COMMONWEALTH OF MASSACHUSETTS
COMMISSIONER OF BANKS
Docket No. 2009-004-CO
In the Matter of
MORTGAGE FUNDING CORP.
Mortgage Broker License No. MB5024
WHEREAS, MORTGAGE FUNDING CORP., Pembroke, Massachusetts ("Mortgage Funding" or the "Corporation"), a licensed mortgage broker under Massachusetts General Laws chapter 255E, section 2, has been advised of its right to Notice and Hearing pursuant to Massachusetts General Laws chapter 30A, section 10, 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 September 22, 2009, whereby, solely for the purpose of settling this matter, Mortgage Funding agrees to the issuance of this CONSENT ORDER ("Consent Order") by the Commissioner of Banks ("Commissioner").
WHEREAS, The Division of Banks ("Division"), through the Commissioner, has jurisdiction over the licensing and regulation of persons and entities engaged in the business of a mortgage broker in Massachusetts pursuant to Massachusetts General Laws chapter 255E, section 2.
WHEREAS, Mortgage Funding, at all relevant times, has been a Massachusetts Corporation doing business in the Commonwealth with its main office located at 15 Columbia Road, Unit 6, Pembroke, Massachusetts.
WHEREAS, on November 18, 2008, pursuant to the authority granted under Massachusetts General Laws chapter 255E, section 8, the Division commenced an examination/inspection (the "2008 examination/inspection") of the books, accounts, papers, records, and files maintained by Mortgage Funding.
WHEREAS, The Division's Report of Examination/Inspection on Consumer Compliance (the "Report"), which was issued to Mortgage Funding on or about March 27, 2009, presented the findings of the 2008 examination/inspection and alleged significant failures to comply with applicable state and federal laws, rules, regulations, and regulatory bulletins governing the conduct of those engaged in the business of a mortgage broker in Massachusetts.
WHEREAS, on or about March 27, 2009, based upon the findings of the 2008 examination/inspection, the Division issued a FINDINGS OF FACT AND TEMPORARY ORDER TO CEASE AND DESIST (the "Temporary Order"), Docket No. 2009-004, against Mortgage Funding.
WHEREAS, on or about April 16, 2009 Mortgage Funding filed a response to the Temporary Order with the Division whereby the Corporation disputed certain of the Division's findings and alleged violations of law contained in the Temporary Order. By its response, Mortgage Funding further reserved its right to proceed to an administrative hearing in accordance with Massachusetts General Laws chapter 30A;
WHEREAS, on or about April 16, 2009, Mortgage Funding appeared at the Division's offices for an informal conference to discuss the matters raised by the Temporary Order. At the informal conference Mortgage Funding requested that the Division vacate the Temporary Order and filed a Memorandum in support thereof;
WHEREAS, the parties now seek to resolve by mutual agreement, the matters identified in the Temporary Order;
WHEREAS, without this Consent Order constituting an admission by Mortgage Funding of any allegations made or implied by the provisions of the Temporary Order; solely for the purpose of settlement of all alleged violations without protracted administrative proceedings and judicial review, Mortgage Funding hereby waives its right to complete the hearing process relative to this proceeding and affirms that it is willing to take all necessary action as set forth in this Consent Order; and
WHEREAS, in recognition of the Division and Mortgage Funding having reached the following mutual agreement under this Consent Order to resolve the matters raised by the Temporary Order, the Commissioner has terminated the Temporary Order on this 22nd day of September, 2009.
NOW COME the parties in the above-captioned matter, the Division and Mortgage Funding, and stipulate and agree as follows:
- Immediately upon the execution of this Consent Order, Mortgage Funding will refrain from originating or accepting any additional Massachusetts residential mortgage loan applications, or otherwise engaging in the mortgage broker or mortgage lender business, as those terms are defined under General Laws chapter 255E, section 1.
- Immediately upon the execution of this Consent Order, Mortgage Funding will surrender its Massachusetts mortgage broker license MB5024 by returning the original license certificate to the Division at One South Station, 3 rd Floor, Boston, Massachusetts 02110.
- Mortgage Funding will refrain from submitting an application to obtain a mortgage broker and/or mortgage lender license from the Commissioner for a period of thirty-six (36) months from the effective date of the Temporary Order.
- To the extent that Mortgage Funding wishes to resume business as a mortgage broker at the expiration of the 36-month term as set forth above, Mortgage Funding shall be required to submit a completed application to obtain the relevant license(s) from the Commissioner. Unless the Commissioner, in his sole discretion, agrees to accept such an application earlier, Mortgage Funding agrees not to submit such an application until the expiration of the 36-month term. 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 Mortgage Funding to conduct the licensed business, provided however, that any such application shall not be denied solely on the basis of the Temporary Order.
- Mortgage Funding shall submit payment in satisfaction of the full amount owed for the costs of the Division's 2008 examination/inspection as set forth in the relevant invoice issued previously to Mortgage Funding. The payment shall be made payable to the "Commonwealth of Massachusetts" and mailed to Division of Banks, Commonwealth of Massachusetts, P.O. Box 3952, Boston, Massachusetts 02241-3952. It being understood that failure to submit payment shall necessarily present grounds for a denial of any license application submitted to the Division by Mortgage Funding, or its owners, whether submitted before or after the expiration of the 36-month term referenced above.
- The provisions of this Consent Order shall not limit, estop, or otherwise prevent any other state agency or department, from taking any other action affecting Mortgage Funding and/or any of its officers, directors, or managers.
- This Consent Order shall become effective immediately upon the date of its issuance.
- The provisions of this Consent Order shall be binding upon Mortgage Funding and its directors, officers, employees, agents, and their successors and assigns.
- In accordance with the terms of the Consent Agreement entered by Mortgage Funding and the Commissioner, Mortgage Funding has waived all rights of appeal that it may have relative to the Temporary Order.
- The provisions of this Consent Order shall remain effective and enforceable except to the extent that, and until such time as, any provisions of this Consent Order shall have been 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 other than those set forth in this Consent Order, which replaces and supersedes all prior agreements between Mortgage Funding and the Commissioner.
BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS.
Dated at Boston, Massachusetts, this 22nd day of September, 2009
By: Steven L. Antonakes
Commissioner of Banks
Commonwealth of Massachusetts