March 30, 2004
Macro Financial Corporation
Ian Kellerman, Principal
464 Spadina Road, Suite 410
Toronto, Ontario M5P2W4
Dear Mr. Kellerman:
The Division of Banks (the "Division") has received information from the Better Business Bureau of Natick, Massachusetts regarding you and Macro Financial Corporation ("Macro Financial") acting as a small loan company, mortgage lender and/or as a mortgage broker. Unless Macro Financial can show it is exempt from licensing under the provisions of Massachusetts General Laws chapters 255E, section 2 and chapter 140, section 96, it is prohibited from acting as a mortgage lender, mortgage broker, or small loan company without a license. Conducting business without a license is a violation of G.L. c. 255E, §2 and 140, section 96, which state 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...
Section 96. No person shall directly or indirectly engage in the business of making loans of six thousand dollars or less, if the amount to be paid on any such loan for interest and expenses exceeds in the aggregate an amount equivalent to twelve per cent per annum upon the sum loaned, without first obtaining from the commissioner of banks, in sections ninety-six to one hundred and fourteen, inclusive, called the commissioner, a license to carry on the said business in the town where the business is to be transacted.
You and Macro Financial are hereby ordered to cease in engaging in activity as a small loan company, mortgage lender and as a mortgage broker until such time as you have either (1) demonstrated your and Macro Financial's exempt status; or (2) obtained a license through the Division's normal application process.
You should also note that 940 CMR 8.06(9) of the Office of the Attorney General's Mortgage Brokers and Mortgage Lenders regulations, states in part,
It is considered an unfair or deceptive act for a mortgage broker or mortgage lender to conduct business with a person which should be licensed under G.L. c. 255E, and which it knows or should know is an unlicensed mortgage broker or lender.
Should a licensed mortgage lender or mortgage broker be found to be engaging in unfair or deceptive practices, it will be in violation of G.L. c. 93A. A violation of G.L. c. 93A is also considered a violation of 209 CMR 42.00, the Division's regulations relative to the Licensing of Mortgage Lenders and Mortgage Brokers.
A response to this letter must be received by the Division within 10 business days. The response must either provide satisfactory evidence that you and Macro Financial are exempt from General Laws chapters 140, section 96 and chapter 255E, section 2 or indicate whether you or Macro Financial will seek to be licensed under General Laws chapters 140, section 96 and chapter 255E, section 2 and, if so, indicate approximately when a completed application will be submitted to the Division. In addition, the response must also include a copy of the enclosed affidavit, completed by you attesting that you and Macro Financial will immediately cease from acting as a small loan company, mortgage lender and as a mortgage broker and a list of loans originated by Macro Financial during the past twelve (12) months.
It should be noted that a letter directing you to cease this activity (copy attached) was sent to you on March 29, 2004 to the address listed on your web site as well as via facsimile. As the Division has since learned that this may not be your appropriate business address, this directive is being sent again.
Failure to comply with the statute's licensing requirement will result in the imposition of fines in the amount of $500.00 for each day a violation occurs or continues and/or may result in imprisonment under G.L. c. 255E, §9 and §10. Accordingly, further violations of General Laws chapters 140 and 255E will be immediately referred to the Office of the Attorney General for appropriate enforcement action.
Very truly yours,
Steven L. Antonakes
Commissioner of Banks