The State Organization Index provides an alphabetical listing of government organizations, including commissions, departments, and bureaus.
Top-requested sites to log in to services provided by the state
WHEREAS, TERRACE MORTGAGE COMPANY d/b/a BRIGHTPATH MORTGAGE (Terrace Mortgage or the Corporation), a licensed mortgage lender and mortgage broker under Massachusetts General Laws chapter 255E, 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 November 19, 2013, whereby, solely for the purpose of settling this matter, Terrace Mortgage agrees to the issuance of this CONSENT ORDER (Consent Order) by the Commissioner of Banks (Commissioner);
WHEREAS, the Division of Banks (Division) 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, the Division has jurisdiction over the licensing and regulation of persons engaged in the business of a mortgage loan originator in Massachusetts pursuant to Massachusetts General Laws chapter 255F, section 2;
WHEREAS, Terrace Mortgage is licensed by the Commissioner as a mortgage lender and mortgage broker under Massachusetts General Laws chapter 255E, section 2. According to records maintained on file with the Division and in the Nationwide Multi-State Licensing System & Registry (NMLS), the Commissioner initially issued a mortgage lender license to Terrace Mortgage to engage in the business of a mortgage lender on or about February 17, 2006 with license number ML2975. The Division’s records indicate that the Commissioner issued a mortgage broker license to Terrace Mortgage to engage in the business of a mortgage broker on or about January 16, 2013 and, on that date, the Corporation was issued a mortgage lender and mortgage broker license with license number MC1710;
WHEREAS, on November 11, 2013, Terrace Mortgage filed through the NMLS financial quarterly financial statements for the third quarter of 2013. The financial statements indicated a net worth of ($1,765,651.88);
WHEREAS, on November 15, 2013, Terrace Mortgage filed through the NMLS audited year-end financial statements for the period ending May 31, 2013 which identified a net worth of ($1,657,566);
WHEREAS, The auditor’s notes accompanying the audited year-end financial statements indicated that during the year ended May 31, 2013, a warehouse line of credit facility notified the Corporation that it was in technical default on this line of credit, which
prevented the Corporation from accessing the line;
WHEREAS, the Division’s regulations 209 CMR 42.03(2)(a) and 209 CMR 42.08A require that mortgage lenders demonstrate and maintain a net worth of not less than $200,000 as a requirement for continued licensure in the Commonwealth;
WHEREAS, failure to maintain minimum net worth may constitute grounds for license suspension or revocation under M.G.L. c. 255E, section 6;
WHEREAS, the Division has serious concerns that Terrace Mortgage’s negative net worth position has jeopardized the Corporation’s access to warehouse lines of credit and/or other funding sources and, therefore, may negatively impact the Corporation’s ability to continue as a going concern and to fund mortgage loans for Massachusetts borrowers;
WHEREAS, on November 15, 2013, the Corporation participated in an informal teleconference with representatives of the Division to discuss the Division’s concerns regarding this matter;
WHEREAS, on November 15, 2013, the Corporation submitted a letter to the Division via e-mail in which the Corporation agreed that Terrace Mortgage should surrender its Massachusetts licenses due to its current financial condition;
WHEREAS, the parties now seek to resolve by mutual agreement, the issues identified above.
NOW COME the parties in the above-captioned matter, the Division and Terrace Mortgage and stipulate and agree as follows:
BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS.
Dated at Boston, Massachusetts, this 19th day of November, 2013
David J. Cotney
Commissioner of Banks
Commonwealth of Massachusetts