Consent Order  Home Point Financial Corporation

Date:	03/19/2018
Organization:	Division of Banks
Docket Number:	2017-0014
Location:	Ann Arbor, Michigan

WHEREAS, HOME POINT FINANCIAL CORPORATION (Home Point or the Corporation), a licensed 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 March 19, 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 lender, Home Point  agrees to the issuance of this CONSENT ORDER (Consent Order) by the Commissioner of Banks (Commissioner);

WHEREAS, a compliance examination of Home Point was conducted pursuant to General Laws chapter 255E, section 8, as of January 18, 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 lender in the Commonwealth;

WHEREAS, the Report of Examination (Report) issued pursuant to the Division’s  Examination, alleged substantial 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 lender in the Commonwealth; and

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

Consent Order

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

1. Home Point shall establish, implement, and maintain procedures to ensure compliance with the loan reporting requirements set forth in the Home Mortgage Disclosure Act (HMDA), 12 U.S.C. section 2801 et seq., as implemented by 12 C.F.R. Part 1003 (Regulation C).  Such procedures shall require that the Corporation implement internal controls to ensure that, for all HMDA reportable loan applications, Home Point accurately compiles and records all required data in the Corporation’s HMDA Loan Application Register  (LAR).
   a. Home Point shall review for accuracy the HMDA data collected for all Massachusetts residential mortgage loans originated during calendar years 2015 and 2016, and shall resubmit to the Federal Reserve Board the corrected information of all erroneous and/or incomplete data previously submitted on the LAR.
   b. Home Point shall submit to the Division a written report detailing the HMDA data that the Corporation resubmitted pursuant to Section 1(a) of this Consent Order.
   c. Home Point shall establish, implement, maintain, and periodically update internal controls operating policies and training procedures to ensure that all applicable personnel possess a comprehensive understanding of the HMDA reporting requirements under Regulation C.  Such training shall ensure the proper implementation and execution of the revised practices and procedures adopted by Home Point pursuant to this Section of the Consent Order.
    
2. Home Point shall establish, implement, and maintain appropriate policies and procedures for the monitoring and oversight of its settlement agents and/or closing attorneys to ensure that no duplicate discharge/release recording fees are collected from Massachusetts borrowers.
   a. Home Point shall reimburse the borrowers identified in the Report for the duplicate discharge/release fees that were collected, and shall provide evidence to the Division of the refunds paid to the borrowers.
   b. Home Point shall review all Massachusetts residential mortgage loan refinances closed since January 18, 2014 to identify transactions in which the borrower was charged duplicate discharge/release fees.  In those transactions where a duplicate fee was charged and no appropriate refunds were made by the Corporation’s closing attorney or settlement agent, the Corporation agrees to reimburse the affected borrowers for the duplicate fee.  The Corporation shall provide evidence to the Division of the refunds paid to the consumers in the manner described in the Report.
    
3. Home Point shall establish, implement and maintain procedures to ensure that the Corporation does not contract for, or impose, late charges that are in excess of the amount permitted under Massachusetts General Laws chapter 183, section 59.
   a. Home Point shall determine whether any late charges were collected  from the consumers referenced in the Report in excess of  three percent of the amount of principal and interest overdue, and shall reimburse all consumers for the amounts collected as late charges that were in excess of the amount allowed by Massachusetts General Laws chapter 183, section 59.  Evidence of any reimbursements shall be submitted to the Division in the manner described in the Report.
   b. Home Point shall conduct a review of all Massachusetts loans closed since January 18, 2014 to determine whether late charges were assessed by the Corporation or by the entities to whom the notes were sold, and shall reimburse all such consumers for the amounts collected as late charges that were in excess of the amount allowed by Massachusetts General Laws chapter 183, section 59. Evidence of any reimbursements shall be submitted to the Division in the manner described in the Report.
    
4. Home Point shall reimburse the consumers identified in the Report for the full amount required to cure the referenced “Know Before You Owe” tolerance violations.  Home Point shall provide evidence of the reimbursements to the Division, in the manner described in the Report.
    
5. Home Point shall address all matters requiring attention set forth in the Report within the time-frames contained therein.  Home Point shall also implement all corrective actions described in the Report that are not specifically addressed by this Consent Order.
   a. Home Point 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 Memorandum, Home Point shall furnish written progress reports to the Division via secure email to [e-mail].  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 Home Point, 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 Home Point 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 Home Point’s 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 Home Point.

BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS:

Dated at Boston, Massachusetts, this 19 day of March, 2018.

By:

 

Terence A. McGinnis

Commissioner of Banks

Commonwealth of Massachusetts

THIS CONSENT ORDER WAS TERMINATED ON SEPTEMBER 8, 2020