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6:10 Services d/b/a Debt Free America

Order
Thursday, July 15, 2010
Docket No. 10-041-B

File attachments: 

http://www.dfr.vermont.gov/sites/default/files/10-041-B_20150312085401.pdf

Docket No. 10-041-B

In Re: 6:10 Services d/b/a Debt Free America, Respondent

 

ORDER REFUSING RENEWAL OF DEBT ADJUSTER LICENSE

NOW COMES the Commissioner of the Vermont Department of Banking, Insurance, Securities, and Health Care Administration (the "Department") and pursuant to 8 V.S.A. §2210 issues this Determination and Order Refusing Renewal of 6:10 Services d/b/a Debt Free America's (the "Respondent") debt adjuster license.

Findings Of Fact

1. Respondent currently holds debt adjuster license no. 15 for a location at 8575 Gibbs Drive, Suite 190, San Diego, California 92123.

2. 8 V.S.A. §§ 4867 and 4868 provide in relevant part that a license shall remain in full force and effect until surrendered by the licensee, or until the Commissioner revokes, suspends, or refuses to renew the license.

3. Respondent failed to pay its annual license renewal fee for its debt adjuster license, which fee was due on or before December 1, 2009 for calendar year 2010, as required by 8 V .S.A. § 4867. Failure to pay the license renewal fee constitutes grounds for the Commissioner to refuse to renew Respondent's license under 8 V.S.A. §§ 4867 and 4868.

4. On May 20, 2010 the Department sent Administrative Charges and Notice of Hearing Rights (the "Administrative Charges") by regular mail and by certified mail, return receipt requested, to Respondent's current address as stated on its license, as required by 8 V.S.A.

§ 4868(b) and Regulation B-82-1. The Administrative Charges constitute notice to Respondent of its right to have a hearing and defend against the charges.

5. Respondent has failed to request a hearing or otherwise defend against the charges within the time permitted by law.

Conclusions Of Law

6. Respondent failed to renew its license for 2010 by failing to pay its license renewal fee on or before December 1, 2009 as required by 8 V.S.A. § 4867. Failure to renew its license and pay the license renewal fee constitutes grounds under 8 V.S.A. §§ 4867 and 4868 for the Commissioner to issue an order refusing to renew the license issued to Respondent.

7. The Department provided Respondent with adequate written notice and an opportunity for a hearing as required by 8 V.S.A. § 4868(b) and Regulation B-82-1. Respondent failed to request a hearing or otherwise defend against the charges.

ORDER

Pursuant to the authority contained in 8 V.S.A. Chapter 1, 3, and 133, the Vermont Administrative Procedures Act (3 V.S.A. §§ 809 et seq.), and Department Regulation B-82-1:

A. Respondent's debt adjuster license is hereby not renewed for calendar year 2010.

1st Citizen Mortgage, LLC. d/b/a Champlain Valley Mortgage

Order
Thursday, July 15, 2010
Docket No. 10-042-B

File attachments: 

http://www.dfr.vermont.gov/sites/default/files/10-042-B_20150312085523.pdf

Docket No. 10-042-B

In Re: 1st Citizen Mortgage, LLC d/b/a Champlain Valley Mortgage, Respondent

 

ORDER REFUSING RENEWAL OF MORTGAGE BROKER LICENSE

NOW COMES the Commissioner of the Vermont Department of Banking, Insurance , Securities, and Health Care Administration (the "Department") and pursuant to 8 V.S.A. §2210 issues this Determination and Order Refusing Renewal of 1st Citizen Mortgage, LLC d/b/a Champlain Valley Mortgage's (the "Respondent") mortgage broker license.

Findings Of Fact

1. Respondent currently holds mortgage broker license no. 0681MB for a location at 119 Littleton Road , Suite 104, Parsippany, New Jersey 07054.

2. 8 V.S.A. § 2204(c) provides in relevant part that a license shall remain in full force and effect until surrendered by the licensee, or until the Commissioner revokes, suspends, or refuses to renew the license.

3. Respondent failed to pay its annual license renewal fee for its mortgage broker license, which fee was due on or before December 1, 2009 for calendar year 2010, as required by 8 V.S.A. § 2209. Failure to pay the license renewal fee constitutes grounds for the Commissioner to refuse to renew Respondent's license under 8 V .S.A. §2210.

4. On May 20, 2010 the Department sent Administrative Charges and Notice of Hearing Rights (the "Administrative Charges") by regular mail and by certified mail, return receipt requested, to Respondent's current address as stated on its license, as required by 8 V.S.A. § 2210 and Regulation B-82-1. The Administrative Charges constitute notice to Respondent of its right to have a hearing and defend against the charges.

5. Respondent has failed to request a hearing or otherwise defend against the charges within the time permitted by law.

Conclusions Of Law

6. Respondent failed to renew its license for 2010 by failing to pay its license renewal fee on or before December 1, 2009 as required by 8 V.S.A. § 2209. Failure to renew its license and pay the license renewal fee constitutes grounds under 8 V.S.A. § 2210 for the Commissioner to issue an order refusing to renew the license issued to Respondent.

