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Consent Order

Consent Order Proficio Mortgage Ventures

Date: 03/12/2015
Organization: Division of Banks
Docket Number: 2015-002
Location: Orlando, FL

Table of Contents


Suffolk, SS.

Docket No. 2015-002


In the Matter of

Orlando, Florida

Mortgage Lender License No. ML7840

WHEREAS, PROFICIO MORTGAGE VENTURES, LLC, Orlando, Florida, (Proficio Mortgage or the Company), 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 12, 2015, 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, Proficio Mortgage agrees to the issuance of this CONSENT ORDER (Consent Order) by the Commissioner of Banks (Commissioner); 

WHEREAS, an examination of Proficio Mortgage was conducted pursuant to General Laws chapter 255E, section 8, as of August 9, 2013 to assess the Company’s level of compliance with applicable Massachusetts and federal statutes, rules and regulations governing the conduct of those engaged in the business of a mortgage lender in the Commonwealth;

WHEREAS, the Report of Examination (the Report) issued pursuant to the Division’s examination of Proficio Mortgage alleged substantial non-compliance with applicable state and federal statutes, rules, and regulations governing the conduct of those engaged in the business of mortgage lender in the Commonwealth; and

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


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

  1. Proficio Mortgage must establish, implement, and maintain procedures to ensure that the Company does not make or offer any reverse mortgage loans on residential property in Massachusetts unless the Company obtains prior approval of the reverse mortgage program from the Division pursuant to Massachusetts General Laws chapter 167E, section 7.
    1. Proficio Mortgage agrees to submit a payment in the amount of sixty two thousand five hundred dollars ($62,500.00) in satisfaction of an administrative penalty collected in consideration of the Company making or offering reverse mortgage loans on residential property in Massachusetts without first obtaining the Division’s approval of the reverse mortgage program(s).  Proficio Mortgage agrees to remit payment in full of the amount indicated above, payable to the “Commonwealth of Massachusetts,” with the executed copy of the Consent Agreement, to the Division of Banks, Attn:  Mortgage Lender Examination Unit, 1000 Washington Street, 10th Floor, Boston, Massachusetts 02118.
  1. Proficio Mortgage must establish, implement, and maintain policies and procedures to ensure that the Company is in compliance with the Division’s regulation 209 CMR 53.00 et seq. regarding determination and documentation of a borrower’s interest when refinancing a home loan that was consummated within 60 months prior to the Company’s receipt of an application for a new home loan.  Such procedures shall ensure that the Company completes a worksheet or other document indicating how the Corporation determined that a refinance loan was in the borrower’s interest and such document shall not in any manner shift the burden to the borrower to determine and to demonstrate that the home loan is in the borrower’s interest. 
  2. Proficio Mortgage must address all matters requiring attention set forth in the Report within the time frames contained therein; and must also take all required corrective actions specified in the Report.
    1. Proficio Mortgage must establish, implement, and maintain procedures and policies to ensure that all applicable personnel receive adequate instruction and ongoing, periodic training to ensure proper implementation and execution of the revised practices and procedures implemented pursuant to this Consent Order.
  1. On the thirtieth (30th) day after the end of each calendar quarter following the date of this Consent Order, Proficio Mortgage must furnish written progress reports to the Division, which shall address and include the following:
    1. A description of the form, content, and manner of any actions taken to address each Section of this Consent Order and the results thereof; and
    2. Written findings prepared by Proficio Mortgage detailing a review of management’s and staff members’ adherence to the policies, programs, and procedures adopted pursuant to this Consent Order and to applicable statutes, regulations, and rules, as well as a description of any operational changes implemented during such quarter which are intended to improve Proficio Mortgage’s compliance condition in Massachusetts and the results thereof.
  1. The reporting requirement to the Division referenced in Section 4 of this Consent Order shall remain in effect and shall not be amended or rescinded without the prior written modification, termination, or suspension of the applicable provision of this Consent Order from the Commissioner.
  2. Proficio Mortgage agrees that, in the event that the Company fails to submit the payments set forth in this Consent Order in the amounts specified herein and in accordance with applicable deadlines, the Division shall be authorized to submit a claim for such amounts against the mortgage lender Massachusetts surety bond maintained by Proficio Mortgage pursuant to the Division’s regulation 209 CMR 42.03(2)(a).
  3. Nothing in this Consent Order shall be construed as permitting Proficio Mortgage to violate any law, rule, regulation, or regulatory bulletin to which the Company is subject.
  4. In consideration of the foregoing Consent Order, the Division agrees not to pursue formal measures, relative to this matter, to suspend or revoke Proficio Mortgage’s mortgage lender license under Massachusetts General Laws chapter 255E, section 6, while this Consent Order is in effect, but subject to the provisions of Section 9 of this Consent Order.
  5. Failure to comply with the terms of this Consent 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.
  6. This Consent Order shall become effective immediately upon the date of its issuance.
  7. The provisions of this Consent 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 Consent Order.
  8. 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 Proficio Mortgage.


Dated at Boston, Massachusetts, this 12th day of March, 2015

David J. Cotney
Commissioner of Banks
Commonwealth of Massachusetts