Related to:
Consent Order

Consent Order Mortgage Dreams, LLC

Date: 11/09/2012
Organization: Division of Banks
Docket Number: 2011-083-CO
Location: Charlton, MA

COMMONWEALTH OF MASSACHUSETTS

Suffolk, SS.

COMMISSIONER OF BANKS
MORTGAGE LENDER AND
MORTGAGE BROKER
LICENSING
Docket No. 2011-083-CO

CONSENT ORDER

In the Matter of
MORTGAGE DREAMS, LLC
Charlton, Massachusetts

Mortgage Broker License No. MB1511

WHEREAS, MORTGAGE DREAMS, LLC, Charlton, Massachusetts ("Mortgage Dreams" or the "Company"), a licensed mortgage broker under Massachusetts General Laws chapter 255E, section 2, has been advised of its 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 November 9th, 2012, whereby, solely for the purpose of settling this matter, Mortgage Dreams 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 lender and mortgage broker in Massachusetts pursuant to Massachusetts General Laws chapter 255E, section 2;

WHEREAS, Mortgage Dreams, at all relevant times, has been a Massachusetts Company doing business in the Commonwealth with its main office located at 451 Worcester Road, Charlton, Massachusetts;

WHEREAS, on July 18, 2011 pursuant to Massachusetts General Laws chapter 255E, section 8, the Division commenced an examination/inspection of the books, accounts, papers, records, and files maintained by Mortgage Dreams to evaluate the Company’s compliance with Massachusetts and federal statutes and regulations governing the conduct of the mortgage broker business in Massachusetts (the "2011 examination/inspection");

WHEREAS, the Division's Report of Examination/Inspection on Consumer Compliance (the "Report"), which was issued to Mortgage Dreams on September 6, 2011, presented the findings of the 2011 examination/inspection and alleged failures to comply with applicable state and federal statutes, rules, and regulations governing the conduct of those engaged in the business of a mortgage broker in Massachusetts;

WHEREAS, on or about September 6, 2011, based upon the findings of the 2011 examination/inspection, the Division issued a FINDINGS OF FACT AND TEMPORARY ORDER TO CEASE AND DESIST (the "Temporary Order"), Docket No. 2011-083, against Mortgage Dreams;

WHEREAS, on or about September 19, 2011 Mortgage Dreams filed a request to reserve its right to proceed to an administrative hearing in accordance with Massachusetts General Laws chapter 30A;

WHEREAS, on or about November 4, 2011 Mortgage Dreams filed a response to the Temporary Order;

WHEREAS, Mortgage Dreams, its officers, directors or managers or their successors or assigns expressly deny and dispute any and all alleged failure to comply with applicable state and federal statutes, rules, and regulations governing the conduct of those engaged in the business of a mortgage broker in Massachusetts as set forth in the Temporary Order;

WHEREAS, the parties now seek to resolve by mutual agreement, and without admission of liability, any and all matters arising out of the Temporary Order;

WHEREAS after extensive negotiations and without this Consent Order constituting an admission by Mortgage Dreams, its officers, directors, or managers or their successors or assigns of any allegations made or implied by the provisions of the Temporary Order, solely for the purpose of settlement and compromise of all alleged violations in the Temporary Order, without protracted administrative proceedings and judicial review, Mortgage Dreams hereby waives its right to complete the hearing process relative to this proceeding and affirms that it is willing to take all necessary action as set forth in this Consent Order;

WHEREAS, the parties now seek to resolve by mutual agreement, any and all matters arising out of the Temporary Order; and

WHEREAS, in recognition of the Division and Mortgage Dreams having reached the following mutual agreement under this Consent Order to resolve all matters arising out of the Temporary Order, the Commissioner has terminated the Temporary Order on this 9th day of November, 2012, and shall have no further force or effect.

ORDER

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

  1. Immediately upon the execution of this Consent Order, Mortgage Dreams and any and all officers, directors, or managers or their successors or assigns operating on behalf of Mortgage Dreams, will cease engaging in the activity of a mortgage lender, or mortgage broker in Massachusetts, as those terms are defined under General Laws chapter 255E, section 1 and General Laws chapter 255F, section 1, respectively.
  2. Immediately upon the execution of this Consent Agreement, the Division will update Mortgage Dreams’ licensing status in Massachusetts in the Nationwide Mortgage Licensing System (NMLS) to "Terminated- Surrendered/Cancelled."
  3. Mortgage Dreams will refrain from submitting an application to obtain a mortgage lender and/or mortgage broker license from the Commissioner until January 1, 2014.
  4. To the extent that Mortgage Dreams or any of its officers or directors, or managers or their successors or assigns, wish to resume business as a mortgage lender and/or mortgage broker under General Laws chapter 255E after January 1, 2014 Mortgage Dreams and/or such individual, as applicable, shall be required to submit a completed application to obtain the relevant license(s) from the Commissioner. The provisions of this Section shall necessarily prohibit Mortgage Dreams’ officers, directors or managers or their successors or assigns from taking an ownership position in and from participating, in any manner, in the responsibilities or duties of a control person of an entity licensed under General Laws chapter 255E until January 1, 2014. For the purposes of this Consent Order, "control" shall be defined as the power, directly or indirectly, to oversee the management or policies of a company, whether through ownership of securities, by contract, or otherwise. Unless the Commissioner, in his sole discretion, agrees to accept such an application earlier, Mortgage Dreams agrees not to submit such an application until January 1, 2014. 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 Mortgage Dreams to conduct the licensed business, provided however, that any such application shall not be denied solely on the basis of the Temporary Order.
  5. The provisions of this Consent Order shall not limit, estop, or otherwise prevent any other state agency or department, other than the Division or the Commissioner or his designee, from taking any other action affecting Mortgage Dreams and/or any of its officers, directors, or managers.
  6. This Consent Order shall become effective immediately upon the date of its issuance.
  7. The provisions of this Consent Order shall be binding upon Mortgage Dreams and its directors, officers, managers, and their successors and assigns.
  8. In accordance with the terms of the Consent Agreement entered by Mortgage Dreams and the Commissioner, Mortgage Dreams has waived all rights of appeal that it may have relative to the Temporary Order.
  9. Nothing in this Consent Order shall be deemed to be an admission of Mortgage Dreams or its officers, directors or managers or their successors or assigns of any allegations or implications of fact or the existence of any violations of applicable state or federal rules, statutes, or regulations, including without limitation, any such allegations set forth in the Temporary Order which Mortgage Dreams expressly denies.
  10. 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.
  11. 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 Mortgage Dreams and the Commissioner.

BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS:

Dated at Boston, Massachusetts, this 9th day of November, 2012

By:
David J. Cotney
Commissioner of Banks
Commonwealth of Massachusetts

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