7. The Department provided Respondent with adequate written notice and an opportunity for a hearing as required by 8 V .S.A. § 2210 and Regulation B-82-1. Respondent failed to request a hearing or otherwise defend against the charges.

ORDER

Pursuant to the authority contained in 8 V.S.A. Chapter 1, 3, and 73, the Vermont Administrative Procedures Act (3 V .S.A. §§ 809 et seq.), and Department Regulation B-82-1:

A. Respondent's mortgage broker license is hereby not renewed for calendar year 2010.

QuoteMatch, LLC.

Order
Thursday, July 15, 2010
Docket No. 10-043-B

File attachments: 

http://www.dfr.vermont.gov/sites/default/files/10-043-B_20150312085613.pdf
Docket No. 10-043-B

ln Re: QuoteMatch, LLC, Respondent

 

ORDER REFUSING RENEWAL OF MORTGAGE BROKER LICENSE

NOW COMES the Commissioner of the Vermont Department of Banking, Insurance, Securities, and Health Care Administration (the "Department") and pursuant to 8 V.S.A. §2210 issues this Determination and Order Refusing Renewal of QuoteMatch, LLC's (the "Respondent") mortgage broker license.

Findings Of Fact

1. Respondent currently holds mortgage broker license no. 0677MB for a location at 9950 Summers Ridge Road, Suite 160, San Diego, California 92121

2. 8 V.S.A. § 2204(c) provides in relevant part that a license shall remain in full force and effect until surrendered by the licensee, or until the Commissioner revokes, suspends, or refuses to renew the license.

3. Respondent failed to pay its annual license renewal fee for its mortgage broker license, which fee was due on or before December 1, 2009 for calendar year 2010, as required by 8 V.S.A. § 2209. Failure to pay the license renewal fee constitutes grounds for the Commissioner to refuse to renew Respondent's license under 8 V.S.A. §2210.

4. On May 20, 2010 the Department sent Administrative Charges and Notice of Hearing Rights (the "Administrative Charges") by regular mail and by certified mail, return receipt requested, to Respondent's current address as stated on its license, as required by 8 V.S.A. § 2210 and Regulation B-82-1. The Administrative Charges constitute notice to Respondent of its right to have a hearing and defend against the charges.

5. Respondent has failed to request a hearing or otherwise defend against the charges within the time permitted by law.

Conclusions Of Law

6. Respondent failed to renew its license for 2010 by failing to pay its license renewal fee on or before December 1, 2009 as required by 8 V.S.A. § 2209. Failure to renew its license and pay the license renewal fee constitutes grounds under 8 V.S.A. § 2210 for the Commissioner to issue an order refusing to renew the license issued to Respondent.

7. The Department provided Respondent with adequate written notice and an opportunity for a hearing as required by 8 V .S.A. § 2210 and Regulation B-82-1. Respondent failed to request a hearing or otherwise defend against the charges.

ORDER

Pursuant to the authority contained in 8 V.S.A. Chapter 1, 3, and 73, the Vermont Administrative Procedures Act (3 V.S.A. §§ 809 et seq.), and Department Regulation B-82-1:

A. Respondent's mortgage broker license is hereby not renewed for calendar year 2010.


Mortgage Capital, Inc. d/b/a JRL Mortgage Capital

Order
Thursday, July 15, 2010
Docket No. 10-044-B

File attachments: 

http://www.dfr.vermont.gov/sites/default/files/10-044-B_20150312085705.pdf

Docket No. 10-044-B

In Re: Mortgage Capital, Inc. d/b/a JRL Mortgage Capital, Respondent

 

ORDER REFUSING RENEWAL OF MORTGAGE BROKER LICENSE

NOW COMES the Commissioner of the Vermont Department of Banking, Insurance, Securities, and Health Care Administration (the "Department") and pursuant to 8 V .S.A. §2210 issues this Determination and Order Refusing Renewal of Mortgage Capital, Inc. d/b/a JRL Mortgage Capital's (the "Respondent") mortgage broker license.

Findings Of Fact

1. Respondent currently holds mortgage broker license no. 0689MB for a location at 271 Main Street, Suite 303, Stoneham, Massachusetts 02180.

2. 8 V.S .A. § 2204(c) provides in relevant part that a license shall remain in full force and effect until surrendered by the licensee, or until the Commissioner revokes, suspends, or refuses to renew the license.

3. Respondent failed to pay its annual license renewal fee for its mortgage broker license, which fee was due on or before December 1, 2009 for calendar year 2010, as required by 8 V.S.A. § 2209. Failure to pay the license renewal fee constitutes grounds for the Commissioner to refuse to renew Respondent's license under 8 V.S.A. §2210.

