By the Division of Banks
COMMONWEALTH OF MASSACHUSETTS
COMMISSIONER OF BANKS
MORTGAGE LENDER AND
Docket No. 2016-002
In the Matter of
AMERICAN INTERNET MORTGAGE, INC.
San Diego, California
Mortgage Corporation License No. MC2890
WHEREAS, AMERICAN INTERNET MORTGAGE, INC. d/b/a AIMLOAN.COM, San Diego, California (American Internet Mortgage or the Corporation), a licensed mortgage lender and mortgage broker under Massachusetts General Laws chapter 255E, section 2, has 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 21, 2016, 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 and mortgage broker, American Internet Mortgage agrees to the issuance of this CONSENT ORDER (Consent Order) by the Commissioner of Banks (Commissioner);
WHEREAS, an examination of American Internet Mortgage was conducted pursuant to General Laws chapter 255E, section 8, as of May 19, 2015 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 and mortgage broker in the Commonwealth; and
WHEREAS, the Report of Examination (Report) issued pursuant to the Division’s examination of American Internet Mortgage as of May 19, 2015 alleged non-compliance with certain applicable Massachusetts and federal statutes, rules, and regulations governing the conduct of those engaged in the business of a mortgage lender and mortgage broker in Massachusetts.
WHEREAS, the parties now seek to resolve by mutual agreement, the matters identified in the Report.
NOW COME the parties in the above-captioned matter, the Division and American Internet Mortgage, and stipulate and agree as follows:
- American Internet Mortgage must implement and maintain policies and procedures to ensure that, in a refinance mortgage transaction, loan proceeds are made available to the borrower on the business day following the expiration of the rescission period.
- American Internet Mortgage has conducted a review of all Massachusetts loans closed from October 1, 2012 through March 31, 2015 and identified all cases where borrowers were charged per diem interest during the period between the funding date noted on the HUD-1 that was signed at closing and the date the funds were disbursed to the borrowers. American Internet Mortgage has reimbursed all borrowers for the full amount of interest collected during that period and submitted to the Division evidence of such reimbursements, including the consumer’s name, the date of the loan and loan number, the amount reimbursed, the check number and certified mail receipts to illustrate the consumers’ receipt of the reimbursements.
- American Internet Mortgage must expand independent audits to include fair lending, Home Mortgage Disclosure Act (HMDA), and Equal Credit Opportunity Act (ECOA) reviews.
- American Internet Mortgage must address all matters requiring attention set forth in the Report within the time frames contained therein. American Internet Mortgage must also implement all corrective actions described in the Report that are not specifically addressed by this Consent Order.
- American Internet 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 or before the thirtieth (30th) day after the end of each calendar quarter following the date of this Consent Order, American Internet Mortgage shall 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 American Internet Mortgage detailing a review of management’s and staff persons’ 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 American Internet Mortgage’s compliance condition in Massachusetts, and the results thereof.
- The reporting requirement to the Division referenced in Section 5 of this Consent Order will remain in effect and will 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 will be construed as permitting American Internet Mortgage to violate any law, rule, regulation, or regulatory bulletin to which American Internet Mortgage 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 American Internet Mortgage’s mortgage lender and mortgage broker licenses under Massachusetts General Laws chapter 255E, section 6, while this Consent Order is in effect, but subject to the provisions of Section 9.
- Failure to comply with the terms of this Consent Order will constitute grounds for license suspension and/or revocation, or other formal regulatory actions pursuant to applicable provisions of the General Laws of the Commonwealth of Massachusetts.
- This Consent Order will become effective immediately upon the date of its issuance.
- The provisions of this Consent Order will remain effective and enforceable except to the extent that, and until such time as, any provision of this Consent Order be 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 between the Division and American Internet Mortgage.
BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS.
Dated at Boston, Massachusetts, this 21st day of April, 2016
By: David J. Cotney
Commissioner of Banks
Commonwealth of Massachusetts