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Consent Order

Consent Order Custom Financial Mortgage Corporation

Date: 11/10/2015
Organization: Division of Banks
Docket Number: 2015-013
Location: Norwell, MA

Table of Contents


Suffolk, SS.

Docket No. 2015-013


In the Matter of

Norwell, Massachusetts

Mortgage Broker License No. MB1627

WHEREAS, CUSTOM FINANCIAL MORTGAGE CORPORATION, Norwell, Massachusetts, (Custom Financial 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 November 10, 2015, 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, Custom Financial agrees to the issuance of this CONSENT ORDER (Consent Order) by the Commissioner of Banks (Commissioner);

WHEREAS, an examination was conducted pursuant to General Laws chapter 255E, section 8, as of September 26, 2014 to assess the Corporation’s level of compliance with applicable Massachusetts and federal statutes and regulations
governing the conduct of those engaged in the business of a mortgage broker in the Commonwealth; and

WHEREAS, the Report of Examination (Report) issued pursuant to the Division’s examination of Custom Financial alleged substantial non-compliance with applicable state and federal statutes, rules, and regulations governing the conduct of those engaged in the business of a mortgage broker in Massachusetts.


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

  1. Custom Financial must establish, implement and maintain procedures to ensure that the Corporation maintains and uses all loan documents in the Corporation’s books and records in a manner sufficient to evidence compliance with applicable state and federal statutes and regulations, in accordance with the record keeping requirements set forth in Massachusetts General Laws, chapter 255E, section 8, and the Division’s regulations 209 CMR 42.09 and 209 CMR 48.00 et seq.  
    1. Custom Financial must establish and implement procedures to ensure that all loan files are properly maintained and that all loan documentation, including required disclosures, are retained for all loan applications received by Custom Financial, including applications which are withdrawn, denied, or funded by the lender, as required by the Division’s regulation 209 CMR 42.09.
    2. Custom Financial agrees to submit a payment in the amount of four thousand dollars ($4,000) in satisfaction of an administrative penalty collected in consideration of the Corporation’s failure to properly retain files as required pursuant to General Laws chapter 255E and the Division’s regulations 209 CMR 42.09 and 209 CMR 48.00 et seq.  Custom Financial must remit payment in full of the amount indicated above, payable to the “Commonwealth of Massachusetts,” with the executed copy of the Consent Agreement, to the Division of Banks, Attn:  Mortgage Broker Examination Unit, 1000 Washington Street, 10th Floor, Boston, Massachusetts 02118.
  1. Custom Financial must establish, implement, and maintain policies and procedures to ensure  that the Corporation does not accept any portion or percentage of fees charged for the rendering of a settlement service when no or nominal services were performed by the Corporation, in compliance with the Real Estate Settlement Procedures Act regulation  (Regulation X) 12 CFR 1024.14(c).
  2. Custom Financial must address all matters requiring attention set forth in the Report within the time frames contained therein.  Custom Financial must also implement all corrective actions described in the Report that are not specifically addressed by this Consent Order.
    1. Custom Financial must establish, implement, and maintain procedures and policies to ensure that all applicable personnel persons 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.
  1. On or before the thirtieth (30th) day after the end of each calendar quarter following the date of this Consent Order, Custom Financial must furnish written progress reports to the Division, which shall address and include the following:
    1. A description of the form, content, and manner of any actions taken to address each Section of this Consent Order and the results thereof; and
    2. Written findings prepared by Custom Financial detailing a review of management’s and staff members’ adherence to the policies, programs, and procedures adopted pursuant to this Consent Order and to applicable statutes, regulations, and rules, as well as a description of any operational changes implemented during such quarter which are intended to improve Custom Financial’s compliance condition in Massachusetts and the results thereof.
  1. The reporting requirement to the Division referenced in Section 4 of this Consent Order shall remain in effect and shall not be amended or rescinded without the prior written modification, termination, or suspension of the applicable provision of this Consent Order from the Commissioner.
  2. Nothing in this Consent Order shall be construed as permitting Custom Financial to violate any law, rule, regulation, or regulatory bulletin to which the Corporation is subject.
  3. In consideration of the foregoing Consent Order, the Division agrees not to pursue formal measures, relative to this matter, to suspend or revoke Custom Financial’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 8.
  4. 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.
  5. This Consent Order shall become effective immediately upon the date of its issuance.
  6. 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.
  7. Custom Financial agrees that, in the event that the Corporation fails to submit the payment set forth in this Consent Order in the amount specified herein and in accordance with the applicable deadlines, the Division shall be authorized to submit a claim for such amount against the mortgage broker Massachusetts surety bond maintained by Custom Financial pursuant to the Division’s regulations 209 CMR 42.06(2)(a).
  8. 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 Custom Financial.



Dated at Boston, Massachusetts, this 10th day of November, 2015

By: David J. Cotney
Commissioner of Banks
Commonwealth of Massachusetts