4. On May 20, 2010 the Department sent Administrative Charges and Notice of Hearing Rights (the "Administrative Charges") by regular mail and by certified mail, return receipt requested, to Respondent's current address as stated on its license, as required by 8 V.S.A.

§ 221 0 and Regulation B-82-1. The Administrative Charges constitute notice to Respondent of its right to have a hearing and defend against the charges.

5. Respondent has failed to request a hearing or otherwise defend against the charges within the time permitted by law.

Conclusions Of Law

6. Respondent failed to renew its license for 2010 by failing to pay its license renewal fee on or before December I, 2009 as required by 8 V.S.A. § 2209. Failure to renew its license and pay the license renewal fee constitutes grounds under 8 V.S.A. § 2210 for the Commissioner to issue an order refusing to renew the license issued to Respondent.

7. The Department provided Respondent with adequate written notice and an opportunity for a hearing as required by 8 V.S .A. § 2210 and Regulation B-82-1. Respondent f;:tiled to request a hearing or otherwise defend against the charges.

ORDER

Pursuant to the authority contained in 8 V .S.A. Chapter 1, 3, and 73, the Vermont Administrative Procedures Act (3 V.S.A. §§ 809 et seq.), and Department Regulation B-82-1:

A. Respondent's mortgage broker license is hereby not renewed for calendar year 2010.

Redwood Financial Partners, LLC.

Order
Thursday, July 15, 2010
Docket No. 10-045-B

File attachments: 

http://www.dfr.vermont.gov/sites/default/files/10-045-B_20150312085757.pdf
Docket No. 10-045-B

In Re: Redwood Financial Partners, LLC, Respondent

ORDER REFUSING RENEWAL OF MORTGAGE BROKER LICENSE

NOW COMES the Commissioner of the Vermont Department of Banking, Insurance, Securities, and Health Care Administration (the "Department") and pursuant to 8 V.S.A. §2210 issues this Determination and Order Refusing Renewal of Redwood Financial Partners, LLC's (the "Respondent") mortgage broker license.

Findings Of Fact

1. Respondent currently holds mortgage broker license no. 0739MB for a location at 222 Bartholomew Street, Peabody, Massachusetts 01960

2. 8 V.S.A. § 2204(c) provides in relevant part that a license shall remain in full force and effect until surrendered by the licensee, or until the Commissioner revokes, suspends, or refuses to renew the license.

3. Respondent failed to pay its annual license renewal fee for its mortgage broker license, which fee was due on or before December 1, 2009 for calendar year 2010, as required by 8 V.S.A. § 2209. Failure to pay the license renewal fee constitutes grounds for the Commissioner to refuse to renew Respondent's license under 8 V.S.A. §2210.

4. On May 20, 2010 the Department sent Administrative Charges and Notice of Hearing Rights (the "Administrative Charges") by regular mail and by certified mail, return receipt requested, to Respondent's current address as stated on its license, as required by 8 V.S.A. § 2210 and Regulation B-82-1 . The Administrative Charges constitute notice to Respondent of its right to have a hearing and defend against the charges.

5. Respondent has failed to request a hearing or otherwise defend against the charges within the time permitted by law.

Conclusions Of Law

6. Respondent failed to renew its license for 2010 by failing to pay its license renewal fee on or before December 1, 2009 as required by 8 V.S.A . § 2209. Failure to renew its license and pay the license renewal fee constitutes grounds under 8 V.S.A. § 2210 for the Commissioner to issue an order refusing to renew the license issued to Respondent.

7. The Department provided Respondent with adequate written notice and an opportunity for a hearing as required by 8 V.S.A. § 2210 and Regulation B-82-1. Respondent failed to request a hearing or otherwise defend against the charges.

ORDER

Pursuant to the authority contained in 8 V.S.A. Chapter 1, 3, and 73, the Vermont Administrative Procedures Act (3 V.S.A. §§ 809 et seq.), and Department Regulation B-82-1:

A. Respondent's mortgage broker license is hereby not renewed for calendar year 2010.

Academy Mortgage Corporation

Order
Friday, July 23, 2010
Docket No. 10-063-B

File attachments: 

http://www.dfr.vermont.gov/sites/default/files/10-063-B_20150312085840.pdf
Docket No. 10 -063-B
 
In Re: Academy Mortgage Corporation, Respondent

STIPULATION AND CONSENT ORDER

Background

1. Pursuant to 8 V.S.A., Chapters 1 and 73, the Commissioner of the Vermont Department of Banking, Insurance, Securities, and Health Care Administration (the "Department") is charged with administering and enforcing Vermont law as it pertains to licensed lenders in the State of Vermont.

2. Academy Mortgage Corporation ("Academy") is a Utah corporation with a principal place of business at 1218 East 7800 South, Suite 100, Sandy, Utah 84094.

