Consent Order  National Lending Corporation

Date:	01/11/2007
Organization:	Division of Banks
Docket Number:	2006-019-CO
Location:	Houston, TX

National Lending Corporation, Houston TX - Consent Order

COMMONWEALTH OF MASSACHUSETTS

Suffolk, SS.
 

COMMISSIONER OF BANKS
MORTGAGE BROKER LICENSING
Docket No. 2006-019-CO

CONSENT ORDER

In the Matter of

NATIONAL LENDING CORPORATION
Houston, Texas

Mortgage Broker License No. MB3245, et al.

WHEREAS, National Lending Corporation, Houston, Texas, a licensed mortgage broker under Massachusetts General Laws chapter 255E, section 2 ("National Lending") 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 __________________________, 2007, 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 broker, National Lending agrees to the issuance of this CONSENT ORDER ("ORDER") by the Commissioner of Banks ("Commissioner");

WHEREAS, pursuant to General Laws chapter 255E, section (7)(b), the Commissioner issued a Findings of Fact and Temporary Order to Cease and Desist, Docket No. 2006-019 (the "TEMPORARY ORDER"), against National Lending on September 8, 2006, as a result of National Lending's alleged failure to demonstrate and maintain the character, reputation, integrity, and general fitness that would warrant the belief that its mortgage broker business will be operated honestly, fairly, and soundly in the public interest in violation of Massachusetts General laws chapter 255E, section 4 and the Division's regulation 209 CMR 42.06(2)(c); and

WHEREAS, the parties now seek to resolve by mutual agreement, the matters identified in the TEMPORARY ORDER.

ORDER

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

1. National Lending, and its officers, directors, employees, successors and assigns, and those persons in active participation with it, directly or indirectly, acting individually or through any corporate or other entity (collectively referred to as "National Lending" or the "Corporation") shall be prohibited from engaging in the mortgage broker and mortgage lender business, as those terms are defined under Massachusetts General Laws chapter 255E, section 1, for a period of twenty-four (24) months, or as otherwise provided herein, this period to commence upon the effective date of this ORDER.
2. Notwithstanding the prohibition contained in paragraph 1 hereof, and notwithstanding any of the other provisions hereof, National Lending shall on each successive four month anniversary of the date of the issuance of this ORDER have the right to meet with representatives of the Division to demonstrate to the Division steps taken by National Lending in this jurisdiction and in other jurisdictions that may demonstrate to the Division and/or the Commissioner that a lesser period of time would be appropriate for prohibiting National Lending from engaging in the mortgage broker and mortgage lending business as those terms are defined under Massachusetts General Laws, Chapter 255E, Section 1. At each of these meetings, if requested by National Lending, the Division shall consider the information provided to them by National Lending and shall be in their sole and absolute discretion to determine whether it would then be appropriate to consider a shortening of the suspension period and permit National Lending to submit an application to the Division to resume business as either a mortgage broker or mortgage lender.
3. Within ten (10) days of the effective date of this ORDER, National Lending will surrender each of its Massachusetts mortgage broker licenses, license number(s): MB3245, MB3893, MB3926, MB4118, MB4225, and MB4254, by returning each of the original license certificates to the Division at One South Station, 3rd Floor, Boston, Massachusetts 02110.
4. To the extent that National Lending wishes to resume business as either a mortgage broker or mortgage lender at the expiration of the 24-month term as set forth above, or as otherwise provided for herein National Lending shall be required to obtain the relevant license to do so from the Commissioner. The Commissioner will be assumed to have all of the discretion set forth within General Laws chapter 255E, section 4 in determining whether to issue a license to National Lending to conduct the licensed business provided, however, that any such application submitted more than 24 months after the effective date of this ORDER shall not be denied on the basis of the TEMPORARY ORDER.
5. 1. Upon execution of the CONSENT AGREEMENT by the Corporation, National Lending will submit to the Division a written withdrawal of the four branch license applications that the Corporation currently has pending with the Division.
6. National Lending has provided the Division with written certification that the Corporation has successfully notified each of the mortgage lender(s) or financial institution(s) to which the Corporation was placing Massachusetts residential mortgage loans prior to the issuance of the TEMPORARY ORDER that the Corporation has suspended all mortgage broker activity in Massachusetts. This notification provided the mortgage lender or financial institution with accurate contact information of a designated individual both at National Lending and at National Lending's attorney's office that the mortgage lender or financial institution may contact if any mortgage broker activity is attempted to be conducted through the lender or financial institution by an individual or entity purporting to operate on behalf of National Lending.
7. 1. Upon execution of this ORDER, National Lending shall take all reasonable steps to prevent any former officers, directors, employees, independent contractors, agents, successors and assigns, and those persons in active participation with it, directly or indirectly, from acting under the apparent authority of National Lending to conduct unlicensed mortgage broker activity in Massachusetts. In addition to the lender notification provisions of the preceding paragraph, this subsection of the ORDER shall require National Lending to take appropriate steps to limit or terminate any online application submission authorities which are necessary to effect compliance with this ORDER and shall immediately require National Lending to notify the Division if any mortgage lender or financial institution should contact National Lending regarding any attempted prohibited lending or brokering activity.
8. The provisions of this ORDER shall not limit, estop, or otherwise prevent the Division, or any state agency or department, from taking any other action affecting National Lending, its officers, directors, employees, successors and assigns, and those persons in active participation with it, directly or indirectly, acting individually or through any corporate or other entity.
9. This ORDER shall become effective immediately upon the date of its issuance.
10. The provisions of this ORDER shall be binding upon National Lending, its officers, directors, employees, successors and assigns, and those persons in active participation with it, directly or indirectly, acting individually or through any corporate or other entity.
11. In accordance with the terms of the CONSENT AGREEMENT entered by National Lending and the Commissioner, National Lending has waived all rights of appeal that it may have.
12. The provisions of this ORDER shall remain effective and enforceable except to the extent that, and until such time as, any provisions of this ORDER shall have been modified, terminated, suspended, or set aside by the Commissioner or upon an order of a court of competent jurisdiction.
13. This 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 ORDER.

BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS:

Dated at Boston, Massachusetts, this 11th day of January 2007.

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