offered by
Consent Order

Consent Order NFM, Inc.

Date: 09/09/2010
Organization: Division of Banks
Docket Number: 2010-248-CO
Location: Linthicum, MD

This Consent Order has been terminated, effective February 10, 2013.

Table of Contents


Suffolk, SS.

Docket No. 2010-248-CO


In the Matter of
Linthicum, Maryland

Mortgage Company License No(s). MC3591, MC5001 and MC5380

WHEREAS NFM, INC., ("NFM" or the "Corporation"), with its main business office located at 505 Progress Drive, Suite 100, Linthicum, Maryland, 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 September 9, 2010, whereby, solely for the purpose of settling this matter, NFM 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, NFM is, and at all relevant times, has been a foreign corporation conducting business in the Commonwealth of Massachusetts. NFM's main office is located at 505 Progress Drive, Suite 100, Linthicum, Maryland;

WHEREAS, pursuant to General Laws chapter 255E, section (7)(b) and General Laws chapter 255E, section 11 the Commissioner issued a Temporary Order to Cease and Desist and Notice of Administrative Penalty ("Order"), Docket No. 2010-248 against NFM on July 20, 2010, based upon information reflected in a consumer solicitation (the "Solicitation") received by Massachusetts consumers;

WHEREAS, on or about July 23, 2010 NFM filed a response to the Order with the Division whereby the Corporation addressed the Division's findings and alleged violations of law contained in the Order. By its response, NFM further reserved its right to proceed to an administrative hearing in accordance with Massachusetts General Laws chapter 30A;

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

WHEREAS, without this Consent Order constituting an admission by NFM of any allegations made or implied by the provisions of the Order; solely for the purpose of settlement of all alleged violations without protracted administrative proceedings and judicial review, NFM 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; and

WHEREAS, in recognition of the Division and NFM having reached the following mutual agreement under this Consent Order to fully resolve the matters raised by the Order, the Commissioner has terminated the Order on this 9th day of September, 2010.


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

  1. NFM shall revise its advertising practices and procedures to ensure that all solicitations and advertising materials used by the Corporation do not contain any representations or statements that could be considered false, misleading, or have the tendency or capacity to be misleading.
    1. NFM shall take all necessary steps to ensure that the Solicitation or any similar solicitation is not published or distributed to consumers in Massachusetts;
    2. NFM shall implement, establish and maintain a system of internal controls to monitor the Corporation's compliance with the laws and regulations applicable to advertising practices including, but not limited to Massachusetts General Laws chapter 140D, the Division's regulations 209 CMR 32.00 et seq. and 209 CMR 42.12A; and the Office of the Attorney General's regulation 940 CMR 8.04;
    3. NFM shall establish, implement and maintain policies and procedures to ensure that all advertisements are thoroughly reviewed by senior management prior to publication or distribution to consumers. Such procedures shall include a review of the criteria utilized to generate mailing lists to ensure that targeted solicitations are appropriate for the consumers to whom such solicitations are distributed;
    4. NFM shall review and revise, as necessary, the Corporation's policies and procedures to ensure that individuals performing on behalf of the Corporation neither act, nor represent themselves, as a government entity; and
    5. A copy of each advertisement used by the NFM shall be retained in the Corporation's books and records and shall be made available to the Division at its examinations/inspections of the NFM.
  2. NFM shall continue to process seven mortgage loan applications currently pending in the Corporation's pipeline as identified by NFM in a report issued to the Division on August 11, 2010. (Loan numbers: 21810072061, 21810073686, 21810071994, 21810073140, 21810072703, 21810069467 and 21810060535). NFM shall continue to process the aforementioned loans under the following terms:
    1. NFM shall receive no compensation, directly or indirectly, for all loan fees, points, or similar fees for the processing of the above referenced mortgage loan transactions. Specifically, "compensation" shall include, but not be limited to, fees paid by a borrower at closing, including loan origination fees and/or underwriting fees.
    2. NFM shall provide to the Division for review, a HUD Settlement Statement or Statement of Denial upon settlement or denial of each of the mortgage loans. Each package shall be forwarded to the Division for review within ten (10) days of settlement.
  3. NFM shall issue a written clarification notice to the consumers referenced in Paragraph 2 of this Consent Order. Such notice shall make reference to the Solicitation and include, but not be limited to, the following information:
    1. Notification that NFM is not affiliated with a government agency; and
    2. Notification that the Corporation will not be receiving any compensation, in the consumer's mortgage transaction.
  4. NFM agrees to submit a payment of five thousand dollars ($5,000.00) in satisfaction of an administrative penalty collected in consideration of NFM's distribution of the solicitation referenced in the preamble of this Consent Order. NFM shall remit payment in full of the amount indicated above, payable to the "Commonwealth of Massachusetts," with the executed copy of this Consent Order, to the Office of the Commissioner of Banks, 1000 Washington Street, 10th Floor, Boston, Massachusetts 02118-6400. The Division shall remit the payment for deposit into the General Fund of the Commonwealth.
  5. Nothing in this Consent Order shall be construed as permitting NFM to violate any law, rule, regulation, or regulatory bulletin to which NFM is subject.
  6. In consideration of the foregoing Consent Order, the Division agrees not to pursue formal measures, relative to this matter, to suspend or revoke NFM's mortgage lender and mortgage broker licenses under General Laws chapter 255E, section 6, while this Consent Order is in effect.
  7. Failure to comply with the terms of this Consent Order shall constitute grounds for license suspension and/or revocation pursuant to applicable provisions of the General Laws of the Commonwealth of Massachusetts.
  8. This Consent Order shall become effective immediately upon the date of its issuance.
  9. The provisions of this Consent Order shall be binding upon NFM and its officers and directors, and their successors or assigns.
  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 between the Division and NFM.



Dated at Boston, Massachusetts, this 9th day of September, 2010

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