For Immediate Release - January 31, 2011

Governor Patrick Names David J. Cotney Commissioner of Banks

Cotney has served as Chief Operating Officer of Division of Banks during 20-year career

BOSTON - Monday, January 31, 2011 - Governor Deval Patrick today announced David J. Cotney as the new Commissioner of Banks. Cotney, 43, began his 20-year career at the Division of Banks as an examiner and most recently served as Chief Operating Officer of the agency. Cotney will oversee a staff of approximately 160 employees and a budget of $15.8 million. Cotney has served as Acting Commissioner since the departure of Steven Antonakes in November 2010.

"In a period of significant change in financial services regulation, David and the Division of Banks have maintained one of the strongest state-chartered banking systems in the nation," said Governor Patrick. "At the same time, David has played a key role in expanding consumer protection in the areas of mortgage-broker licensing and foreclosure assistance."

The Division of Banks oversees nearly 240 state-chartered banks and credit unions with total assets of approximately $255 billion. The Division is also responsible for the licensing and supervision of nearly 800 mortgage lenders and brokers, over 4,000 individual mortgage loan originators, and an additional 3,500 non-bank financial entities, including check cashers, money transmitters, finance companies and debt collectors.

Cotney played a national role in the creation of the Nationwide Mortgage Licensing System, which allows regulators and consumers to track a mortgage broker through an online database of licensed brokers. Cotney and the Massachusetts Division of Banks were leaders in getting all states and territories entered into the system.

As COO and now Commissioner of Banks, Cotney is also a leader in the Patrick-Murray Administration's comprehensive response to the state's foreclosure crisis. Cotney played a role in implementing legislation signed by the Governor in 2007 that created foreclosure prevention initiatives, and he is currently involved in hearings regarding upcoming regulations on foreclosure right-to-cure notices, and reverse mortgage counseling and related issues.

"I am honored that Governor Patrick chose me for a job that presents significant opportunities to strengthen consumer protections in the financial services industry, while also maintaining a secure and sound state-chartered banking and financial-services system," said Cotney.

Cotney is the first state regulator to ever Chair the Federal Financial Institutions Examination Council's (FFIEC) Consumer Compliance Task Force. He holds a Bachelor Arts degree from Tufts University, a Master in Public Administration from Harvard University's John F. Kennedy School of Government, and a Master of Business Administration from Boston University.

The Division of Banks oversees state-chartered banks, credit unions, check sellers, debt collectors, foreign transmittal agencies, lenders, and mortgage brokers, and is an agency within the Office of Consumer Affairs and Business Regulation. Follow the Office at www.mass.gov/consumer, its Consumer Connections Blog and at its Twitter feed, @Mass_Consumer.

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