offered by
Consent Agreement

Consent Agreement MiLend, Inc.

Date: 11/20/2018
Organization: Division of Banks
Docket Number: 2018-004
Location: Atlanta, Georgia

WHEREAS, MILEND, INC.,  (MiLend or the Corporation), a licensed mortgage broker and mortgage lender under Massachusetts General Laws chapter 255E, section 2 has been advised of its right to Notice and Hearing pursuant to General Laws chapter 255E, section 7(a), 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 November 20, 2018, whereby, solely for the purpose of settling this matter, and without admitting any allegations or implications of fact or the existence of any violation of state or federal laws and regulations governing the conduct and operation of a mortgage broker and mortgage lender, MiLend agrees to the issuance of this CONSENT ORDER (Consent Order) by the Commissioner of Banks (Commissioner);

WHEREAS, a compliance examination and Mortgage Lender Community Investment (CRA) examination of MiLend were conducted pursuant to General Laws chapter 255E, section 8, as of May 10, 2017 to assess the Corporation’s level of compliance with applicable Massachusetts and federal statutes, rules and regulations governing the conduct of those engaged in the business of a mortgage broker and mortgage lender in the Commonwealth;

WHEREAS, the Report of Examination (Report) issued pursuant to the Division’s  Examination, alleged non-compliance with applicable Massachusetts and federal statutes, rules, and regulations governing the conduct and licensing of those engaged in the business of a mortgage broker and  mortgage lender in the Commonwealth; and

WHEREAS, the parties now seek to resolve by mutual agreement, the matters identified in the Report;

 

Table of Contents

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

  1. MiLend shall implement policies and procedures designed to strengthen its compliance management program, and shall allocate resources as necessary to maintain an effective compliance management system that is appropriate for the Corporation’s business operations. 
  2. MiLend shall establish, implement, and maintain policies and procedures to ensure that charges to borrowers do not exceed the applicable tolerance thresholds.  If any charges at settlement exceed the applicable tolerances, MiLend shall refund the excess to affected borrowers within the required time frames.
    (a) 
    MiLend shall reimburse the borrowers identified in the Report for the full amounts required to cure the tolerance violations.  MiLend shall provide evidence of the reimbursements to the Division in the manner described in the Report.
  3. MiLend shall establish, implement, and maintain procedures to ensure that all advertisements are reviewed prior to dissemination or publication to ensure such advertisements do not contain any representations or statements that could be considered false, misleading, or have the tendency to be misleading.
  4. MiLend shall address all matters requiring attention set forth in the Report within the time-frames contained therein.  MiLend shall also implement all corrective actions described in the Report that are not specifically addressed by this Consent Order.
    (a) 
    MiLend shall establish, implement, and maintain procedures and policies to ensure that all applicable personnel receive adequate instruction and ongoing, periodic training to ensure proper implementation and execution of the revised practices and procedures implemented pursuant to this Consent Order.
  5. On the thirtieth (30th) day after the end of each calendar quarter following the date of this Memorandum, MiLend shall furnish written progress reports to the Division via secure email to DOBProgressReport@mass.gov.  Such progress reports shall detail the form, content, and manner of any actions taken to address each section of this Consent Order, and describe, in detail, any other consumer compliance initiatives instituted during the calendar quarter to improve the compliance position of MiLend, and the results thereof.  Each progress report submitted to the Division pursuant to this Section of the Consent Order shall be reviewed and signed by a duly authorized officer of the Corporation.
  6. Nothing in this Consent Order shall be construed as permitting MiLend to violate any law, rule, regulation, or regulatory bulletin to which the Corporation is subject.
  7. In consideration of the foregoing Consent Order, the Division agrees not to pursue formal measures, relative to this matter, to suspend or revoke MiLend’s mortgage broker or mortgage lender license under Massachusetts General Laws chapter 255E, section 6, while this Consent Order is in effect, but subject to the provisions of Section 8 of this Consent Order.
  8. Failure to comply with the terms of this Consent Order shall constitute grounds for license suspension and/or revocation, or other formal regulatory action pursuant to applicable provisions of the General Laws of the Commonwealth of Massachusetts.
  9. This Consent Order shall become effective immediately upon the date of its issuance.
  10. The provisions of this Consent Order shall remain effective and enforceable except to the extent that, and until such time as the Commissioner or a court of competent jurisdiction modifies, terminates, suspends, or sets aside any provision of this Consent Order.
  11. This Consent Order and the Consent Agreement are the complete documents representing the resolution of this matter.  There are no other agreements between the Division and MiLend.

By order and direction of the Commissioner of Banks

Dated at Boston, Massachusetts, this 20th day of November, 2018.

By:
Terence A. McGinnis
Commissioner of Banks
Commonwealth of Massachusetts

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