1. After taking into consideration the FINDINGS OF FACT and CONCLUSIONS OF LAW stated herein, it is hereby:
- All States Mortgage has engaged in, or is about to engage in, acts or practices which warrant the belief that the Corporation is not operating honestly, fairly, soundly and efficiently in the public interest in violation of standards governing the licensing and conduct of a mortgage broker including, but not limited to, the provisions of the Division's regulations at 209 CMR 42.00 et seq.; and
- The public interest will be irreparably harmed by delay in issuing an ORDER TO CEASE AND DESIST to All States Mortgage.
- ORDERED that All States Mortgage, its officers, directors, employees, and their successors or assigns, shall immediately cease engaging in the activities of a mortgage broker, as defined under Massachusetts General Laws chapter 255E, section 1, relative to any residential property in Massachusetts, not otherwise expressly permitted by the terms of this Order.
- IT IS FURTHER ORDERED, that All States Mortgage shall immediately place any fees previously collected from Massachusetts consumers, relative to any pending mortgage loan applications accepted at any office location, into a separate escrow account, designated for such purpose and maintained at a federally insured bank.
- IT IS FURTHER ORDERED that All States Mortgage shall immediately place with one or more qualified broker(s) or lender(s), as appropriate based on the status of the application and with no loss to applicants, all of its pending Massachusetts residential mortgage loan applications. All States Mortgage shall obtain the prior approval of the Commissioner before placing such applications to the qualified broker(s) or lender(s).
- IT IS FURTHER ORDERED that All States Mortgage shall submit to the Commissioner a detailed record, prepared as of the date of submission, of all of the Corporation's pending residential mortgage loan applications on property located in Massachusetts. The records to be produced shall be submitted to the Commissioner within five (5) days of the effective date of this Order and shall include all information on file, regarding the Corporation's open application list, including but not necessarily limited to, the following:
All information on file as of the date of submission regarding All States Mortgage's open application list, including but not limited to, the following: The names of all individuals from whom All States Mortgage has accepted an application for a residential mortgage loan; the applicants' addresses and telephone numbers; the amount of all prepaid loan fees submitted by the customer; the amount of each loan; application status (i.e. filed, submitted to lenders, cleared to close, etc.); scheduled closing dates; rate lock status; and a list identifying the applicable broker(s) or lender(s) with whom the applicants' application was placed. The latter list should include telephone numbers of contact persons familiar with the Corporation's submitted loans.
- IT IS FURTHER ORDERED that All States Mortgage shall immediately secure all pending residential mortgage loan application files and shall make such files, in their entirety, available to the Commissioner upon request.
- IT IS FURTHER ORDERED that within thirty (30) days of the effective date of this Order, the Corporation shall cause to be made a review of all Massachusetts residential mortgage loans originated by All States Mortgage since June 8, 2004 and shall identify all mortgage loan transactions in which the amount actually paid by the consumer as a loan fee, mortgage broker fee, application fee, or similar fee, as recorded on the settlement agreement, exceeded the amount disclosed to the consumer, in writing, for such fees prior to closing;
- In each mortgage loan transaction identified pursuant to Paragraph 46, All States Mortgage shall reimburse the consumer the difference between the actual charge assessed to the individual consumer as a loan fee, mortgage broker fee, processing fee, or similar fee and the amount disclosed in writing for such fees prior to closing;
- Within thirty (30) days of the effective date of this Order, All States Mortgage shall submit to the Commissioner a list of all borrowers identified pursuant to the above described review of residential mortgage loan transactions to whom a reimbursement is owed by the Corporation in accordance with this Paragraph of the Order; and
- Within sixty (60) days of the effective date of this Order, All States Mortgage shall submit evidence of all reimbursements issued to consumers pursuant to this Paragraph of the Order, including the consumers' names, the dates the loans closed, check numbers, the amount of the reimbursements, and sufficient evidence to illustrate the consumers' receipt of the reimbursements.
- IT IS FURTHER ORDERED that this Order shall become effective immediately and shall remain in effect unless set aside, limited, or suspended by the Commissioner or upon court order after review under General Laws chapter 30A.