3. At all relevant times Academy held license no. 6125 to act as a licensed lender in the State of Vermont and held mortgage broker license no. 0961MB to act as a mortgage broker in the State of Vermont, both from a location at 1218 East 7800 South, Suite 100, Sandy, Utah 84094. Academy does not, and did not, hold any other Vermont lender or mortgage broker licenses.

4. The Department has alleged that between May 5, 2009 and January 31, 2010:

a. On one or more occasions Academy originated loans from unlicensed locations in violation of 8 VSA §§ 2206, 2208, and 2228.

b. On one or more occasions Academy did not issue a commitment letter in the form and content or within the time frame required by 9 VSA §103 and Department Regulation B-98-1.

c. On one or more occasions Academy issued a privacy notice that did not comply with the requirements of Department Regulation B-200 1-01.

d. On one or more occasions Academy imposed a cushion on home loan escrow accounts in excess of the one-month limit permitted by 8 VSA §10404.

e. Academy failed to properly maintain its segregated applicant escrow account in violation of 8 VSA §2218.

5 Academy has denied any intentional wrongdoing on its part.

6. The parties wish to resolve this matter without administrative or judicial proceedings .

7. Academy and the Department expressly agree to enter into this Stipulation and Consent Order in full and complete resolution of the alleged violations described in paragraph 4

Stipulation and Agreement

Academy and the Department hereby stipulate and agree as follows:

8. Academy does not dispute that there is a factual basis for the allegations.

9. Academy shall pay an administrative penalty to the Department in the amount of

$10,000.00, which payment shall be made on or before August 15, 2010.

10. Academy shall:

a. License the locations from which loans officers work with Vermont borrowers and shall not conduct any business with Vermont borrowers from unlicensed locations.

b. Issue commitment letters in the form and at the time required by 9 VSA §103 and Department Regulation B-98-1.

c. Revise its Vermont privacy notice and policies so that they are in compliance with Department Regulation B-2001-01 and shall only issue to Vermont borrows privacy notices that are in compliance with Vermont law.

d. Limit its home loan escrow account cushion to not more that one-month, as permitted by 8 VSA §10404.

e. Maintain its applicant escrow account so that funds are not commingled or overdrawn, as required by 8 VSA §2218.

11. Academy shall adopt policies and procedures to insure that Academy complies with paragraph 10 and shall provide the Department with a copy of such policies and procedures by August 15, 2010.

12. Academy shall send the Department complete loan files of Academy's next three Vermont loans so that the Department may review for compliance with Vermont law and with this Stipulation and Consent Order

13. In the event Academy fails to pay the administrative penalty or fails to provide the Department with a copy of its policies and procedures, both on or before August 15, 2010, or

fails to provide the Department with copies of its next three Vermont loan files, the Commissioner may, upon request from the Banking Division of the Department, issue an Order suspending any or all of Academy's licenses and imposing additional administrative penalties.

The Department's failure to exercise this option shall not constitute a waiver of the right to exercise such option at any other time.

14. The Department shall retain continuing jurisdiction in this matter until Academy has complied with the terms and conditions of this Stipulation and Order.

15. This Stipulation and Order shall not prevent any person from pursuing any claim he or she may have against Academy, nor shall it be understood as determining whether any such claim may or may not exist in law or equity.

16. Nothing contained in this Stipulation and Order shall restrain or limit the Department in responding to and addressing any actual complaint filed with the Department involving Academy and the Department reserves the right to pursue restitution in connection with any complaint filed with the Department.

17. Academy knowingly and voluntarily waives any right it may have to judicial review by any court of these matters by way of suit, appeal, or extraordinary relief resulting from entry or enforcement ofthis Stipulation and Order.

ORDER

NOW THEREFORE, IT IS HEREBY ORDERED THAT:

18. Academy shall comply with all agreements, stipulations, and undertakings as recited above.

19. Academy shall pay an administrative penalty to the Department in the amount of $10,000.00, which payment shall be made on or before August 15, 2010.

20. On or before August 15, 2010 Academy shall provide the Department with a copy of its policies and procedures as required by paragraph 11.

21. Academy shall send the Department complete loan files of Academy's next three Vermont loans so that the Department may review for compliance with Vermont law and with this Stipulation and Consent Order.

22. In the event Academy fails to pay the administrative penalty or fails to provide the Department with a copy of its policies and procedures, both on or before August 15, 2010, or fails to provide the Department with copies of its next three Vermont loan files, the Commissioner may, upon request from the Banking Division of the Department, issue an Order suspending any or all of Academy's licenses and imposing additional administrative penalties. The Department's failure to exercise this option shall not constitute a waiver of the right to exercise such option at any other time.

23. This Order shall not prevent any person from pursuing any claim he or she may have against Academy.

24. Nothing contained in this Order shall restrain the Department from responding to and addressing any complaint involving Academy filed with the Department or shall preclude

the Department from pursuing any other violation of law.

25. This Order shall not be construed as an adjudication of any violation of any Vermont law or federal law, except as specifically set forth herein.

