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Settlement AAA Southern New England Bank

Date: 06/21/2011
Organization: Division of Banks
Docket Number: 2011-030
Location: Providence, RI

Table of Contents

AAA Southern New England Bank, Providence, RI - Settlement Agreement


Suffolk, SS.

Docket No. 2011-030


In the Matter of
Providence, Rhode Island



THIS SETTLEMENT AGREEMENT is made this 21st day of June, 21, 2011 between AAA SOUTHERN NEW ENGLAND BANK, Providence, Rhode Island (the "Financial Institution"), a Rhode Island financial institution authorized to transact business under Title 19 of the Rhode Island General Laws, and registered with the Massachusetts Division of Banks ("Division") through the Nationwide Mortgage Licensing System (NMLS) as a mortgage company which employs mortgage loan originators which are, or should be, licensed by the Division.



WHEREAS, the Financial Institution discovered that certain Massachusetts residential mortgage loans were originated during the period July 31, 2010 through March 24, 2011 by the Financial Institution employees who were not properly licensed under Massachusetts General Laws chapter 255F as Mortgage Loan Originators (the "licensing violations").

WHEREAS, on or about March 25, 2011, the Financial Institution, of its own accord, notified the Division of the aforementioned unlicensed loan origination activity.

WHEREAS, the Financial Institution cooperated fully with the Division in voluntarily producing information and responding to questions relevant to the Financial Institution's mortgage loan origination activity.

WHEREAS, the Financial Institution has taken affirmative steps to identify and address the licensing violations that occurred, and to prevent the reoccurrence of such violations.

WHEREAS, there is no evidence that the licensing violations resulted in any consumer harm and/or impact.

WHEREAS, the Financial Institution assumes all responsibility for the licensing violations and asserts that such violations were not the fault of any individual Financial Institution employees.

WHEREAS, without any requirement or obligation to do so, the Financial Institution has agreed to satisfy any civil assessments assessed as a result of the licensing violations.

WHEREAS, the Financial Institution desires to resolve the concerns of the Division through this Settlement Agreement; and the Financial Institution is entering into this Settlement Agreement with the Division on the terms stated herein.


NOW COME the parties in the above-captioned matter, the Division and the Financial Institution, both of whom desire to resolve this matter and agree as follows:


  1. The Financial Institution has established, implemented, enhanced and will continue to maintain procedures to ensure that the Financial Institution does not conduct business with any individuals who engage in loan originator activity regarding residential property located in Massachusetts who are not duly licensed and actively sponsored as mortgage loan originators under Massachusetts General Laws chapter 255F and 209 CMR 41.00 et seq.

    1. The Financial Institution agrees to submit a payment totaling seventy-four thousand dollars ($74,000.00) in satisfaction of a civil assessment collected in consideration of the Financial Institution conducting mortgage business in Massachusetts with and through unlicensed mortgage loan originators.
    2. The Financial Institution shall remit payment(s) in the amounts indicated above, payable to the "Commonwealth of Massachusetts," to the Office of the Commissioner of Banks, Attn: Mortgage Loan Originator Licensing Unit, 1000 Washington Street, 10th Floor, Boston, Massachusetts 02118.
  2. The Financial Institution shall maintain policies and procedures to ensure that all information it submits through the NMLS is kept up-to-date. Such procedures shall necessarily ensure that the Financial Institution files accurate supplementary information on a timely basis, as needed.
  3. The Financial Institution shall comply with all laws and regulations applicable to its conducting the business of a mortgage broker and/or mortgage lender. The Financial Institution 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 Settlement Agreement.


  4. The Financial Institution hereby waives, solely for purposes for settling this matter :

    1. The receipt of a Notice specifying the allegations which form the basis for issuance of the Settlement Agreement;
    2. All defenses to the issuance of the Settlement Agreement;
    3. The filing of proposed findings of fact and conclusions of law;
    4. A written decision of the Commissioner; and
    5. Exceptions and briefs with respect to such written decision.
  5. Nothing in this Settlement Agreement shall be construed as permitting the Financial Institution to violate any law, rule, regulation, or regulatory bulletin to which the Financial Institution is subject.
  6. In consideration of the foregoing Settlement Agreement, the Division agrees not to pursue formal measures against the Financial Institution or any of the individual loan originators who engaged in unlicensed mortgage loan originator activity during the period July 31, 2010 through March 24, 2011, relative to this matter, while this Settlement Agreement is in effect.
  7. Failure to comply with the terms of this Settlement Agreement shall constitute grounds for referral to the Attorney General of the Commonwealth and may constitute grounds for actions against individual mortgage loan originators who are employed by the Financial Institution.
  8. This Settlement Agreement shall become effective and public immediately upon the date of its issuance.
  9. The provisions of this Settlement Agreement shall not limit, estop, or otherwise prevent any other state agency or department, from taking any other action affecting the Financial Institution or its employees.
  10. The provisions of this Settlement Agreement shall remain effective and enforceable except to the extent that, and until such time as, any provisions of this Settlement Agreement shall have been modified, terminated, suspended, or set aside by the Commissioner or upon an order of a court of competent jurisdiction.
  11. This Settlement Agreement is the complete document representing the resolution of this matter. There are no other agreements, promises, representations, or warranties other than those set forth in this Settlement Agreement.


Agreed to this 21st day of June, 2011.

AAA Southern New England Bank
Providence, Rhode Island

By its duly authorized officer:

Mark Allen Shaw



Approved this 21st day of June, 2011.

Commonwealth of Massachusetts Division of Banks

David J. Cotney
Commissioner of Banks