By the Division of Banks

COMMONWEALTH OF MASSACHUSETTS

Suffolk, SS.

COMMISSIONER OF BANKS
MORTGAGE LOAN
ORIGINATOR LICENSING
Docket No. 2009-128-MLO-CO

CONSENT ORDER


In the Matter of
JOHN K. RICHMAN

Mortgage Loan Originator License No. MLO19593


WHEREAS, JOHN K. RICHMAN ("John Richman" or the "Licensee"), a licensed mortgage loan originator under Massachusetts General Laws chapter 255F, section 2, has been advised of his 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 March 3, 2010, whereby, solely for the purpose of settling this matter, John Richman 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 engaged in the business of a mortgage loan originator in Massachusetts pursuant to Massachusetts General Laws chapter 255F, section 2;

WHEREAS, John Richman is licensed by the Commissioner as a mortgage loan originator under Massachusetts General Laws chapter 255F, section 2. According to records maintained on file with the Division, the Commissioner initially issued a mortgage loan originator license, license number MLO19593 to John Richman to engage in the business of a mortgage loan originator on or about July 17, 2008;

WHEREAS, at all relevant times, John K. Richman was the Vice President and 50% owner of Union Capital Mortgage Business Trust ("Union Capital" or the "Corporation"). According to records maintained by the Division, John K. Richman identified himself as Vice President and "control person" of Union Capital;

WHEREAS, on or about November 12, 2009, based upon the findings of a 2009 examination/inspection of Union Capital, the Division issued a FINDINGS OF FACT AND TEMPORARY ORDER TO CEASE AND DESIST (the "Temporary Order"), Docket No. 2009-128, against John Richman and alleged a failure to comply with state and federal laws, rules, regulations and regulatory bulletins governing the conduct of a licensed loan originator in Massachusetts;

WHEREAS, on or about December 2, 2009, John Richman filed a response to the Temporary Order and by his response, John K. Richman further reserved his right to proceed to an administrative hearing in accordance with Massachusetts General Laws chapter 30A;

WHEREAS, on or about December 17, 2009, John Richman appeared at the Division's offices for an informal conference to discuss the matters raised by the Temporary Order;

WHEREAS, John Richman agrees to enter this Consent Order solely for the purpose of settling this matter and without admitting any allegations or implications of fact or the existence of any violations of applicable state and federal statutes or rules;

WHEREAS, the parties now seek to resolve by mutual agreement, the matters identified in the Temporary Order; and

WHEREAS, in recognition of the Division and John Richman 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 3rd day of March, 2010.

ORDER

NOW COME the parties in the above-captioned matter, the Division and John Richman, and stipulate and agree as follows:

  1. Immediately upon the execution of this Consent Order, John Richman 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.
  2. Immediately upon the execution of this Consent Order, John Richman will surrender his Massachusetts mortgage loan originator license no. MLO19593 by submitting a " Request to Surrender" filing to the Division through the Nationwide Mortgage Licensing System (NMLS).
  3. John Richman will refrain from submitting an application to obtain a mortgage loan originator license from the Commissioner for a period of sixty (60) months from the effective date of the Temporary Order.
  4. To the extent that John Richman wishes to resume or engage in business as a mortgage loan originator at the expiration of the 60-month term as set forth above, John Richman shall be required to submit a completed application to obtain the relevant license from the Commissioner. Unless the Commissioner, in his sole discretion, agrees to accept such an application earlier, John Richman agrees not to submit such an application until the expiration of the 60-month term. The Commissioner shall have all of the discretion set forth within General Laws chapter 255F section 4 , and the Division's regulation 209 CMR 41.00 et seq. in determining whether to issue a license to John Richman to conduct the licensed business, provided however, that any such application shall not be denied solely on the basis of the Temporary Order.
  5. 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 John Richman.
  6. This Consent Order shall become effective immediately upon the date of its issuance.
  7. In accordance with the terms of the Consent Agreement entered by John Richman and the Commissioner, John Richman has waived all rights of appeal that he may have relative to the Temporary Order and this Consent Order or any of its provisions.
  8. 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.
  9. 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 and the Consent Agreement.

BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS.

Dated at Boston, Massachusetts, this 3rd day of March, 2010

By: Steven L. Antonakes
Commissioner of Banks
Commonwealth of Massachusetts