Date: | 03/09/2022 |
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Organization: | Division of Banks |
Docket Number: | 2021-003 |
Location: | Boston, Massachusetts |
WHEREAS, CrossCountry Mortgage, LLC. (“CrossCountry” or the “Company”), with its main office located at 6850 Miller Road, Brecksville, Ohio 44141, has been advised of its right to Notice and Hearing pursuant to Massachusetts General Laws (M.G.L.) 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 March 9, 2022, 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 lender and mortgage broker, CrossCountry 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 M.G.L. chapter 255E, section 2;
WHEREAS, the 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 M.G.L. chapter 255F, section 2;
WHEREAS, CrossCountry is, and at all relevant times, has been a foreign company conducting business in the Commonwealth of Massachusetts. The main office of CrossCountry is located at 6850 Miller Road, Brecksville, Ohio 44141;
WHEREAS, Andrew L. Marquis is, and at all relevant times, has been a mortgage loan originator conducting business on behalf of CrossCountry in the Commonwealth of Massachusetts. The main office of Andrew L. Marquis is located at 55 Cambridge Street, No. 102, Burlington, Massachusetts 01803;
WHEREAS, CrossCountry is licensed by the Commissioner as a mortgage lender and mortgage broker under M.G.L. chapter 255E, section 2. According to records maintained on file with the Division, the Commissioner initially issued mortgage lender license number ML3328 to CrossCountry to engage in the business of a mortgage lender on or about June 28, 2006. The Division’s records indicate that CrossCountry was subsequently issued mortgage company license number MC3029 which became effective on or about September 1, 2016, covering both mortgage broker and mortgage lender license types;
WHEREAS, Andrew L. Marquis is licensed by the Commissioner as a mortgage loan originator under M.G.L. chapter 255F, section 2. According to records maintained on file with the Division, the Commissioner initially issued mortgage loan originator license number MLO29861 to Andrew L. Marquis to engage in the business of a mortgage loan originator on or about May 29, 2008;
WHEREAS, M.G.L. chapter 93A, section 2(a) states, “Unfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce are hereby declared unlawful.”;
WHEREAS, regulation 940 Code of Massachusetts Regulations (C.M.R.) 8.06(1) states, “It is an unfair or deceptive act or practice for a mortgage broker or lender to make any representation or statement of fact in an advertisement if the representation or statement is false or misleading or has the tendency or capacity to be misleading, or if the mortgage broker or lender does not have sufficient information upon which a reasonable belief in the truth of the representation or statement could be based.”;
WHERAS, regulation 209 C.M.R. 42.12A(9) states, “It is a prohibited act or practice for a mortgage broker or mortgage lender to make false promises to influence, persuade, or induce a consumer to a sign a mortgage loan application or mortgage loan documents.”;
WHEREAS, regulation 209 C.M.R. 41.12 states, “A Licensee's Mortgage Loan Originator license number shall be clearly shown on all residential mortgage loan application forms, solicitations or advertisements, including, without limitation, business cards and websites.”;
WHEREAS, regulation 209 C.M.R. 42.12A(18) states: “It is a prohibited act or practice for a mortgage broker or a mortgage lender to engage in conduct prohibited under 209 C.M.R. 41.10.”;
WHEREAS, M.G.L. chapter 167, section 37 states, “No domestic or foreign corporation or individual, partnership or association shall conduct the business of a savings bank, co-operative bank, savings and loan association, credit union, trust company or banking company unless authorized to do so under the laws of this commonwealth nor shall any such corporation, individual, partnership or association, unless so authorized under said laws, make use of any sign at the place where its business is transacted having thereon any name or other words indicating that such place or office is the place or office of a savings bank, co-operative bank, savings and loan association, credit union, trust company or banking company or make use of or circulate any written or printed or partly written or partly printed paper whatever, having thereon any name or other words indicating that such business is that of a savings bank, co-operative bank, savings and loan association, credit union, trust company or banking company; nor shall any such corporation, individual partnership or association or any agent of any of these not having a charter to do business as a savings bank, co-operative bank, savings and loan association, credit union, trust company or banking company, unless authorized to do so under the laws of the commonwealth…”;WHEREAS, pursuant to M.G.L. chapter 255E, section 7(b), M.G.L. 255E, section 11, and M.G.L. 255F, section 11, the Commissioner issued a Temporary Order to Cease and Desist and Notice of Administrative Penalty ("Order"), Docket No. 2021-003 against CrossCountry and Andrew L. Marquis on November 30, 2022, based upon information reflected in a solicitation ("Solicitation") sent by CrossCountry and Andrew L. Marquis to Massachusetts consumers;
WHEREAS, according to CrossCountry and Andrew L. Marquis, Andrew L. Marquis was not involved in the Solicitation nor consulted regarding the substance of the Solicitation, and did not approve of or consent to the distribution of the Solicitation;
WHEREAS, according to CrossCountry and Andrew L. Marquis, the Solicitation was mistakenly mailed to Massachusetts consumers from CrossCountry’s main office location in Brecksville, Ohio;
WHEREAS, according to CrossCountry and Andrew L. Marquis, CrossCountry voluntarily ceased mailing the Solicitation within approximately two weeks of when the Solicitation was first distributed and a month prior to the issuance of the Order;
WHEREAS, according to CrossCountry and Andrew L. Marquis, CrossCountry took additional corrective action, including providing additional training to marketing personnel and instituting enhancements in CrossCountry’s marketing procedures to prevent solicitations from being distributed without the compliance department’s approval;
WHEREAS, in an effort to resolve the Division’s concerns, CrossCountry voluntarily offered to waive or reimburse its underwriting fee for any consumer that received the Solicitation and applied for a mortgage loan with the Company;
WHEREAS, in recognition of the Division and CrossCountry 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 9th day of March 2022; and
WHEREAS, the parties now seek to resolve by mutual agreement, the matters identified in the Order.