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Consent Order

Consent Order Boston Common Mortgage, Inc.

Date: 06/21/2018
Organization: Division of Banks
Docket Number: 2018-002
Location: Worcester, MA

WHEREAS, BOSTON COMMON MORTGAGE, INC. (Boston Common Mortgage or the Corporation), a licensed mortgage broker 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 24th day of May, 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, Boston Common Mortgage  agrees to the issuance of this CONSENT ORDER (Consent Order) by the Commissioner of Banks (Commissioner);

WHEREAS, a compliance examination of Boston Common Mortgage was conducted pursuant to General Laws chapter 255E, section 8, as of September 12, 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 in the Commonwealth;

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

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

ORDER

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

1. Boston Common Mortgage shall infuse sufficient capital as necessary to establish an adjusted net worth of at least twenty-five thousand dollars ($25,000.00) and shall maintain an adjusted net worth of at least twenty-five thousand dollars ($25,000.00) at all times while the Massachusetts mortgage broker license is in effect.   

a) For the purposes of this Consent Order, the terms “capital” and “net worth” shall be defined in accordance with the Division’s regulation 209 CMR 42.02.

2. On the fifteenth (15th) day after the end of each month following the date of this Consent Order, Boston Common Mortgage shall furnish copies of all pages of bank statements for each account in the name of Boston Common Mortgage to the Division.

3. Boston Common Mortgage shall submit an engagement letter from a certified public accountant confirming that he or she will prepare audited or reviewed 2017 financial statements on behalf of the Corporation.

4. Boston Common Mortgage shall establish, implement, and maintain policies and procedures to ensure that the Corporation accurately compiles and maintains all financial statements, accounts, and related documentation in a manner that will allow the Division to assess the Corporation’s financial responsibility and fitness.

5. Boston Common Mortgage shall revise its anti-money laundering (AML) program to ensure that the program is appropriately tailored to the Corporations business operations and incorporates all required elements  set forth in the Financial Crimes Enforcement Network’s (FinCEN) regulation 31 CFR 1029.210.

a) Boston Common Mortgage shall fully implement its revised AML program and shall retain evidence of such implementation including, but not limited to:  evidence of appropriate on-going employee training; and copies of independent testing reports of the AML program.

6. Boston Common Mortgage shall establish, implement and maintain procedures to ensure that Mortgage Call Reports (MCR) are timely filed through the Nationwide Multi-State System and Registry (NMLS) and that such MCRs accurately reflect the Corporation’s loan volume in Massachusetts.  The Corporation shall further revise and correct the MCRs filed for 4th quarter of 2015 and 1st quarter of 2016.

7. Boston Common Mortgage shall submit payment of four thousand dollars ($4,000.00) to satisfy outstanding assessments that are due and owing to the Division.  The payment shall be satisfied as follows:

a) Two thousand dollars ($2,000.00) shall be due and payable immediately upon Boston Common Mortgage’s execution of the Consent Agreement;

b) A payment of one thousand dollars ($1,000.00) shall be due and payable upon the last day of each month, beginning with the month immediately following the effective date of this Consent Order, until the outstanding assessments set forth in this Section are satisfied in full; and

c) Boston Common Mortgage shall remit payment(s) pursuant to this Section of the Consent Order for the amount then due, payable to the “Commonwealth of Massachusetts,” to the Division of Banks, Attn: Mortgage Examination Unit, 1000 Washington Street, 10th Floor, Boston, Massachusetts 02118. 

8. Boston Common Mortgage shall address all matters requiring attention set forth in the Report within the time-frames contained therein.  Boston Common Mortgage shall also implement all corrective actions described in the Report that are not specifically addressed by this Consent Order.

a) Boston Common Mortgage 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.

b) On the thirtieth (30th) day after the end of each calendar quarter following the date of this Consent Order, Boston Common Mortgage shall furnish written progress reports to the Division via secure email to DOBProgressReport@state.ma.us.  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 Boston Common Mortgage, 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.

9. Nothing in this Consent Order shall be construed as permitting Boston Common Mortgage to violate any law, rule, regulation, or regulatory bulletin to which the Corporation is subject.

10. In consideration of the foregoing Consent Order, the Division agrees not to pursue formal measures, relative to this matter, to suspend or revoke Boston Common Mortgage’s mortgage broker license under Massachusetts General Laws chapter 255E, section 6, while this Consent Order is in effect, but subject to the provisions of Section 10 of this Consent Order.

11. 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.

12. In the event that Boston Common Mortgage fails to submit the payments set forth in the Consent Order in the amounts specified herein and in accordance with the applicable deadlines, the Division shall be authorized to submit a claim for such amounts against the mortgage broker bond maintained by Boston Common Mortgage pursuant to the Division’s regulation 209 CMR 42.05(2)(a).

13. This Consent Order shall become effective immediately upon the date of its issuance.

14. 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.

15. 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 Boston Common Mortgage.

BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS:

Dated at Boston, Massachusetts, this 21st day of June, 2018.

By:                                                                                                                 

Terence A. McGinnis

Commissioner of Banks

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