By the Division of Banks
COMMONWEALTH OF MASSACHUSETTS
COMMISSIONER OF BANKS
Docket No. 2014-024
In the Matter of
CROSSCOUNTRY MORTGAGE, INC.
Mortgage Lender License No(s). ML3029 et al.
WHEREAS, CROSSCOUNTRY MORTGAGE, INC., Brecksville, Ohio (CrossCountry Mortgage or the Corporation), a licensed mortgage lender 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 January 14, 2015, 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, CrossCountry Mortgage agrees to the issuance of this CONSENT ORDER (Consent Order) by the Commissioner of Banks (Commissioner);
WHEREAS, an examination was conducted pursuant to General Laws chapter 255E, section 8, as of November 6, 2013 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 lender in the Commonwealth; and
WHEREAS, the Report of Examination (Report) issued pursuant to the Division’s examination of CrossCountry Mortgage alleged non-compliance with applicable state and federal statutes, rules, and regulations governing the conduct of those engaged in the business of a mortgage lender in Massachusetts.
NOW COME the parties in the above-captioned matter, the Division and CrossCountry Mortgage, and stipulate and agree as follows:
- CrossCountry Mortgage has established, implemented and will maintain procedures to ensure that all mortgage loan originators with whom the Corporation conducts business are properly licensed as mortgage loan originators under Massachusetts General Laws chapter 255F and sponsored through the Nationwide Multi-State Licensing System & Registry (NMLS) by CrossCountry Mortgage.
- CrossCountry Mortgage shall submit a payment in the amount of forty thousand dollars ($40,000.00) in satisfaction of an administrative penalty collected in consideration of the Corporation conducting business with mortgage loan originators who did not hold an active mortgage loan originator license at the relevant time. CrossCountry Mortgage 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 Division of Banks, Attn: Mortgage Lender Examination Unit, 1000 Washington Street, 10th Floor, Boston, Massachusetts 02118.
- CrossCountry Mortgage must establish, implement and maintain written policies and procedures designed to strengthen its compliance management program and ensure that the Corporation is capable of effectively monitoring and overseeing the Corporation’s employees and operations. CrossCountry Mortgage must allocate resources as necessary to maintain a robust compliance management program, including but limited to: increasing its regulatory compliance training for staff; and strengthening its compliance monitoring program.
- CrossCountry Mortgage has developed a complaint resolution policy that will ensure that that the Corporation timely responds to all complaints and that such complaints are properly documented and recorded in the Corporation’s books and records. CrossCountry must monitor this policy to ensure it is properly implemented and maintained.
- CrossCountry Mortgage must establish, implement, and maintain appropriate policies and procedures for the monitoring and oversight of its settlement agents and/or closing attorneys to ensure that no duplicate discharge/release recording fees are collected from Massachusetts borrowers.
- CrossCountry Mortgage must establish, implement, and maintain procedures to ensure that only mortgage loan applicants whose loan applications are denied by the Corporation are provided with the notice of their right to appeal the denial to the appropriate mortgage review board pursuant to Massachusetts General Laws chapter 167, section 14A.
- CrossCountry Mortgage must establish, implement and 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 12 C.F.R. Part 1003 (Regulation C). Such procedures shall require that the Corporation implement internal controls to ensure that, for all HMDA reportable loan applications, CrossCountry Mortgage accurately compiles and records all required data in the Corporation’s HMDA Loan Application Register (LAR).
- CrossCountry Mortgage must establish, implement, and maintain procedures to ensure that the Corporation is in compliance with the Division’s regulation 209 CMR 53.00 et seq. regarding determination and documentation of a borrower’s interest when refinancing a home loan that was consummated within 60 months prior to the Corporation’s receipt of an application for a new home loan. Such procedures shall ensure that the burden is upon CrossCountry Mortgage, exclusively, to determine that the refinancing is in the borrower’s interest.
- CrossCountry Mortgage must ensure that the worksheet or other document indicating that a refinance loan is in the borrower’s interest is completed by the Corporation and does not, in any manner, shift the burden to the borrower to determine and to demonstrate that the home loan is in the borrower’s interest.
- CrossCountry Mortgage must address all matters requiring attention set forth in the Report within the time frames contained therein. CrossCountry Mortgage must also implement all correctives discussed in the Report.
- CrossCountry Mortgage must establish, implement, and maintain procedures and policies to ensure that all applicable personnel receive adequate instruction and ongoing, periodic training to ensure proper implementation and execution of the revised practices and procedures implemented pursuant to this Consent Order.
- On the thirtieth (30th) day after the end of each calendar quarter following the date of this Consent Order, CrossCountry Mortgage must furnish written progress reports to the Division, which shall address and include the following:
- A description of the form, content, and manner of any actions taken to address each Section of this Consent Order and the results thereof; and
- Written findings prepared by CrossCountry Mortgage detailing a review of management’s and staff members’ adherence to the policies, programs, and procedures adopted pursuant to this Consent Order and to applicable statutes, regulations, and rules, as well as a description of any operational changes implemented during such quarter which are intended to improve CrossCountry Mortgage’s compliance condition in Massachusetts and the results thereof.
- The reporting requirement to the Division referenced in Section 11 of this Consent Order shall remain in effect and shall not be amended or rescinded without the prior written modification, termination, or suspension of the applicable provision of this Consent Order from the Commissioner.
- Nothing in this Consent Order shall be construed as permitting CrossCountry Mortgage to violate any law, rule, regulation, or regulatory bulletin to which the Corporation is subject.
- In consideration of the foregoing Consent Order, the Division agrees not to pursue formal measures, relative to this matter, to suspend or revoke CrossCountry Mortgage’ mortgage lender license under Massachusetts General Laws chapter 255E, section 6, while this Consent Order is in effect, but subject to Section 15.
- Failure to comply with the terms of this Consent 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.
- CrossCountry Mortgage agrees that, in the event that the Corporation fails to submit the payment set forth in this Consent Order in the amount specified herein and in accordance with the applicable deadlines, the Division shall be authorized to submit a claim for such amount against the mortgage lender Massachusetts surety bond maintained by CrossCountry Mortgage pursuant to the Division’s regulations 209 CMR 42.03(2)(a).
- 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 CrossCountry Mortgage.
BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS.
Dated at Boston, Massachusetts, this 14th day of January, 2015
David J. Cotney
Commissioner of Banks
Commonwealth of Massachusetts