Upper Valley Mortgage, LLC

Order
Tuesday, March 22, 2011
Docket No. 11-001-B

File attachments: 

http://www.dfr.vermont.gov/sites/default/files/11-001-B_20150312090723.pdf

Docket No. 11-001-B

In Re: Upper Valley Mortgage, LLC Respondent

 

DEFAULT JUDGMENT AND ORDER

This matter came before the Commissioner (the "Commissioner") of the Vermont Department of Banking, Insurance, Securities and Health Care Administration (the "Department") on the Department's Motion for Default.

Based upon the Department's Motion for Default Judgment and Administrative Charges filed in this matter, the Commissioner hereby issues the following findings of fact, conclusions of law, and order against Upper Valley Mortgage, LLC ("Respondent").

Jurisdiction And Authority

1. The Commissioner is charged with administering and enforcing the lending laws of the State of Vermont pursuant to 8 VSA §§ 11 and 12.

2. The Commissioner is charged with administering and enforcing 8 VSA Chapter 73 and Regulation B-96-1, which govern the conduct of mortgage brokers in the State of Vermont.

Respondent

3. Respondent is a New Hampshire corporation that currently holds mortgage broker license no. 0562 MB for a location at 85 Mechanic Street, Suite 200, Lebanon, New Hampshire.

Findings of Fact

4. The Respondent failed to file an annual license renewal with the Commissioner for calendar year 2011 on or before December 1, 2010 as required by 8 VSA § 2209. Respondent has not filed its annual license renewal for calendar year 2011.

5. On or about December 17, 2010 the State of New Hampshire, Respondent's state of domicile, revoked Respondent's New Hampshire Mortgage Broker License.

6. The Department filed Administrative Charges in this matter on January 6, 2011.

7. The Department properly served the Respondent with the Administrative Charges and Notice of Hearing Rights (the "Administrative Charges"). On January 6, 2011 the Administrative Charges were sent to the Respondent by regular mail and by certified mail, return receipt requested, to the current address as stated on its license as specified in 8 VSA §2210(b). On January 13, 2011 the Administrative Charges were sent to the Respondent by regular mail and by certified mail, return receipt requested, to an address reasonably believed to be Respondent's current address.

8. Respondent received the Administrative Charges on January 21, 2011 as evidenced by the signed certified mail return receipt.

9. Respondent failed to file an answer, enter an appearance, or otherwise respond to the Department's Administrative Charges within the 30-day time period set forth in Regulation No. 82-1 (Revised) §5(a).

Conclusions Of Law

10. Respondent failed to file its annual license renewal for 2011 on or before December 1, 201 0, and still has not filed its annual license renewal, in violation of 8 VSA §2209.

11. Respondent failed to remain licensed and in good standing in its state of domicile in violation of 8 VSA §§2210 and 2204.

12. Pursuant to 8 VSA § 2210(a), the Commissioner may suspend, revoke, terminate, or refuse to renew a license if the Commissioner finds that the licensee has failed to pay the annual renewal of license fee, has failed to maintain the required bond, has failed to comply with any lawful demand, ruling, or requirement of the Commissioner, or has violated any provisions of Chapter 73 of Title 8, VSA

13. Pursuant to 8 VSA §§2210(a) and 2204, the Commissioner may suspend, revoke, terminate, or refuse to renew a license if the license is not licensed and in good standing in its state of domicile, or if the licensee has ever had a mortgage broker license, lender license, mortgage loan originator license, or similar license revoked in any governmental jurisdiction.

ORDER

NOW THEREFORE, it is hereby ordered as follows:

14. Respondent's license is hereby terminated and the Commissioner refuses to renew Respondent's license, effective immediately.

15. Respondent and any and all employees or agents of Respondent, and any successors or assigns, shall immediately cease engaging in mortgage broker activities in the State of Vermont.

16. Nothing in this Order shall affect any party's right to recover damages or restitution from Respondent and this Order shall not constitute a waiver by the Department to seek restitution or administrative penalties for any additional violations of law as discovered by the Department.

NOTICE OF RIGHT TO APPEAL

Pursuant to 8 VSA §2213, you may appeal this order directly to the Washington Superior Court provided you make the appeal within fifteen days after receipt of this order.

Novelle Financial Services, Inc.

Order
Friday, May 20, 2011
Docket No. 11-012-B

File attachments: 

http://www.dfr.vermont.gov/sites/default/files/11-012-B_20150312090817.pdf

Docket No. 11-012-B

In Re: Novelle Financial Services, Inc., Respondent

 

ORDER REFUSING RENEWAL OF LENDER LICENSE

NOW COMES the Commissioner of the Vermont Department of Banking, Insurance, Securities, and Health Care Administration (the "Department") and pursuant to 8 V.S.A. §2210 issues this Determination and Order Refusing Renewal of Novelle Financial Services, Inc.'s (the "Respondent") lender license.

