Related to:
Consent Order

Consent Order Liberty Home Equity Solutions

Date: 07/06/2016
Organization: Division of Banks
Docket Number: 2016-006
Location: Rancho Cordova, CA

Liberty Home Equity Solutions, Inc. - Consent Order


Suffolk, SS.
Docket No. 2016-006


In the Matter of

Rancho Cordova, California
Mortgage Lender License No. ML3313

WHEREAS, LIBERTY HOME EQUITY SOLUTIONS, INC., f/k/a GENWORTH FINANCIAL HOME EQUITY ACCESS, INC., Rancho Cordova, California (Liberty Home 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 July 5, 2016, 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, Liberty Home agrees to the issuance of this CONSENT ORDER (Consent Order) by the Commissioner of Banks (Commissioner);

WHEREAS, on April 4, 2012 the Commissioner and Liberty Home entered into a STIPULATION AND CONSENT TO THE ISSUANCE OF A CONSENT ORDER, Docket No. 2011-093 (2012 Consent Order) for the purpose of settling the matters raised during a 2011 Examination of Liberty Home’s books and records;

WHEREAS, an examination of Liberty Home was conducted pursuant to General Laws chapter 255E, section 8, as of July 22, 2015 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, as well as to assess the Corporation’s compliance with the 2012 Consent Order;

WHEREAS, the Division determined that Liberty Home complied with the majority of the provisions of the 2012 Consent Order; the Report of Examination (the Report) issued pursuant to the Division’s examination of Liberty Home 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 the Commonwealth;

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

WHEREAS, by mutual agreement of the Corporation and the Division, the 2012 Consent Order is hereby superseded and replaced by this Consent Order.


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

  1. Liberty Home must establish, implement and maintain policies and procedures to ensure that loan proceeds are timely disbursed to borrowers in accordance with applicable Massachusetts laws and regulations.
    1. Liberty Home must conduct a review of all Massachusetts loans closed since July 1, 2012 and identify any cases where borrowers were charged per diem interest for the time between the required funding date and the date the funds were disbursed to the borrowers and shall reimburse all borrowers the full amount of interest collected during that period. Liberty Home must submit to the Division evidence of such reimbursements in the manner described in the Report.
  1. Liberty Home must 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.
    1. Liberty Home must conduct a review of all Massachusetts residential mortgage loan refinances closed since July 1, 2012 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 must reimburse the affected borrowers for the duplicate fee. The Corporation will submit a description of the methodology used to complete the portfolio review and will provide evidence of the refunds paid to the consumers in the manner described in the Report.
  1. Liberty Home must address all matters requiring attention set forth in the Report within the time frames contained therein. Liberty Home must also implement all corrective actions described in the Report that are not specifically addressed by this Consent Order.
    1. Liberty Home must 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.
  1. On or before the thirtieth (30th) day after the end of each calendar quarter following the date of this Consent Order, Liberty Home 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 Liberty Home 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 Liberty Home’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 Liberty Home 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 Liberty Home’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.
  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. 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 Liberty Home.


Dated at Boston, Massachusetts, this 6th day of July, 2016.


David J. Cotney
Commissioner of Banks


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