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Consent Order

Consent Order Advanced Mortgage Services, LLC

Date: 12/13/2010
Organization: Division of Banks
Docket Number: 2010-336
Location: Norwell, MA

COMMONWEALTH OF MASSACHUSETTS

Suffolk, SS.

COMMISSIONER OF BANKS
MORTGAGE LENDER AND
MORTGAGE BROKER
LICENSING
Docket No. 2010-336

CONSENT ORDER

In the Matter of
ADVANCED MORTGAGE SERVICES, LLC
Norwell, Massachusetts

Mortgage Company License No: MC3702

WHEREAS ADVANCED MORTGAGE SERVICES, LLC, ("Advanced Mortgage" or the "Company"), with its main business office located at 335 Washington Street, Norwell, Massachusetts, 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 December 13, 2010, whereby, solely for the purpose of settling this matter, Advanced Mortgage 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 and entities engaged in the business of a mortgage lender and mortgage broker in Massachusetts pursuant to Massachusetts General Laws chapter 255E, section 2;

WHEREAS, Advanced Mortgage is, and at all relevant times, has been a limited liability company conducting business in the Commonwealth of Massachusetts. Advanced Mortgage's main office is located at 335 Washington Street in Norwell, Massachusetts;

WHEREAS, pursuant to General Laws chapter 255E, section (7)(b) and General Laws chapter 255E, section 11, the Commissioner issued a Temporary Order to Cease and Desist and Notice of Administrative Penalty ("Order"), Docket No. 2010-336 against Advanced Mortgage on October 29, 2010, based upon information reflected in two print advertisements ("Advertisements") published by Advanced Mortgage in local publications;

WHEREAS, on or about November 4, 2010, Advanced Mortgage filed a response to the Order with the Division, whereby the Company addressed the Division's findings and alleged violations of law contained in the Order. By its response, Advanced Mortgage further reserved its right to proceed to an administrative hearing in accordance with Massachusetts General Laws chapter 30A;

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

WHEREAS, without this Consent Order constituting an admission by Advanced Mortgage of any allegations made or implied by the provisions of the Order; solely for the purpose of settlement of all alleged violations without protracted administrative proceedings and judicial review, Advanced Mortgage hereby waives its right to complete the hearing process relative to this proceeding and affirms that it is willing to take all necessary action as set forth in this Consent Order; and

WHEREAS, in recognition of the Division and Advanced Mortgage having reached the following mutual agreement under this Consent Order to fully resolve the matters raised by the Order, the Commissioner has terminated the Order on this 13th day of December, 2010.

ORDER

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

  1. Advanced Mortgage shall revise its advertising practices and procedures to ensure that all solicitations and advertising materials used by the Company do not contain any representations or statements that could be considered false, misleading, or have the tendency or capacity to be misleading.
    1. Advanced Mortgage shall take all necessary steps to ensure that the Advertisements or any similar advertisement is not published or distributed to consumers in Massachusetts;
    2. Advanced Mortgage shall implement, establish and maintain a system of internal controls to monitor the Company's compliance with the laws and regulations applicable to advertising practices including, but not limited to Massachusetts General Laws chapter 140D, the Division's regulations 209 CMR 32.00 et seq.and 209 CMR 42.12A; and the Office of the Attorney General's regulation 940 CMR 8.04;
    3. Advanced Mortgage shall establish, implement and maintain policies and procedures to ensure that all advertisements are thoroughly reviewed by senior management prior to publication or distribution to consumers. Such procedures shall include a review of the criteria utilized to generate any advertisement or mailing list to ensure that targeted advertisements or solicitations are appropriate for the consumers to whom they are distributed;
    4. Advanced Mortgage shall review and revise, as necessary, the Company's policies and procedures to ensure that individuals performing on behalf of the Company neither act, nor represent themselves, as a government entity; and
    5. A copy of each advertisement used by the Advanced Mortgage shall be retained in the Company's books and records and shall be made available to the Division at its examinations/inspections of the Advanced Mortgage.
  2. Advanced Mortgage agrees to submit a payment of seven thousand five hundred dollars ($7,500.00) in satisfaction of an administrative penalty collected in consideration of Advanced Mortgage's distribution of the adverstisements referenced in the preamble of this Consent Order. Advanced Mortgage shall remit payment in full of the amount indicated above, payable to the "Commonwealth of Massachusetts," with the executed copy of this Consent Order, to the Office of the Commissioner of Banks, 1000 Washington Street, 10th Floor, Boston, Massachusetts 02118-6400. The Division shall remit the payment for deposit into the General Fund of the Commonwealth.
  3. Nothing in this Consent Order shall be construed as permitting Advanced Mortgage to violate any law, rule, regulation, or regulatory bulletin to which Advanced Mortgage is subject.
  4. In consideration of the foregoing Consent Order, the Division agrees not to pursue formal measures, relative to this matter, to suspend or revoke Advanced Mortgage's mortgage lender and mortgage broker licenses under General Laws chapter 255E, section 6, while this Consent Order is in effect.
  5. Failure to comply with the terms of this Consent Order shall constitute grounds for license suspension and/or revocation pursuant to applicable provisions of the General Laws of the Commonwealth of Massachusetts.
  6. This Consent Order shall become effective immediately upon the date of its issuance.
  7. The provisions of this Consent Order shall be binding upon Advanced Mortgage and its officers and directors, and their successors or assigns.
  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 between the Division and Advanced Mortgage.

BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS.

Dated at Boston, Massachusetts, this 13th day of December, 2010

David J. Cotney
Acting Commissioner of Banks
Commonwealth of Massachusetts

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