Findings Of Fact

1. Respondent currently holds lender license no. 5209 for a location at 19500 Jamboree Road, Suite 102, Irvine, CA 92612.

2. 8 V.S.A. § 2204(c) provides in relevant part that a license shall remain in full force and effect until surrendered by the licensee, or until the Commissioner revokes, suspends, or refuses to renew the license.

3. Respondent failed to pay its annual license renewal fee for its lender license, which fee was due on or before December 1, 2010 for calendar year 2011, as required by 8

V.S.A. § 2209. Failure to pay the license renewal fee constitutes grounds for the Commissioner to refuse to renew Respondent's license under 8 V.S.A. §2210.

4. On April 7, 2011 the Department sent Administrative Charges and Notice of Hearing Rights (the "Administrative Charges") by regular mail and by certified mail, return receipt requested, to Respondent's current address as stated on its license, as required by 8 V.S.A. § 2210 and Regulation B-82-1. Respondent received the Administrative Charges on or about April 11, 2011 as indicated on certified mail return receipt. The Administrative Charges constitute notice to Respondent of its right to have a hearing and defend against the charges.

5. Respondent has failed to request a hearing or otherwise defend against the charges within the time permitted by law.

Conclusions Of Law

6. Respondent failed to renew its license for 2011 by failing to pay its license renewal fee on or before December 1, 2010 as required by 8 V.S.A. § 2209. Failure to renew its license and pay the license renewal fee constitutes grounds under 8 V.S.A. § 2210 for the Commissioner to issue an order refusing to renew the license issued to Respondent.

7. The Department provided Respondent with adequate written notice and an opportunity for a hearing as required by 8 V.S.A. § 2210 and Regulation B-82-1. Respondent failed to request a hearing or otherwise defend against the charges.

ORDER

Pursuant to the authority contained in 8 V.S.A. Chapter 1, 3, and 73, the Vermont Administrative Procedures Act (3 V.S.A. §§ 809 et seq.), and Department Regulation B-82-1, Respondent's lender license is hereby not renewed for calendar year 2011.

The Clearinghouse Community Financial Development Institution

Order
Friday, May 20, 2011
Docket No. 11-014-B

File attachments: 

http://www.dfr.vermont.gov/sites/default/files/11-014-B_20150312090919.pdf

Docket No. 11-014-B

In Re: The Clearinghouse Community Financial Development Institution, Respondent

ORDER REFUSING RENEWAL OF LENDER LICENSE

NOW COMES the Commissioner of the Vermont Department of Banking, Insurance, Securities, and Health Care Administration (the "Department") and pursuant to 8 V .S.A. § 2210 issues this Determination and Order Refusing Renewal of The Clearinghouse Community Financial Development Institution's (the "Respondent") lender license.

Findings Of Fact

1. Respondent currently holds lender license no. 6008 for a location at 23861 El Toro Road, Suite 401, Lake Forest, CA 92630.

2. 8 V.S.A. § 2204(c) provides in relevant part that a license shall remain in full force and effect until surrendered by the licensee, or until the Commissioner revokes, suspends, or refuses to renew the license.

3. Respondent failed to pay its annual license renewal fee for its lender license, which fee was due on or before December 1,·2010 for calendar year 2011, as required by 8

V.S.A. § 2209. Failure to pay the license renewal fee constitutes grounds for the Commissioner to refuse to renew Respondent's license under 8 V.S.A. § 2210.

4. On April 7, 2011 the Department sent Administrative Charges and Notice of Hearing Rights (the "Administrative Charges") by regular mail and by certified mail, return receipt requested, to Respondent's current address as stated on its license, as required by 8 V.S.A. § 2210 and Regulation B-82-1. Respondent received the Administrative Charges on April 11, 2011 as indicated on certified mail return receipt. The Administrative Charges constitute notice to Respondent of its right to have a hearing and defend against the charges.

5. Respondent has failed to request a hearing or otherwise defend against the charges within the time permitted by law.

Conclusions Of Law

6. Respondent failed to renew its license for 2011 by failing to pay its license renewal fee on or before December 1, 2010 as required by 8 V.S.A. § 2209. Failure to renew its license and pay the license renewal fee constitutes grounds under 8 V.S.A. § 2210 for the Commissioner to issue an order refusing to renew the license issued to Respondent.

7. The Department provided Respondent with adequate written notice and an opportunity for a hearing as required by 8 V.S.A. § 2210 and Regulation B-82-1. Respondent failed to request a hearing or otherwise defend against the charges.

ORDER

Pursuant to the authority contained in 8 V.S.A. Chapter 1, 3, and 73, the Vermont Administrative Procedures Act (3 V.S.A. §§ 809 et seq .), and Department Regulation B-82-1:

A. Respondent's lender license is hereby not renewed for calendar year 2011.


Mortgage Access Corp. d/b/a Weichert Financial Services

Order
Friday, May 27, 2011
Docket No. 11-025-B

File attachments: 

http://www.dfr.vermont.gov/sites/default/files/11-025-B_20150312091155.pdf

Note: Please see printer-firendly version for appendix.

