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Consent Order

Consent Order Universal Mortgage Group, LLC

Date: 03/14/2011
Organization: Division of Banks
Docket Number: 2010-329
Location: Boston, MA

Table of Contents


Suffolk, SS.

Docket No. 2010-329


In the Matter of
Boston, Massachusetts

Mortgage Broker License No. MB3794

WHEREAS, UNIVERSAL MORTGAGE GROUP, LLC, ("Universal Mortgage" or the "Company"), with its main business office located at 516 E 2 nd Street, Suite 3, Boston, Massachusetts, 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 14, 2011, whereby, solely for the purpose of settling this matter, Universal Mortgage 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 broker in Massachusetts pursuant to Massachusetts General Laws chapter 255E, section 2;

WHEREAS, Universal Mortgage is, and at all relevant times has been, a limited liability company conducting business in the Commonwealth of Massachusetts. Universal Mortgage's main office is located at 516 E 2 nd Street, Suite 3, Boston, Massachusetts;

WHEREAS, on July 28, 2010, pursuant to Massachusetts General Laws chapter 255E, section 8, the Division commenced an examination/inspection of the books, accounts, papers, records, and files maintained by Universal Mortgage to evaluate the Company's compliance with the laws, regulations, and regulatory bulletins applicable to the conduct of a mortgage broker business in Massachusetts (the "2010 examination/inspection");

WHEREAS, during the 2010 examination/inspection, the Division's examiners reviewed copies of all advertising related materials that had been sent to Massachusetts consumers. Based upon a review of information reflected in four solicitations ("Solicitations") sent by Universal Mortgages to Massachusetts consumers, the Commissioner issued a Temporary Order to Cease and Desist and Notice of Administrative Penalty ("Order"), Docket No. 2010-329 pursuant to General Laws chapter 255E, section (7)(b) and General Laws chapter 255E, section 11, the against Universal Mortgage on October 7, 2010;

WHEREAS, on or about October 26, 2010, Universal Mortgage filed a response to the Order with the Division, whereby the Company reserved its right to proceed to an administrative hearing in accordance with Massachusetts General Laws chapter 30A;

WHEREAS, on or about December 3, 2010 the Report of Examination/Inspection (the "Report") was issued pursuant to the Division's examination/inspection of Universal Mortgage, and the Report alleged non-compliance with applicable state and federal statutes, rules, and regulations governing the conduct of those engaged in the business of a mortgage broker in Massachusetts;

WHEREAS, Universal Mortgage opted not to renew its Massachusetts mortgage broker license for the calendar year 2011 and that such license expired as of December 31, 2010;

WHEREAS, in recognition of the Division and Universal Mortgage 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 14 th day of March, 2011; and

WHEREAS, the parties now seek to resolve by mutual agreement, the matters alleged in the Order and the Report.


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

1. Universal Mortgage agrees to submit a payment of five thousand dollars ($5,000.00) in satisfaction of an administrative penalty collected in consideration of Universal Mortgage's distribution of the solicitations referenced in the preamble of this Consent Order. The administrative penalty shall be satisfied as follows:

  1. Five hundred fifty five dollars and sixty cents ($555.60) shall be due and payable immediately upon execution of this Consent Order;
  2. A payment of five hundred fifty five dollars and fifty-five cents ($555.55) shall be due and payable by the 1st day of each subsequent month continuing for eight additional months until the penalty of five thousand dollars ($5,000.00) has been paid in full; and
  3. Universal Mortgage shall remit payment in the amounts indicated above, payable to the "Commonwealth of Massachusetts," to the Office of the Commissioner of Banks, 1000 Washington Street, 10 th Floor, Boston, MA 02118-6400. The Division shall remit the payment for deposit into the General Fund of the Commonwealth.

2. Universal Mortgage shall reimburse the two consumers identified in the Report for the amount collected as a broker fee and processing fee at settlement that had not been disclosed to the consumers, in writing, prior to loan closing. The Company shall submit evidence of the reimbursement issued pursuant to this Section of the Consent Order. Evidence of the reimbursement shall include the consumer's name, the date the loan closed, the check number, the amount of the reimbursement, and certified mail receipt to illustrate the consumer's receipt of the reimbursement.

3. Within thirty (30) days from the execution of the Consent Agreement, Universal Mortgage shall submit evidence to the Division of all reimbursements issued pursuant to Section 2 of this Consent Order. Evidence of the reimbursements shall include the consumers' names, the dates the loans closed, the check numbers, the amount of the reimbursements, and certified mail receipts to illustrate the consumers' receipt of the reimbursements.

4. Nothing in this Consent Order shall be construed as permitting Universal Mortgage to violate any law, rule, regulation, or regulatory bulletin to which Universal Mortgage is subject.

5. Failure to comply with the terms of this Consent Order, as determined by the Commissioner, shall constitute grounds for denial of any future license applications submitted by Universal Mortgage or its officers, directors, or control persons.

6. Universal Mortgage agrees that, in the event the Company fails to submit the payment set forth in this Consent Order in the amount specified herein and in accordance with the applicable deadline, the Division shall be authorized to submit a claim for such amount against the mortgage broker Massachusetts surety bond maintained by Universal Mortgage pursuant to the Division's regulation 209 CMR 42.06(2)(a).

7. This Consent Order shall become effective immediately upon the date of its issuance.

8. The provisions of this Consent Order shall be binding upon Universal Mortgage and its officers and directors, and their successors or assigns.

9. 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.

10. 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 Universal Mortgage.






Dated at Boston, Massachusetts, this 14th day of March, 2011


By: David J. Cotney
Commissioner of Banks