By the Division of Banks


 

COMMONWEALTH OF MASSACHUSETTS

Suffolk, SS.

COMMISSIONER OF BANKS
MORTGAGE LENDER AND
MORTGAGE BROKER
LICENSING
Docket No. 2017-008

CONSENT ORDER

In the Matter of

AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE
COMPANY LLC d/b/a ANNIEMAC HOME MORTGAGE

Mount Laurel, New Jersey

Mortgage Lender and Broker License No. MC338923


WHEREAS, AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC d/b/a ANNIEMAC HOME MORTGAGE,  (American Neighborhood Mortgage or the Company), a licensed mortgage broker and 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 July 12, 2017, 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 and mortgage lender, American Neighborhood Mortgage agrees to the issuance of this CONSENT ORDER (Consent Order) by the Commissioner of Banks (Commissioner);

WHEREAS, a compliance examination and Mortgage Lender Community Investment (CRA) examination of American Neighborhood Mortgage were conducted pursuant to General Laws chapter 255E, section 8, as of November 29, 2016 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 and mortgage lender in the Commonwealth;

WHEREAS, the Report of Examination (Report) issued pursuant to the Division’s  Examination, alleged non-compliance with applicable Massachusetts and federal statutes, rules, and regulations governing the conduct and licensing of those engaged in the business of a mortgage broker and  mortgage lender in the Commonwealth; and

WHEREAS, the parties now seek to resolve by mutual agreement, the matters identified in the Report;

ORDER

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

  1. American Neighborhood Mortgage shall cease making reverse mortgage loans in the Commonwealth unless and until the Company obtains the Division’s approval of the reverse mortgage program(s), as required pursuant to M.G.L. c. 183, section 67.  It is understood that the Commissioner does not guarantee the approval of any such application(s) filed by the Company; provided, however, that any such filing shall not be rejected as a result  of any of the issues resolved by this Consent Order, or because the Company entered into the Consent Agreement with the Division.
    1. American Neighborhood Mortgage agrees to submit a payment in the amount of fifteen thousand dollars ($15,000.00) in consideration of the Company’s failure to obtain approval of reverse mortgage programs prior to offering them to consumers.  The administrative penalty shall be satisfied as follows: 
      1. Five thousand dollars ($5,000.00) shall be due and payable immediately upon American Neighborhood Mortgage’s execution of the Consent Agreement;    
      2. A payment of five thousand dollars ($5,000.00) shall be due and payable upon 30 days after the effective date of this Consent Order;
      3. A final payment of five thousand dollars ($5,000.00) shall be due and payable 30 days after the second payment is due and payable; and
      4. American Neighborhood Mortgage shall remit payment(s) pursuant to this Section of the Consent Order for the amount then due, payable to the “Commonwealth of Massachusetts,” to the Office of the Commissioner of Banks, 1000 Washington Street, 10th Floor, Boston, Massachusetts 02118
  1. American Neighborhood Mortgage shall 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. 
    1. American Neighborhood Mortgage shall reimburse a total of two hundred and twenty six dollars ($226.00) to the borrowers identified in the Report for the duplicate discharge/release fees that were collected, and shall provide evidence to the Division of the refunds paid to the borrowers.
  1. American Neighborhood Mortgage shall develop, implement, and maintain a written information security program (WISP), as required pursuant to the Office of Consumer Affairs and Business Regulation’s (OCABR) regulation 201 CMR 17.00 et seq.
  2. American Neighborhood Mortgage shall address all matters requiring attention set forth in the Report within the time-frames contained therein.  American Neighborhood Mortgage shall also implement all corrective actions described in the Report that are not specifically addressed by this Consent Order.
    1. American Neighborhood Mortgage shall 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.
  1. On the thirtieth (30th) day after the end of each calendar quarter following the date of this Memorandum, American Neighborhood Mortgage shall furnish written progress reports to the Division via secure email to DOBProgressReport@state.ma.us.  Such progress reports shall detail the form, content, and manner of any actions taken to address each section of this Consent Order, and describe, in detail, any other consumer compliance initiatives instituted during the calendar quarter to improve the compliance position of American Neighborhood Mortgage, and the results thereof.  Each progress report submitted to the Division pursuant to this Section of the Consent Order shall be reviewed and signed by a duly authorized officer of the Corporation.
  2. Nothing in this Consent Order shall be construed as permitting American Neighborhood Mortgage to violate any law, rule, regulation, or regulatory bulletin to which the Company is subject.
  3. In consideration of the foregoing Consent Order, the Division agrees not to pursue formal measures, relative to this matter, to suspend or revoke American Neighborhood Mortgage’s mortgage broker or mortgage lender license under Massachusetts General Laws chapter 255E, section 6, while this Consent Order is in effect, but subject to the provisions of Section 8 of this Consent Order.
  4. 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.
  5. This Consent Order shall become effective immediately upon the date of its issuance.
  6. 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.
  7. 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 American Neighborhood Mortgage.

 

BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS.

Dated at Boston, Massachusetts, this 12th day of July, 2017

By: Terence A. McGinnis
Commissioner of Banks
Commonwealth of Massachusetts