By the Division of Banks
COMMONWEALTH OF MASSACHUSETTS
COMMISSIONER OF BANKS
MORTGAGE LENDER AND
MORTGAGE LOAN ORIGINATOR LICENSING
Docket No. 2011-013
In the Matter of
JON HOWARD SICCO, Individually
The Commissioner of Banks ("Commissioner") is charged with the administration of Massachusetts General Laws chapter 255E, and applicable regulations found at 209 CMR 42.00 et seq., relating to the licensing of mortgage lenders and mortgage brokers; and Massachusetts General Laws chapter 255F and applicable regulations found at 209 CMR 41.00 et seq., relating to the licensing of mortgage loan originators.
Pursuant to the authority granted by Massachusetts General Laws chapter 255E and Massachusetts General Laws Chapter 255F, the Commissioner has investigated the activities of Jon Howard Sicco ("Jon Sicco"), with a mailing address of 8 Thomas Dr
Chelmsford, MA 01824 to determine if Jon Sicco, either acting individually and/or on behalf of Security National Mortgage Company ("Security National"), has engaged in the business of, and continuing to engage in, acts or practices constituting violations of Massachusetts General Laws chapter 255E, and Massachusetts General Laws chapter 255F. Based upon such investigation, the Division hereby issues the following CEASE DIRECTIVE ("Directive") as a result of the findings alleged herein.
A. FINDINGS OF FACT
- 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 lender and mortgage broker in Massachusetts pursuant to Massachusetts General Laws chapter 255E, section 2 and mortgage loan originator activity in Massachusetts pursuant to Massachusetts General Laws chapter 255F, section 2.
- According to the Division’s records, the Commissioner issued a mortgage loan originator license, license number MLO 16371, to Jon Sicco to engage in the business of a mortgage loan originator on or about October 23, 2008.
- On May 21, 2010, the Division entered into a Consent Order ("2010 Consent Order") with Jon Sicco based upon the findings of the September 19, 2009 investigation (the "2009 Investigation") which was initiated in response to an inquiry received by the Division’s Consumer Assistance Unit.
- On May 21, 2010, as a requirement in the 2010 Consent Order, Mr. Sicco surrendered his mortgage loan originator license through the Nationwide Mortgage Licensing System (NMLS).
- Additionally, the 2010 Consent Order required that Jon Sicco refrain from submitting an application to obtain a mortgage loan originator license from the Commissioner for a period of thirty-six (36) months from the May 21, 2010 effective date of the 2010 Consent Order.
I. Unlicensed Activity
- Massachusetts General Laws chapter 255E, section 2 relative to the licensing requirements for entities engaged in the business of a mortgage lender and/or mortgage broker states in part:
No person shall act as a mortgage broker or mortgage lender with respect to residential property unless first obtaining a license from the commissioner.
- 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 lender and mortgage broker in Massachusetts pursuant to Massachusetts General Laws chapter 255E, section 2 and its implementing regulations at 209 CMR 42.00 et seq.
- The Division also has jurisdiction over the licensing and regulation of individuals engaged in mortgage loan originator activity pursuant to Massachusetts General Laws chapter 255F, section 2 and its implementing regulation 209 CMR 41.00 et seq.
- Massachusetts General Laws chapter 255F, section 2(a), states, in part
No individual shall act as a mortgage loan originator with respect to any dwelling unless such person has first obtained a mortgage loan originator license from the commissioner or is exempt from the licensure requirement ... No person shall knowingly employ or retain a mortgage loan originator unless the mortgage loan originator is licensed under this chapter or is exempt from the licensure requirements.
- Massachusetts General Laws chapter 255F, section 1, identifies a mortgage loan originator as:
A person who for compensation or gain or in the expectation of compensation or gain: (i) takes a residential mortgage loan application; or (ii) offers or negotiates terms of a residential mortgage loan.
- On or about June 6, 2012, the Division received a consumer complaint regarding Jon Sicco, Business Development Manager at Security National Mortgage Company.
- The Complaint indicated that from August, 2011 through January, 2012, Mr. Sicco exchanged electronic mail correspondence with Massachusetts consumers soliciting consumers to refinance their home.
- The initial electronic mail dated August 10, 2011, was sent to approximately 50 people. The electronic mail stated that Mr. Sicco owned his own mortgage company and was a lender and a broker. Mr. Sicco further discussed rates being in the "mid 4’s" for 30 year fixed rate mortgages and in the "mid 3’s" for 15 year mortgages. Additionally, Mr. Sicco offered these refinance options with "no points and no closing costs."
- At the request of Mr. Sicco, the complainant provided information regarding their current mortgage, such as the type of mortgage, amount remaining on the loan, amount of payments, and taxes.
