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Consent Order

Consent Order Plaza Home Mortgage, Inc.

Date: 03/15/2011
Organization: Division of Banks
Docket Number: 2010-236
Location: San Diego, CA

Table of Contents


Suffolk, SS.

Docket No. 2010-236


In the Matter of
San Diego, California

Mortgage Lender License No(s). ML3292 and ML3293


WHEREAS, PLAZA HOME MORTGAGE, INC., San Diego, California ("Plaza Home" or the "Corporation"), a licensed mortgage lender under Massachusetts General Laws chapter 255E, section 2, 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 March 15, 2011, 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 lender, Plaza Home agrees to the issuance of this CONSENT ORDER ("Order") by the Commissioner of Banks ("Commissioner");

WHEREAS, a Mortgage Lender Community Investment examination of Plaza Home was conducted pursuant to General Laws chapter 255E, section 8, as of November 23, 2009, to assess Plaza Home's level of compliance with applicable Massachusetts statutes and the Division's regulations governing the conduct of those engaged in the business of a mortgage lender in the Commonwealth; and

WHEREAS, the Report of Examination (the "Report") issued pursuant to the Division's examination of Plaza Home as of November 23, 2009 alleged certain significant violations. ORDER NOW COME the parties in the above-captioned matter, the Division and Plaza Home, and stipulate and agree as follows:


  1. Plaza Home shall establish, implement and maintain policies and procedures to ensure that Plaza Home maintains all books, records, and accounts in accordance with the requirements of Massachusetts General Laws chapter 255E and the Division's regulation 209 CMR 42.09 and 209 CMR 48.00 and the Equal Credit Opportunity Act ("ECOA"), 15 U.S.C. section 1601 et seq., as implemented by Regulations of the Board of Governors of the Federal Reserve System, 12 C.F.R. Part 202 ("Regulation B"). The procedures implemented to address this Section of the Order shall necessarily ensure that Plaza Home retains its books and records in a manner which will allow the Commissioner to determine whether Plaza Home is complying with all applicable state and federal laws and regulations governing the conduct of mortgage lenders.
  2. Plaza Home agrees to submit a payment of sixty thousand dollars ($60,000.00) in satisfaction of administrative penalties collected in consideration of the Corporation's alleged failure to maintain books and records in accordance with the Division's regulations 209 CMR 42.09 and 209 CMR 48.03 and Regulation B. Plaza Home shall remit payment in full of the administrative penalty referenced in this Section of the Order, payable to the "Commonwealth of Massachusetts," with the executed copy of the Consent Agreement to the Office of the Commissioner of Banks, 1000 Washington Street, Boston, Massachusetts 02118. The Division shall remit the payment for deposit into the General Fund of the Commonwealth.
  3. Plaza Home shall establish, implement and maintain procedures to ensure compliance with the provisions of the requirements set forth in Regulation B. Such procedures shall necessarily require that the Corporation implement internal controls to ensure that Plaza Home collects and records the proper Government Monitoring information on all applications or properly records that the information was not provided.
  4. Plaza Home shall comply with all laws and regulations applicable to conducting the business of a mortgage lender, including, but not limited to, Massachusetts General Laws chapters 255E and 255F, and the Division's regulations 209 CMR 41.00 et seq. and 209 CMR 42.00 et seq. Such obligations shall necessarily include the duty to address and correct, within thirty (30) days of receipt of the Report, all violations and areas of concern addressed in the Report.
  5. Within thirty (30) days of execution of the Consent Agreement by Plaza Home and the Division, the Corporation shall submit to the Commissioner a written response that addresses each of the violations and areas of concern specified in the Report conducted as of November 23, 2009. The written response shall describe the revised policies and procedures adopted by Plaza Home to implement all corrective actions set forth in: (i) the "Significant Violations" section of the Report; and (ii) the provisions of this Order;

    1. Within thirty (30) days of the effective date of this Order, Plaza Home shall establish, implement, and maintain quality control standards which provide for a loan review process to assess the Corporation's compliance with: (a) the statutes, rules, regulations, regulatory bulletins, and other relevant provisions of law applicable to those engaged in the business of a mortgage lender in Massachusetts, and (b) the provisions of this Order. Such quality control standards shall be designed to prevent the recurrence of the violations addressed in the Report; and|
    2. Plaza Home shall establish, implement, and maintain procedures and policies to ensure that all applicable staff persons receive adequate instruction and ongoing, periodic training to ensure proper implementation and execution of the revised practices and procedures implemented pursuant to this Order.
  6. Plaza Home's pending application for approval of the Corporation's reverse mortgage program, application A09416, and its pending application for a mortgage broker license which was received by the Division on May 17, 2010 shall be stayed pending the satisfactory completion of the compliance examination by the Division for the period following the period of the last compliance examination conducted as of September 29, 2008, which shall be promptly undertaken and completed. Said stay shall be reconsidered upon the Division's determination that the Corporation is in a satisfactory compliance position after the Division's examination of Plaza Home's business as a mortgage lender.
  7. Nothing in this Order shall be construed as permitting Plaza Home to violate any law, rule, regulation, or regulatory bulletin to which the Corporation is subject.
  8. In consideration of the foregoing Order, the Division agrees not to pursue formal measures, relative to this matter, to suspend or revoke Plaza Home's mortgage lender licenses under Massachusetts General Laws chapter 255E, section 6, while this Order is in effect.
  9. Failure to comply with the terms of this Order shall constitute grounds for license suspension and/or revocation, or other formal regulatory action pursuant to applicable provisions of the General Laws of the Commonwealth of Massachusetts.
  10. This Order shall become effective immediately upon the date of its issuance.
  11. The provisions of this Order shall remain effective and enforceable except to the extent that, and until such time as the Commissioner or a court of competent jurisdiction modifies, terminates, suspends, or sets aside any provision of this Order.
  12. This Order and the Consent Agreement are the complete documents representing the resolution of this matter. There are no other agreements between the Division and Plaza Home.




Dated at Boston, Massachusetts, this 15th day of March, 2011


By: David J. Cotney
Commissioner of Banks


Order was terminated on August 6, 2012.