offered by

Order Lenox Financial Mortgage, LLC

Date: 04/11/2011
Organization: Division of Banks
Docket Number: 2010-371
Location: Atlanta, GA

Table of Contents

Lenox Financial Mortgage, LLC, Atlanta, GA - Joint Stipulation and Order


Suffolk, SS.

Docket No. 2010-371


LENOX FINANCIAL MORTGAGE, LLC, Petitioner Atlanta, Georgia v. DIVISION OF BANKS, Respondent

Mortgage Broker License No. MB3345

Petitioner Lenox Financial Mortgage, LLC ("Lenox Financial") and Respondent Division of Banks ("Division") hereby submit this Joint Stipulation and proposed Order for the Administrative Hearing Officer's approval. WHEREAS, on October 15, 2010, the Division issued a Temporary Order to Cease and Desist, Docket No. 2010-371 (the "Temporary Order") against Lenox Financial based, in part, upon the findings of the Division's examination/inspection of Lenox Financial, which commenced on September 25, 2008 (the "2008 examination/inspection"); WHEREAS, Lenox Financial submitted a request for a hearing by letter dated October 27, 2010; WHEREAS, a status conference was held regarding this matter on February 24, 2010; WHEREAS, for the purpose of settlement of all alleged violations and charges set forth in the Temporary Order without admitting guilt or wrongdoing, Lenox Financial hereby waives its right to complete the formal adjudicative hearing process relative to this matter and waives further appeals to any court in regard to the terms and conditions of this joint stipulation. Stipulation NOW COME the parties in the above-captioned matter, Lenox Financial and the Division, and stipulate and agree as follows:


  1. Lenox Financial agrees to voluntarily surrender its Massachusetts mortgage broker license MB3345. Upon the effective date of this Joint Stipulation, the Division will effect the surrender of the license by updating Lenox Financial's status in Massachusetts through the Nationwide Mortgage Licensing System (NMLS) to "Surrendered."
  2. Lenox Financial shall reimburse the consumers identified in the "Table of Reimbursements Owed to Consumers by Lenox Financial Mortgage, LLC" ("Table of Reimbursements") for all fees set forth in the Table of Reimbursements (attached as Exhibit A).

    1. Lenox Financial has reimbursed the consumers identified in the Table of Reimbursements by mailing a check to each consumer for the appropriate amount(s) as set forth in the Table of Reimbursements. Lenox Financial has sent the reimbursement checks by certified mail to each consumer using the address listed in Lenox Financial's records. If the checks are undeliverable, Lenox Financial shall make a good faith effort to locate updated address information.
    2. Lenox Financial has submitted to the Division of Banks evidence of all reimbursements issued pursuant to this Section of the Joint Stipulation. Evidence of the reimbursements included the consumers' names, the dates the loans closed, the check numbers and the amount of the reimbursements.
  3. Lenox Financial has paid seven thousand four hundred eighty dollars ($7,480.00) in satisfaction of the full amount owed for the costs of the Division's 2008 examination/inspection, as set forth in the invoice issued to Lenox Financial.
  4. On or before the 30th day following the effective date of this Joint Stipulation, Lenox Financial shall submit to the Division a completed Mortgage Lender/Mortgage Broker 2010 Annual Report, in the form provided on the Division's website.
  5. Lenox Financial shall refrain from submitting an application to obtain a mortgage lender and/or mortgage broker license from the Division for a period of forty eight (48) months from October 15, 2010.
  6. During the 48-month term referenced above, the individual owners and members of Lenox Financial who held such positions as of the date of the 2008 examination/inspection shall be prohibited from taking an ownership position in and from participating, in any manner, in the responsibilities or duties of a control person of an entity licensed under General Laws chapter 255E. For the purposes of this Joint Stipulation, "control" shall be defined as the power, directly or indirectly, to direct the management or policies of a company, whether through ownership of securities, by contract, or otherwise.
  7. To the extent that Lenox Financial or any of the individual members or owners of Lenox Financial, as described above, who wish to resume business as a mortgage lender and/or mortgage broker under General Laws chapter 255E at the expiration of the 48-month term as set forth above, Lenox Financial and/or such individual, as applicable, shall be required to submit a completed application to obtain the relevant license(s) from the Commissioner. The Commissioner shall have all of the discretion set forth within General Laws chapter 255E, section 4 and the Division's regulation 209 CMR 42.00 et seq. in determining whether to issue a license to Lenox Financial to conduct the licensed business, provided however, that any such application shall not be denied on the basis of (a) the Temporary Order, (b) this Joint Stipulation and Order or (c) the matters addressed in the 2008 examination/inspection.
  8. In recognition of the parties having agreed on the terms of this Joint Stipulation to resolve the matters raised by the Temporary Order, the Division will terminate the Temporary Order immediately upon approval of this Joint Stipulation by the Administrative Hearing Officer and agrees to take no further action against Lenox Financial or any of the individual owners or members of Lenox Financial as of the date of the 2008 examination/inspection in regard to matters addressed therein or in the 2008 examination/inspection.
  9. This Joint Stipulation represents the resolution of this matter. There are no other agreements, promises, representations, or warranties other than those set forth in this Joint Stipulation, which replaces and supersedes all prior agreements between Lenox Financial and the Division.
  10. The undersigned representatives certify that they are fully authorized by the party whom they represent to enter in to the terms and conditions of this Joint Stipulation and legally to bind such party thereto. The undersigned parties consent to the submission of this Joint Stipulation to the Administrative Hearing Officer for approval and entry.

Respectfully submitted this _4th_ of April , 2011.


Valerie M. Carbone Prosecuting Counsel Division of Banks



Jon M. Shibley for Lenox Financial Mortgage, LLC




Nicole Palumbo, Esq.
Date Administrative Hearing Officer