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WHEREAS, MORTGAGE SECURITY, INC. ("Mortgage Security" or the "Corporation") a formerly licensed mortgage broker and mortgage lender 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 June 16, 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, Mortgage Security 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 those engaged in the business of a mortgage broker and mortgage lender in Massachusetts pursuant to Massachusetts General Laws chapter 255E, section 2 and the Division's regulations 209 CMR 42.00 et seq.;
WHEREAS, on July 21, 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 Mortgage Security to evaluate the Corporation's compliance with the laws, regulations, and regulatory bulletins applicable to the conduct of a mortgage lender and mortgage broker business in Massachusetts (the "examination/inspection");
WHEREAS, the Division's Report of Examination/Inspection (the "Report"), which was issued to Mortgage Security on or about November 12, 2009, presented the findings of the examination/inspection, which was finalized through subsequent visitation(s), 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 lender and mortgage broker in Massachusetts;
WHEREAS, on November 12, 2009, based upon the findings as set forth in the Report, the Division issued an ORDER TO SHOW CAUSE AND NOTICE OF RIGHT TO A HEARING (the "Order and Notice"), Docket No. 2009-125, against Mortgage Security;
WHEREAS, Mortgage Security voluntarily ceased originating Massachusetts residential mortgage loans on or before September 30, 2009;
WHEREAS, on or about November 30, 2009, Mortgage Security, through counsel, filed a Response to the Order and Notice, whereby Mortgage Security contested certain of the Division's findings as set forth in the Report and the Order and Notice. By the Response, Mortgage Security further reserved the right to proceed to an administrative hearing in accordance with Massachusetts General Laws chapter 30A;
WHEREAS, Mortgage Security's mortgage lender and broker licenses expired without renewal on December 31, 2010;
WHEREAS, on March 16, 2011, Mortgage Security appeared at the Division's offices for an informal conference to continue the ongoing discussions of the matters raised by the Order and Notice;
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 Mortgage Security 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, Mortgage Security hereby waives all rights 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; and
WHEREAS, in recognition of the Division and Mortgage Security 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 16th day of June, 2011.
NOW COME the parties in the above-captioned matter, the Division and Mortgage Security, stipulate and agree as follows:
BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS.
Dated at Boston, Massachusetts, this 16th day of June, 2011
David J. Cotney
Commissioner of Banks
Commonwealth of Massachusetts