By the Division of Banks


COMMONWEALTH OF MASSACHUSETTS

Suffolk, SS.

COMMISSIONER OF BANKS
MORTGAGE LENDER AND
MORTGAGE BROKER LICENSING
Docket No. 2014-007

CONSENT ORDER

In the Matter of

Guaranteed Rate, Inc.
Chicago, Illinois

Mortgage Company License No. MC2611


WHEREAS, GUARANTEED RATE, INC., Chicago, Illinois (GRI or the Corporation), a licensed mortgage lender and 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 July 15, 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 lender, GRI agrees to the issuance of this CONSENT ORDER (Order) by the Commissioner of Banks (Commissioner);

WHEREAS, a Mortgage Lender Community Investment examination of GRI was conducted pursuant to General Laws chapter 255E, section 8, as of May 31, 2012 to assess the Corporation’s level of compliance with applicable Massachusetts statutes and the Division’s regulations governing the conduct of those engaged in the business of a mortgage lender in the Commonwealth; and

WHEREAS, the Report of Examination (the “Report”) issued pursuant to the Division’s examination of GRI as conducted as of May 31, 2012 alleged compliance deficiencies with regard to certain applicable state and federal statutes, rules, and regulations governing the conduct of those engaged in the business of a mortgage lender in Massachusetts.

ORDER

NOW COME the parties in the above-captioned matter, the Division and GRI, and stipulate and agree as follows:

  1. GRI has established, implemented, enhanced and will maintain procedures to ensure compliance with the loan reporting requirements set forth in the Home Mortgage Disclosure Act (HMDA), 12 U.S.C. section 2801 et seq., as implemented by the Consumer Financial Protection Bureau, 12 C.F.R. Part 1003 (Regulation C).  Such procedures shall necessarily require the Corporation to continue to implement internal controls to ensure, for all HMDA reportable loan applications, GRI accurately compiles and records all required data in the Corporation’s HMDA Loan Application Register (LAR).
    1. GRI has established, implemented, and will maintain operating policies and training procedures to ensure all applicable personnel possess a comprehensive understanding of the HMDA reporting requirements under Regulation C.  Such training shall necessarily ensure the proper implementation and execution of the revised practices and procedures adopted by GRI pursuant to this Section of the Order.
    2. GRI agrees to submit a payment in the amount of twenty-five thousand dollars ($25,000.00) in satisfaction of an administrative penalty collected in consideration of the Corporation’s alleged failure to comply with the statutes, rules and regulations governing the conduct of those engaged in the business of a mortgage lender in Massachusetts.  GRI 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.  The Division shall remit the payment for deposit into the General Fund of the Commonwealth.
  2. GRI shall comply with all federal and Massachusetts laws and regulations applicable to conducting the business of a mortgage lender and mortgage broker, including, but not limited to: Massachusetts General Laws chapters 255E and 255F, and the Division’s regulations 209 CMR 41.00 et seq. and 209 CMR 42.00 et seq.
    1. GRI has established, implemented, and will maintain quality control standards which provide for a loan review process to assess the Corporation’s compliance with: (i) the statutes, rules, regulations, regulatory bulletins, and other relevant provisions of law applicable to those engaged in the business of a mortgage lender in Massachusetts, and (ii) the provisions of this Order.  Such quality control standards shall be designed to prevent the occurrence of the alleged violations addressed in the Report; and
    2. GRI has established, implemented, and will maintain procedures and policies to ensure all applicable staff persons receive adequate instruction and ongoing, periodic training to ensure proper implementation and execution of the revised practices and procedures implemented pursuant to this Order.
  3. GRI has established, implemented, and will maintain procedures to ensure compliance with the Equal Credit Opportunity Act, 15 U.S.C. 1691 et seq., as administered by the Consumer Financial Protection Bureau, 12 C.F.R. Part 1002 (“Regulation B”).
    1. GRI shall implement internal controls to ensure that the Corporation provides applicants the appropriate notification on applications deemed to be incomplete in accordance with Section 1002.9 of Regulation B.  Such procedures shall require the Corporation to ensure applications are only deemed closed for incompleteness when the requisite notice is provided to the applicant(s).
    2. GRI must implement internal controls to ensure the Corporation collects and records the proper Government Monitoring information on all applications or properly records the information was not provided in accordance with Section 1002.13(b) of Regulation B.
  4. GRI has established, implemented and will maintain procedures to ensure all applicants whose residential mortgage loan application is denied receive a Mortgage Review Board Disclosure Form notifying applicants of their right to appeal such denial to the review board in accordance with Massachusetts General Laws chapter 167, section 14A.  For each consumer loan file, a completed copy of the Mortgage Review Board Disclosure Form shall be retained in the Corporation’s books and records as evidence of compliance.
  5. Nothing in this Order shall be construed as permitting GRI to violate any law, rule, regulation, or regulatory bulletin to which the Corporation is subject.
  6. In consideration of the foregoing Order, the Division agrees not to pursue formal measures, relative to this matter, to suspend or revoke GRI’s mortgage lender license under Massachusetts General Laws chapter 255E, section 6, while this Order is in effect.
  7. GRI agrees, in the event the Corporation fails to submit the payment set forth in this Consent Order in the amount specified herein and in accordance with the applicable deadline, the Division shall be authorized to submit a claim for such amount against the mortgage lender’s Massachusetts surety bond maintained by GRI pursuant to the Division’s regulation 209 CMR 42.03(2)(a).
  8. Failure to comply with the terms of this Order shall constitute grounds for license suspension and/or revocation, or other formal regulatory action pursuant to applicable provisions of the General Laws of the Commonwealth of Massachusetts.
  9. This Order shall become effective immediately upon the date of its issuance.
  10. The provisions of this 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 Order.
  11. This Order and the Consent Agreement are the complete documents representing the resolution of this matter.  There are no other agreements between the Division and GRI.

BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS.

Dated at Boston, Massachusetts, this 15th day of July, 2014

David J. Cotney
Commissioner of Banks
Commonwealth of Massachusetts

THIS CONSENT ORDER WAS TERMINATED ON MAY 7, 2015.