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Consent Order

Consent Order Kennan Ross Startzell

Date: 04/07/2011
Organization: Division of Banks
Docket Number: 2010-043-CO

Table of Contents


Suffolk, SS.

Docket No. 2010-043-CO


In the Matter of

Mortgage Loan Originator License No.:MLO41311

WHEREAS, KENNAN ROSS STARTZELL ("Kennan Startzell") a formerly licensed mortgage loan originator under Massachusetts General Laws chapter 255F, section 2, has been advised of his right to Notice and Hearing pursuant to Massachusetts General Laws chapter 30A, section 10, 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 April 7, 2011, whereby, solely for the purpose of settling this matter and without admitting any allegations or implications of fact or the existence of any violations of applicable state and federal statutes or rules, Kennan Startzell agrees to the issuance of this CONSENT ORDER ("Consent Order") by the Commissioner of Banks ("Commissioner");

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 Massachusetts General Laws chapter 255F, section 2 and the Division's regulations 209 CMR 41.00 et seq.;

WHEREAS, at all relevant times, Kennan Startzell has been engaged in the business of a mortgage broker and/or mortgage loan originator of mortgage loan applications relating to residential property in Massachusetts;

WHEREAS, based upon information and belief, from July 2003 to February 2007, Kennan Startzell was employed by, or associated with, East Coast Equity, LLC ("East Coast Equity" or the "Company"), a then-licensed mortgage broker in Massachusetts, to originate residential mortgage loan applications;

WHEREAS, during the interim of July 2003 through February 2007, Kennan Startzell was authorized to engage in mortgage broker activities in Massachusetts without maintaining his own mortgage broker license due to his status at the relevant time as employed by, or associated with, East Coast Equity pursuant to the applicable licensing exemption provisions set forth under General Laws chapter 255E, section 2;

WHEREAS, On or about November 25, 2008, pursuant to the authority granted under Massachusetts General Laws chapter 255E, section 8, the Division commenced an examination/inspection of the books, accounts, papers, records, and files maintained by East Coast Equity to evaluate the Company's compliance with the laws, regulations, and regulatory bulletins applicable to the conduct of a mortgage broker business in Massachusetts (the "examination/inspection").

WHEREAS, during the examination/inspection of East Coast Equity, the Division's examiners determined that Kennan Startzell, while employed by or associated with East Coast Equity, prepared mortgage loan applications on behalf of applicants for the purchase and/or refinance of various residential properties, as defined pursuant to Massachusetts General Laws chapter 255E, section 1, which included false and/or misleading representations of the applicants' income.

WHEREAS, The Division's Report of Examination/Inspection of East Coast Equity (the "Report"), presented the findings of the examination/inspection and alleged significant failures to comply with applicable state and federal laws, rules, regulations, and regulatory bulletins governing the conduct of those engaged in the business of a mortgage broker in Massachusetts;

WHEREAS, on or about January 14, 2010, based upon the findings of the examination/inspection, the Division issued an ORDER TO SHOW CAUSE AND NOTICE OF RIGHT TO A HEARING (the "Order and Notice"), Docket No. 2010-043, against Kennan Startzell;

WHEREAS, on or about February 2, 2010 Kennan Startzell, through counsel, filed a Response to the Order and Notice, whereby Kennan Startzell contested certain of the Division's findings as set forth in the Report and the Order and Notice. By his Response, Kennan Startzell further reserved the right to proceed to an administrative hearing in accordance with Massachusetts General Laws chapter 30A;

WHEREAS, on or about February 18, 2010, Kennan Startzell appeared at the Division's offices to review the relevant records obtained and/or derived in connection with the Division of Banks' examination of East Coast Equity's books and records, papers, records, and files;

WHEREAS, Kennan Startzell's Massachusetts mortgage loan originator license, MLO41311, expired without renewal as of January 1, 2010;


WHEREAS, the parties now seek to resolve by mutual agreement, the matters identified in the Order and Notice;

WHEREAS, without this Consent Order constituting an admission by Kennan Startzell of any allegations made or implied by the provisions of the Order and Notice; solely for the purpose of settlement of all alleged violations without protracted administrative proceedings and judicial review, Kennan Startzell hereby waives all rights to complete the hearing process relative to this proceeding and affirms that he is willing to take all necessary action as set forth in this Consent Order; and

WHEREAS, in recognition of the Division and Kennan Startzell having reached the following mutual agreement under this Consent Order to resolve the matters raised by the Order and Notice, the Commissioner has terminated the Order and Notice on this 7th day of April, 2011.



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

  1. Kennan Startzell will continue to refrain from taking a residential mortgage loan application, or offering or negotiating terms of a residential mortgage loan, or otherwise engaging in the mortgage loan originator business, as that term is defined under General Laws chapter 255F, section 1.
  2. Kennan Startzell will refrain from submitting an application to obtain a mortgage loan originator license, or any other license, from the Commissioner for a period of 36 months from January 1, 2010.
  3. To the extent that Kennan Startzell wishes to resume business as a mortgage loan originator at the expiration of the 36-month term as set forth above, Kennan Startzell shall be required to submit a completed application to obtain the relevant license from the Commissioner. The Commissioner shall have all of the discretion set forth within General Laws chapter 255F, section 4 and the Division's regulation 209 CMR 41.00 et seq. in determining whether to issue a license to Kennan Startzell to conduct the licensed business, provided however, that any such application shall not be denied on the basis of the Order and Notice.
  4. Kennan Startzell is prohibited from taking an ownership position in an entity licensed under General Laws chapter 255E and from participating, in any manner, in the responsibilities or duties of a control person of such an entity, during the above referenced 36-month term. For the purposes of this Consent Order, "control" shall be defined as the power, directly or indirectly, to direct the management or policies of a company, whether through ownership of
  5. The provisions of this Consent Order shall not limit, estop, or otherwise prevent any other state agency or department, from taking any other action affecting Kennan Startzell.
  6. This Consent Order shall become effective immediately upon the date of its issuance.
  7. In accordance with the terms of the Consent Agreement entered by Kennan Startzell and the Commissioner, Kennan Startzell has waived all rights of appeal that he may have relative to the Order and Notice and this Consent Order or any of its provisions.
  8. 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.
  9. This Consent Order and the Consent Agreement are the complete documents representing the resolution of this matter. There are no other agreements, promises, representations, or warranties other than those set forth in this Consent Order and the Consent Agreement.




Dated at Boston, Massachusetts, this 7th day of April, 2011


By: David J. Cotney
Commissioner of Banks