- Mr. Sicco responded to the complainant’s electronic mail by offering a "10 year mortgage at 3.25% with payments of $1759." In the signature of the electronic mail, Mr. Sicco was listed as branch manager at E-Mortgage Management, LLC.
- According to the Division’s records Mr. Sicco was never approved as a branch manager at E-Mortgage Management, LLC.
- The complainant and Mr. Sicco continued discussing rates and payment amounts in electronic mail exchanged in August, 2011.
- On February 7, 2012, Mr. Sicco emailed the consumer stating that he had started up with a new bank that he is part owner of and a rate of "3.375% on a 15 year" was available. The signature on the February 7, 2012 electronic mail listed Mr. Sicco as "Business Development Manager," for Security National Mortgage Company.
- Upon the complainant’s agreement to start the refinancing process, Mr. Sicco requested complete names, addresses, social security numbers and date of birth for each applicant.
- According to the Division’s records, Mr. Sicco never owned his own mortgage company or bank, was not licensed as a mortgage broker or lender, and at the time was not licensed to conduct business in Massachusetts as a mortgage loan originator.
II. Substantial Non-Compliance with the Terms of a Consent Order
- The Division’s 2009 Investigation raised serious concerns relating to Jon Sicco’s failure to comply with state and federal laws, rules, regulations and regulatory bulletins governing the conduct of a licensed loan originator in Massachusetts.
- Based on the concerns identified in the 2009 Investigation, the Division entered into a Consent Order with Jon Sicco on May 21, 2010.
- Paragraph 1 of the 2010 Consent Order states:
Immediately upon the execution of this Consent Order, Jon Sicco will refrain from negotiating, soliciting, arranging, providing or accepting any Massachusetts residential mortgage loan application, or assisting any consumer in completing such application, or otherwise operate as a mortgage loan originator, as that term is defined under General Laws chapter 255F, section 1.
- Paragraph 8 of the 2010 Consent Order states:
Failure to comply with the terms of this Consent Order shall constitute grounds for the denial of any future license application submitted to the Division.
- The consumer electronic mail referred to in paragraphs 11 through 18 of this Cease Directive identify instances where Mr. Sicco did not abide by the provisions of the 2010 Consent Order.
B. CEASE DIRECTIVE
- Jon Sicco and any agents operating on behalf of Jon Sicco and their successor or assigns, shall immediately cease engaging in the activities of a mortgage lender and/or mortgage broker, as those activities are defined under Massachusetts General Laws chapter 255E, section 1, relative to any residential property in Massachusetts. Therefore, Jon Sicco is ordered to immediately cease soliciting, negotiating or accepting, either directly or indirectly, any residential mortgage loan applications from consumers for residential property located in Massachusetts.
- Jon Sicco shall immediately cease engaging in the activities of a mortgage loan originator, as those activities are defined under Massachusetts General Laws chapter 255F, section 1, relative to any residential property in Massachusetts. Therefore, Jon Sicco is ordered to immediately cease taking, offering or negotiating terms of a residential mortgage loan from consumers for residential property located in Massachusetts.
- Jon Sicco shall submit to the Commissioner a detailed record, prepared as of the date of submission, of all pending residential mortgage loan applications he has taken and negotiated on property located in Massachusetts. The records to be produced shall be submitted to the Commissioner within five (5) dates of the effective date of this Cease Directive and shall include all information on file, regarding Jon Sicco’s open application list, including but not necessarily limited to, the following:
- All information on file as of the date of submission regarding Jon Sicco open application list as a mortgage broker, mortgage lender and mortgage loan originator including but not limited to, the following:
- The names of all individuals from whom Jon Sicco has accepted an application for a residential mortgage loan; the applicants’ addresses and telephone numbers; the amount of all prepaid loan fees submitted by the customer; the amount of each loan; application status (i.e. filed, submitted to lenders, cleared to close, etc.); scheduled closing dates; rate lock status; and a list identifying the applicable broker or lender with whom the applicants’ application was placed. The latter list should include telephone numbers of contact persons familiar with Jon Sicco submitted loans.
- Jon Sicco must submit a response within five (5) days of receipt of this Cease Directive. The response submitted by Jon Sicco must also include a signed copy of the enclosed affidavit, attesting that Jon Sicco will immediately cease from engaging in any unlicensed or unauthorized mortgage lending, brokering, loan originator activity including any use of solicitations or advertising in Massachusetts.
BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS:
Dated at Boston, Massachusetts, this 19th day of July, 2012
David J. Cotney
Commissioner of Banks
Commonwealth of Massachusetts