 

CONSENT AGREEMENT AND ORDER MORTGAGE ACCESS CORP D/B/A WEICHERT FINANCIAL SERVICES

 

WHEREAS, MORTGAGE ACCESS CORP. D/B/A WEICHERT FINANCIAL SERVICES. ("MAC" or the "Corporation"), a .corporation organized under the laws of, and headquartered in, Morris Plains, New Jersey with full knowledge of its rights to notice and hearing pursuant to the laws of the States of Connecticut, Louisiana, New Jersey, New York, North Carolina and Vermont and the Commonwealths of Kentucky, Massachusetts, Pennsylvania and Virginia (collectively, the "States") and having waived those rights, enters into this Consent Agreement and Order ("Order"), dated May 27, 2011, with representatives of the Connecticut Department of Banking; the Kentucky Department of Financial Institutions; the Louisiana Office of Financial Institutions; the Massachusetts Division of Banks; the New Jersey Department of Banking and Insurance; the State of New York Banking Department; the North Carolina Office of the Commissioner of Banks; the Pennsylvania Department of Banking; the Vermont Department of Banking, Insurance, Securities and Health Care Administration; and the Virginia Bureau of Financial Institutions (hereafter the "State Mortgage Regulators") solely for the purpose of resolving- this matter in its entirety and without admitting any allegations or implications of fact or any violation of laws, regulations and rules governing the conduct and operation of MAC's mortgage business in each. MAC and the States are collective y referred to as the "Parties."

WHEREAS, on September 13, 2010, the State Mortgage Regulators commenced a limited scope multi-state examination (the "Multi-State Examination") of MAC in order to determine whether MAC was engaged in the practice of soliciting and originating residential mortgage loans utilizing individuals unlicensed in particular states from the period July 1, 2008 to September 9, 2010.

WHEREAS, each State Mortgage Regulator conducted the Multi-State Examination pursuant to its statutory authority as well as protocols established by the CSB /AARMR Nationwide Cooperative Protocol for Mortgage Supervision as well as the Nationwide Cooperative Agreement for Mortgage Supervision.

WHEREAS, MAC is licensed under the laws of the States and has its corporate headquarters located at 225 Littleton Road, Morris Plains, New Jersey and maintains various licensed branch offices in the States. ·

WHEREAS, MAC cooperated with the State Mortgage Regulators during the co1,1rse of the Multi-State Examination by: voluntarily providing documentation, including evidence of its efforts to comply with applicable laws, rules and regulations, access to its employees, systems and facilities and responding to inquiries, both verbally and in writing.

WHEREAS, the confidential findings of the Multi-Sate Examination and related State Specific Reports of Examination (collectively referred to as the "Examination"), which were prepared by the State Mortgage Regulators and issued to MAC on November 29, 2010, identified compliance violations in the States with applicable laws, regulations, and rules governing MAC 's mortgage business.

WHEREAS, on December 30, 2010, MAC provided a response to the findings and violations contained in the Multi-State Report of Examination to the State Mortgage Regulators whereby MAC contested the findings and compliance violations contained therein .

WHEREAS, after negotiation and solely for the purpose of resolving all compliance violations found by the State Mortgage Regulators, and without MAC admitting wrongdoing, the Parties seek to r solve by mutual agreement and without protracted administrative proceedings and judicial review all compliance violations identified below pursuant to each State Mortgage Regulator's statutory authority. MAC hereby waives its right to the hearing processes relative to such proceedings in each individual State and affirms that MAC d sires to employ corrective procedures and is willing to take remedial action as set forth in this Order.

MULTI-STATE EXAMINATION FINDINGS

WHEREAS, the Multi-State Examination revealed that MAC implemented and maintained a formal, written policy that permitted individuals unlicensed in particular states to originate a loan within that state and submit the information to a centralized lending area referred to as the "Interstate Lending Desk" ("ILD") which was staffed by mortgage loan originators ("MLOs") who were licensed in multiple states.

WHEREAS, the Multi-State Examination revealed that MAC, through its written policy, permitted individuals to: negotiate loan rates and terms with the applicant, complete a Uniform Residential Loan Application ("1003 Form"); obtain a credit bureau report on the applicant; submit the l003 Form to the Decision Underwriter system to determine the applicant's eligibility; and lock the loan rate for applicants, in particular states in which the individuals did not hold a license.

WHEREAS, the Multi-State Examination revealed that at times during the examination period, MAC's written policy permitted individuals unlicensed in particular states, to complete a worksheet developed by MAC which, when completed by the unlicensed individual, was transferred to the ILD and forwarded to a licensed MLO for signature on the 1003, in violation of the States' mortgage originator licensing requirements.

WHEREAS, the Multi-State Examination revealed that MAC tracked the identity of the individual unlicensed in particular states for compensation purposes, and further, that MAC compensated the unlicensed individuals for the loan origination.

