Consent Order  Lucner Charles, dba Mass Financial Mortgage Company

Date:	06/26/2008
Organization:	Division of Banks
Docket Number:	2007-033-CO
Location:	Mattapan, MA

Lucner Charles, d/b/a Mass Financial Mortgage Company, Mattapan, MA - Consent Order

COMMONWEALTH OF MASSACHUSETTS

Suffolk, SS.

COMMISSIONER OF BANKS
MORTGAGE BROKER
LICENSING
Docket No. 2007-033-CO

CONSENT ORDER

In the Matter of
LUCNER CHARLES d/b/a MASS FINANCIAL
MORTGAGE COMPANY
Mattapan, Massachusetts

Mortgage Broker License No(s). MB2239 et al.

WHEREAS, LUCNER CHARLES d/b/a MASS FINANCIAL MORTGAGE COMPANY, Mattapan, Massachusetts ("Lucner Charles" or "Mass Financial Mortgage"), a licensed mortgage broker under Massachusetts General Laws chapter 255E, 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 June 26, 2008, whereby, solely for the purpose of settling this matter, Lucner Charles agrees to the issuance of this CONSENT ORDER ("Consent Order") by the Commissioner of Banks ("Commissioner").

WHEREAS, The Division of Banks ("Division"), through the Commissioner, has jurisdiction over the licensing and regulation of persons and entities engaged in the business of a mortgage broker in Massachusetts pursuant to Massachusetts General Laws chapter 255E, section 2.

WHEREAS, Lucner Charles, at all relevant times, has been an individual engaged in the business of a mortgage broker in the Commonwealth with an office located at 1601 Blue Hill Avenue, Mattapan, Massachusetts which Mr. Charles represents was maintained through December 2006.

WHEREAS, Lucner Charles is licensed by the Commissioner as a mortgage broker under Massachusetts General Laws chapter 255E, section 2. According to records maintained on file with the Division, the Commissioner initially issued a mortgage broker license number MB2239 to Lucner Charles to engage in the business of a mortgage broker at 1601 Blue Hill Avenue, Mattapan, Massachusetts on or about April 18, 2001. According to records maintained on file with the Division, Lucner Charles maintains an additional license for an office location at 100 Main Street, Brockton, Massachusetts with license number MB3309, which was issued on or about February 13, 2004.

WHEREAS, on March 30, 2007, the Commissioner and Lucner Charles entered into a Memorandum of Understanding ("Memorandum") for the purpose of settling the matters raised by the findings of the Division's Report of Examination/Inspection on Consumer Compliance which was prepared as of January 30, 2004 as well as the administrative proceedings which resulted thereafter.

WHEREAS, on October 15, 2007, pursuant to the authority granted under Massachusetts

General Laws chapter 255E, section 8, the Division commenced an examination/inspection (the "2007 examination/inspection") of the books, accounts, papers, records, and files maintained by Lucner Charles to evaluate his compliance with: (1) the laws, regulations, and regulatory bulletins applicable to the conduct of the mortgage broker business in Massachusetts and (2) the provisions of the Memorandum.

WHEREAS, on or about November 5, 2007, the Division's Report of Examination/Inspection prepared as of October 15, 2007 (the "Report"), was issued to Lucner Charles and presented findings which alleged significant failures to comply with: (1) 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 and (2) the provisions of the Memorandum.

WHEREAS, on or about November 5, 2007, based upon the findings of the 2007 examination/inspection, the Division issued a FINDINGS OF FACT AND TEMPORARY ORDER TO CEASE AND DESIST AND ORDER TO SHOW CAUSE AND NOTICE OF RIGHT TO A HEARING ("2007 Order and Notice"), Docket No. 2007-033, against Lucner Charles. The 2007 Order and Notice alleged certain Charges and violations of law against Lucner Charles, including, but not limited to, the following:

1. Substantial non-compliance with the terms of a Memorandum of Understanding;
2. Failure to disclose criminal charges in a license renewal application; and
3. Alteration of financial statements submitted to the Division in conjunction with Lucner Charles' year-end 2006 annual report.

