COMMONWEALTH OF MASSACHUSETTS
COMMISSIONER OF BANKS
MORTGAGE LOAN ORIGINATOR
Docket No. 2010-381-CO
In the Matter of
Mortgage Loan Originator License No: MLO18956
WHEREAS, JAMES SMITH ("James Smith"), a licensed mortgage loan originator under Massachusetts General Laws chapter 255F, section 2 and 209 CMR 41.00 et seq., has been advised of his right to Notice and Hearing pursuant to Massachusetts General Laws chapter 30A, section 10 and chapter 255F, section 11, 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 6, 2011, whereby, solely for the purpose of settling this matter, James Smith agrees to the issuance of this CONSENT ORDER ("Consent Order") by the Commissioner of Banks ("Commissioner");
WHEREAS, the Division, through the Commissioner, has jurisdiction over the licensing and regulation of persons and entities engaged in the business of a mortgage loan originator in Massachusetts pursuant to Massachusetts General Laws chapter 255F, section 2;
WHEREAS, James Smith's Massachusetts mortgage loan originator license was in an inactive status from March 10, 2009 through April 1, 2009 because he was not properly sponsored by an employing entity through the National Mortgage Licensing System ("NMLS");
WHEREAS, James Smith received actual or constructive notice that his Massachusetts mortgage loan originator license status had changed to "inactive" on March 10, 2008, when his license status was updated on the NMLS;
WHEREAS, on August 11, 2010, pursuant to the authority granted under Massachusetts General Laws chapter 255E, section 8, the Division commenced an examination/inspection ("examination/inspection") of the books, accounts, papers, records, and files maintained by Drew Mortgage Associates, Inc., Shrewsbury, MA, license no. MC0020;
WHEREAS, the Division's review of books and records during the examination/inspection revealed that James Smith originated five (5) Massachusetts residential mortgage loan applications on behalf of Drew Mortgage Associates, Inc. during the period when his license was in an inactive status, prior to his obtaining proper sponsorship from Drew Mortgage;
WHEREAS, the parties now seek to resolve by mutual agreement, the aforementioned matters.
NOW COME the parties in the above-captioned matter, the Division and James Smith, and stipulate and agree as follows:
- On or before the thirtieth day after the effective date of this Consent Order, James Smith shall submit a payment of five thousand dollars ($5,000.00) in satisfaction of an administrative penalty collected in consideration of James Smith originating five residential mortgage loans when he did not have an active license and was not permitted to originate mortgage loans in Massachusetts. James Smith shall remit payment in full of the amount indicated above, payable to the "Commonwealth of Massachusetts", to the Office of the Commissioner of Banks, 1000 Washington Street, 10 th Floor, Boston, Massachusetts 02118.
- 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, 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 that represent the resolution of this matter. There are no other agreements, promises, representations, or warranties other than those set forth in this Consent Order and the Consent Agreement.
BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS.
Dated at Boston, Massachusetts, this 6th day of July, 2011
David J. Cotney
Commissioner of Banks
Commonwealth of Massachusetts