, or managers or their successors or assigns, wishes to resume business as a mortgage lender and/or mortgage broker at the expiration of the 60-month term as set forth above, Capital Investment shall be required to submit a completed application to obtain the relevant license(s) from the Commissioner. The Commissioner shall have all of the discretion set forth within General Laws chapter 255E, section 4 and the Division's regulation 209 CMR 42.00 et seq. in determining whether to issue a license to Capital Investment to conduct the licensed business provided however, that any such application shall not be denied on the basis of this Consent Order; however, any such applicants will be required to demonstrate to the Commissioner’s satisfaction that the deficiencies set forth in the Report will not recur.
- Capital Investment must submit a payment in the amount of two thousand two hundred fifty dollars ($2,250.00) to satisfy the annual report late filing fee assessed against the Company in accordance with M.G.L chapter 255E, section 8. Capital Investment 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, Attn: Mortgage Licensing Unit, 1000 Washington Street, 10th Floor, Boston, Massachusetts 02118.
- Capital Investment agrees that, in the event that the Company fails to submit the payments set forth in this Consent Order in the amounts specified herein and in accordance with applicable deadlines, the Division shall be authorized to submit a claim for such amounts against the mortgage broker Massachusetts surety bond maintained by Capital Investment pursuant to the Division’s regulation 209 CMR 42.06(2)(a).
- Nothing in this Consent Order shall be construed as permitting Capital Investment to violate any law, rule, regulation, or regulatory bulletin to which the Company is subject.
- 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 the Commissioner or a court of competent jurisdiction modifies, terminates, suspends, or sets aside any provision of this Consent Order.
- This Consent Order and the Consent Agreement are the complete documents representing the resolution of this matter. There are no other agreements between the Division and Capital Investment which replaces and supersedes any prior agreements between Capital Investment and the Commissioner.
BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS.
Dated at Boston, Massachusetts, this 18th day of December, 2014
David J. Cotney
Commissioner of Banks
Commonwealth of Massachusetts