WHEREAS, on or about December 17, 2007, Lucner Charles filed a Response to the 2007 Order and Notice with the Division whereby he contested certain of the Division's findings and alleged violations of law contained in the 2007 Order and Notice. By his Response, Lucner Charles further reserved his right to proceed to an administrative hearing in accordance with Massachusetts General Laws chapter 30A.

WHEREAS, after extensive negotiations and solely for the purpose of settlement of all alleged violations and Charges which the parties now dispute without protracted administrative proceedings and judicial review, Lucner Charles hereby waives his right 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.

WHEREAS, the parties now seek to resolve by mutual agreement, the matters identified in the 2007 Order and Notice.

ORDER

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

1. Immediately upon the execution of this Consent Order, Lucner Charles will refrain from originating or accepting any additional Massachusetts residential mortgage loan applications, or otherwise engaging in the mortgage broker business, as that term is defined under General Laws chapter 255E, section 1.
2. Immediately upon the execution of this Consent Order, Lucner Charles will surrender his Massachusetts mortgage broker licenses MB2239 and MB3309 by returning the original license certificates to the Division at One South Station, 3rd Floor, Boston, Massachusetts 02110.
3. Lucner Charles will refrain from submitting an application to obtain a license from the Commissioner for a period of forty-eight (48) months from the effective date of the 2007 Order and Notice. The provisions of this Paragraph shall also prohibit Lucner Charles from accepting employment to engage in any mortgage lender or mortgage broker business on behalf of another entity or individual licensed by the Division to conduct such business during the 48-month period.
4. To the extent that Lucner Charles wishes to resume business as a mortgage broker at the expiration of the 48-month term as set forth above, Lucner Charles shall be required to submit a completed application to obtain the relevant license from the Commissioner. Unless the Commissioner, in his sole discretion, agrees to accept such an application earlier, Lucner Charles agrees not to submit such an application until the expiration of the 48-month term. The Commissioner shall have all of the discretion set forth within General Laws chapter 255E, section 4 and the Division's regulation 209 CMR 42.00 et seq. in determining whether to issue a license to Lucner Charles to conduct the licensed business, provided however, that any such application shall not be denied solely on the basis of the 2007 Order and Notice.
5. Lucner Charles shall reimburse the consumer(s) identified in the Report for the amounts collected as loan fees, points, or similar fees at settlement that had not been disclosed to the consumer, in writing, prior to loan closing. The amount of such reimbursement shall equal the difference between the actual charges assessed to the consumer and the amount disclosed in writing for such fee(s) prior to loan closing as set forth in the Report.
6. Within thirty (30) days of the effective date of this Consent Order, Lucner Charles shall submit to the Division sufficient evidence to illustrate the consumer's receipt of the reimbursement set forth in Paragraph 5 of this Consent Order, including, but not limited to, the consumer's name, the check number(s), and the amount of the reimbursement.
7. Within thirty (30) days of receipt of the relevant invoice from the Division, Lucner Charles shall submit payment in full of the amount owed for the costs of the Division's 2007 examination/inspection. The payment shall be made payable to the "Commonwealth of Massachusetts," and mailed to the Office of the Commissioner of Banks, Attn: Compliance and Community Affairs Unit, One South Station, 3 ^rd Floor, Boston, Massachusetts 02110.
8. 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 Lucner Charles.
9. This Consent Order shall become effective immediately upon the date of its issuance.
10. In accordance with the terms of the Consent Agreement entered by Lucner Charles and the Commissioner, Lucner Charles has waived all rights of appeal that he may have.
11. 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.
12. 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, which replaces and supersedes all prior agreements between Lucner Charles and the Commissioner.

BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS:

Dated at Boston, Massachusetts, this 26th day of June, 2008.

By: Steven L. Antonakes
Commissioner of Banks
Commonwealth of Massachusetts