Consent Order  Intercontinental Capital Group, LLC

Date:	11/30/2011
Organization:	Division of Banks
Docket Number:	2011-055
Location:	New York, NY

Intercontinental Capital Group, LLC, New York, NY - Consent Order

COMMONWEALTH OF MASSACHUSETTS

Suffolk, SS.

COMMISSIONER OF BANKS
MORTGAGE LENDER
LICENSING
Docket No. 2011-055

CONSENT ORDER

In the Matter of
INTERCONTINENTAL CAPITAL GROUP, INC.
New York, New York

Mortgage Lender License Nos. ML60134 et al.

WHEREAS, INTERCONTINENTAL CAPITAL GROUP, INC., New York, New York ("Intercontinental Capital" or the "Corporation"), a licensed mortgage lender under Massachusetts General Laws chapter 255E, section 2, has 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 30, 2011, 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, Intercontinental Capital agrees to the issuance of this CONSENT ORDER ("Consent Order") by the Commissioner of Banks ("Commissioner");

WHEREAS, an examination/inspection of Intercontinental Capital was conducted pursuant to General Laws chapter 255E, section 8, as of February 7, 2011 to assess the Corporation’s level of compliance with applicable Massachusetts statutes and the Division’s regulations governing the conduct of those engaged in the business of a mortgage lender in the Commonwealth;

WHEREAS, the Report of Examination/Inspection (the "Report") issued pursuant to the Division’s examination/inspection of Intercontinental Capital 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 lender in Massachusetts; 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 Intercontinental Capital, and stipulate and agree as follows:

1. Intercontinental Capital shall establish, implement and maintain procedures to ensure that all mortgage loan originators with whom the Corporation conducts business are duly licensed as mortgage loan originators under Massachusetts General Laws chapter 255F, and properly sponsored through the Nationwide Mortgage Licensing System by Intercontinental Capital.
   1. Intercontinental Capital agrees to submit a payment totaling one hundred twelve thousand dollars ($112,000.00) in satisfaction of an administrative penalty collected in consideration of the Division’s findings alleging that the Corporation conducted mortgage business in Massachusetts with and through unlicensed and/or non-sponsored mortgage loan originators. The sum of the administrative penalty representing the combination of a eighty four thousand dollars ($84,000) penalty assessed against Intercontinental Capital and a penalty, in aggregate, of twenty eight thousand dollars ($28,000.00) assessed against the MLO Class Members which Intercontinental Capital agrees to satisfy on behalf of the MLO Class Members. The administrative penalty shall be satisfied as follows:
      1. Twenty eight thousand dollars ($28,000.00) shall be due and payable immediately upon the execution of this Consent Order; and
      2. A payment of ten thousand, five hundred dollars ($10,500.00) shall be due and payable upon the last day of each calendar month, beginning with the calendar month ending February 28, 2012, until the administrative penalty set forth in Paragraph 2(a) is satisfied in full.
   2. Intercontinental Capital shall 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 Office of the Commissioner of Banks, Attn: Mortgage Lender Examination Unit, 1000 Washington Street, 10th Floor, Boston, Massachusetts 02118.
2. Intercontinental Capital shall establish, implement and maintain procedures to ensure that all applicants whose residential mortgage loan application is denied receive a Mortgage Review Board Disclosure Form notifying them that they may appeal such denial to the review board in accordance with Massachusetts General Laws chapter 167, section 14A. For each consumer loan file, a completed copy of the Mortgage Review Board Disclosure Form shall be retained in the Corporation’s books and records as evidence of compliance.
3. Intercontinental Capital shall establish, implement, and maintain procedures to ensure that the Corporation refrains from providing consumers with any disclosure which, pursuant to the applicable statute, regulation, or regulatory bulletin, is intended to be issued exclusively by the mortgage broker in the residential mortgage loan transaction. Compliance with this Section of the Consent Order shall require that the Corporation refrain from providing consumers with the Loan Origination and Compensation Agreement; as such document is intended to be issued exclusively by the mortgage broker in the residential mortgage loan transaction.
4. Intercontinental Capital shall establish, implement, and maintain procedures to ensure that all consumers receive a Notice of Privacy Policies and Practices in accordance with, and in the form required by, the Federal Trade Commission’s Regulation 16 CFR 313. For each consumer loan file, a copy of the Notice of Privacy Policies and Practices shall be retained in the Corporation’s books and records as evidence of compliance.
5. Intercontinental Capital shall establish, implement, and maintain procedures to ensure that the Corporation files all quarterly reports on a timely basis pursuant to the Division’s regulation 209 CMR 42.09(4). It is understood that beginning with the first calendar quarter of 2011, the Nationwide Mortgage Licensing System Mortgage Call Report ("Call Report") will replace the Massachusetts quarterly report. The quarterly reporting requirement will be satisfied by completing and submitting the Call Report within prescribed timeframes.
6. Intercontinental Capital shall comply with all laws and regulations applicable to its conducting the business of a mortgage lender, including, but not limited to, Massachusetts General Laws chapters 255E and 255F, and the Division’s regulations 209 CMR 41.00 et seq. and 209 CMR 42.00 et seq. Such obligations shall necessarily include the duty to address and correct, within twenty (20) days of receipt of the Report, all violations and areas of concern addressed in the Report.
   1. Within twenty (20) days of Intercontinental Capital’s receipt of the Report, the Corporation shall submit to the Commissioner a written response that addresses each of the violations and areas of concern specified in the Report. The written response shall describe the revised policies and procedures adopted by Intercontinental Capital to implement all corrective actions set forth in: (i) the "Examiner’s Comments and Conclusions" section of the Report and (ii) the provisions of this Consent Order.
   2. Within thirty days of the effective date of this Consent Order, Intercontinental Capital shall establish, implement, and maintain quality control standards which provide for a loan review process to assess the Corporation’s compliance with: (i) the statutes, rules, regulations, regulatory bulletins, and other relevant provisions of law applicable to those engaged in the business of a mortgage lender in Massachusetts, and (ii) the provisions of this Consent Order; and
   3. Intercontinental Capital shall establish, implement, and maintain procedures and policies to ensure that all applicable staff 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.
7. On the thirtieth day after the end of each calendar quarter following the date of this Consent Order, Intercontinental Capital shall 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 Intercontinental Capital detailing a review of management’s and staff persons’ 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 Intercontinental Capital’s compliance condition in Massachusetts, and the results thereof.
8. The reporting requirement to the Division referenced in Section 7 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.
9. Nothing in this Consent Order shall be construed as permitting Intercontinental Capital to violate any law, rule, regulation, or regulatory bulletin to which Intercontinental Capital 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 Intercontinental Capital’s mortgage lender license(s) under Massachusetts General Laws chapter 255E, section 6, while this Consent Order is in effect.
11. Intercontinental Capital agrees that, in the event that the Corporation fails to submit the payments set forth in this 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 against the mortgage lender Massachusetts surety bond maintained by Intercontinental Capital pursuant to the Division’s regulations 209 CMR 42.03(2)(a).
12. Failure to comply with the terms of this Consent Order shall constitute grounds for license suspension and/or revocation, or other formal regulatory actions pursuant to applicable provisions of the General Laws of the Commonwealth of Massachusetts.
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, 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.
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 Intercontinental Capital.

BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS.

Dated at Boston, Massachusetts, this 30th day of November, 2011

By:
David J. Cotney
Commissioner of Banks

THIS CONSENT ORDER WAS TERMINATED ON JULY 11, 2016