- IT IS FURTHER ORDERED that a hearing will be scheduled on this matter to determine whether or not such ORDER shall become permanent and final only upon receipt of a written request for such a hearing from All States Mortgage within twenty (20) days of the effective date of this ORDER. If no hearing is requested within this twenty (20) day period, this ORDER shall become permanent and final until it is modified or vacated by the Commissioner.
II. ORDER TO SHOW CAUSE AND NOTICE OF RIGHT TO A HEARING
NOW, THEREFORE, based upon the Findings of Fact set forth above, the Division hereby sets forth the following Charges against All States Mortgage:
- The Division hereby re-alleges and incorporates by reference the Findings of Fact presented in Paragraphs 1 through 34 of the Order as though fully set forth.
- The Division hereby re-alleges and incorporates by reference the Conclusions of Law presented in Paragraphs 35 through 40 of the Order as though individually set forth as separate Charges providing the basis of this ORDER TO SHOW CAUSE.
B. PRAYER FOR RELIEF
- WHEREFORE, the Division, by and through the Commissioner , prays for a final decision as follows:
C. NOTICE OF RIGHT TO A HEARING
- For a final Agency decision in favor of the Division and against All States Mortgage for each Charge set forth in this ORDER TO SHOW CAUSE;
- For a final Agency decision revoking All States Mortgage's mortgage broker license, number MB2467 to conduct business as a mortgage broker in Massachusetts;
- For a final Agency decision prohibiting All States Mortgage, or any of its officers or directors, or their successors or assigns, from applying for a mortgage lender or mortgage broker license under Massachusetts General Laws chapter 255E, section 2, or for any other license from the Commissioner, for a period of forty-eight (48) months from the effective date of the final Agency decision;
- For costs and fees of the Division's investigation of this matter; and
- For such additional equitable relief as the Presiding Officer may deem just and proper including, without limitation, an order directing All States Mortgage to issue the reimbursements as set forth in the Order.
- All States Mortgage or its authorized representative is required to file an Answer or otherwise respond to the Charges contained in this ORDER TO SHOW CAUSE within twenty-one (21) days of its effective date, pursuant to the Standard Adjudicatory Rules of Practice and Procedure, 801 C.M.R. 1.01 (6)(e). If All States Mortgage fails to response to this ORDER TO SHOW CAUSE within the twenty-one (21) day period, the TEMPORARY ORDER TO CEASE AND DESIST shall become permanent and final until it is modified or vacated by the Commissioner. Failure to file an Answer may also result in a default judgment against the Corporation in the matter of the revocation of All States Mortgage's mortgage broker license. The Answer, and any subsequent filings that are made in conjunction with this proceeding, shall be directed to the Division, with a copy to Prosecuting Counsel.
All papers filed with the Division shall be addressed to the attention of:
Administrative Hearings Officer
Division of Banks
One South Station, 3 rd Floor
Boston, Massachusetts 02110
Prosecuting Counsel for this matter is:
Valerie M. Carbone, Esq.
Division of Banks
One South Station, 3 rd Floor
Boston, Massachusetts 02110
- You are further advised that All States Mortgage has the right to be represented by counsel or other representative, to call and examine witnesses, to introduce exhibits, to cross-examine witnesses who testify against All States Mortgage, and to present oral argument. The hearing will be held at a date and time to be determined and will be conducted according to Massachusetts General Laws, chapter 30A, sections 10 and 11, and the Standard Adjudicatory Rules of Practice and Procedure, 801 C.M.R. 1.01 and 1.03.
- All States Mortgage or its representative may examine any and all Division records relative to this case prior to the date of the hearing, during normal business hours, at the office of the Prosecuting Counsel. If you elect to undertake such an examination, please contact the Prosecuting Counsel at (617) 956-1552 in advance to schedule a time that is mutually convenient.
BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS.
Dated at Boston, Massachusetts, this 5th day of November, 2007.
By: Steven L. Antonakes
Commissioner of Banks
Commonwealth of Massachusetts