WHEREAS, the Multi-State Examination revealed that MAC violated certain State reporting requirements.

WHEREAS, the Multi-State Examination revealed that MAC failed to adequately supervise mortgage loan ·solicitation and origination activities.

WHEREAS, the Multi-State Examination revealed that MAC lacked the proper internal controls necessary to oversee its mortgage origination operations.

WHEREAS, the Multi-State Examination revealed that MAC failed to maintain supervision and control over mortgage originators and failed to keep adequate records of the unlicensed individual's original documents, files and records.

WHEREAS, the Multi-State Examination revealed that MAC engaged in prohibited business practices by originating loans through the unlicensed individuals.

WHEREAS, the Multi-State Examination alleged that MAC displayed negligence and incompetence in the mortgage business by originating loans through individuals who did not hold a license.

WHEREAS, the Multi-State Examination revealed that MAC violated the statutory sections of the State Mortgage Regulators summarized in Appendix A.

WHEREAS, the Parties now seek to resolve by mutual agreement all issues raised during the Multi-State Examination.

AGREEMENT

1. Compliance. Upon the Effective Date of this Order, MAC shall:

a. Ensure that: (i) all mortgage loans are originated by MLOs who are properly licensed in the state in which the MLO conducts busi11ess; and (ii) all mortgage applications are taken and signed by the licensed MLO conducting the application interview;

b. Ensure that all policies, procedures and controls permit only licensed individuals to engage in mortgage origination activities. MAC assures the State Mortgage Regulators that this is the case and that its ILD no longer exists;

c. Ensure that its record-keeping complies with the laws in the State Mortgage Regulators' jurisdictions;

d. Ensure that all mortgage applications are taken and signed by.a licensed MLO conducting the application interview; and

e. Ensure that all records originated by MAC in the course of business are preserved and retained in a manner as prescribed by applicable State and Federal laws.

2. Internal Control Plan. Within ninety (90) days of the Effective Date of this Order, MAC shall submit an acceptable internal control plan (the "Plan") to the State Mortgage Regulators which sets forth at a minimum policies and procedures to:

a. Ensure that MAC's compliance department is managed by qualified managers who shall have responsibility for all consumer compliance and related matters, including, but not limited to, monitoring the Corporation's compliance and ensuring that corrective action is taken to address all compliance violations relating to and/or set forth in the Report;

b. Provide for adequate training to applicable staff persons conducted by qualified and trained personnel, which includes, but is not limited to, proper instruction, adequate supervision and ongoing training to ensure proper implementation and execution of the revised policies and procedures implemented pursuant to this Order;

c. Identify the type and number of senior management and officer personnel necessary to manage adequately and supervise properly the Corporation's mortgage business activity and the compliance department; ensure that each individual identified possesses the ability, experience, and other qualifications necessary to competently perform present and anticipated duties, to follow and enforce MAC's revised policies and procedures and Plan adopted pursuant to this Order; and confirm .the level of staffing needed to conduct competently the Corporation's operations affecting the States' consumers;

d. Develop, implement and maintain technology to prevent unlicensed individuals from submitting any consumer information including but not limited to: 1003 Forms; obtaining a credit bureau report on applicants; submitting the 1003 Form to the Decision Underwriter system to determine the applicants' eligibility; and locking the loan rate for applicants;

e. Ensure an effective system of preventing unlicensed individuals from soliciting, originating and receiving compensation for unlicensed activity;

f. Investigate complaints and other reports from employees, consumers, State or Federal agencies or other individuals alleging that MAC has employees acting in the capacity of an unlicensed mortgage loan originator; and

g. Develop and implement additional internal controls over its mortgage loan origination activities, including revising its policies and procedures to comply with applicable state and federal laws, regulations, and regulatory bulletins.

The State Mortgage Regulators shall make a good faith effort to review the Plan and approve or refuse to approve the Plan within thirty (30) days of the submission of the Plan. If the State Mortgage Regulators do not approve the ·Plan, the State Mortgage Regulators shall provide comments in a coordinated response on why the Plan is unacceptable and give MAC the opportunity to resubmit the Plan with the appropriate changes. The submission process shall continue unless and until such time as the State Mortgage Regulators approve a Plan. Once approved, MAC shall swiftly implement and comport with the approved Plan, provided that nothing in this Order shall prohibit MAC from adopting such additional procedures and safeguards above and beyond those required by the approved Plan, nor shall subsequent compliance with the approved Plan relieve MAC or its owners, officers, and/or directors from their lawful obligations under state or Federal law or to Shield them from liability for subsequent violations of law which may be perpetrated by themselves, their agents, or employees.

3. Fine/Civil Money Penalties. MAC shall pay a civil money penalty in the amount of three million dollars ($3,000,000) which shall be apportioned among the State Mortgage Regulators in equal shares. Payment shall be made as follows:

a. The civil money penalty shall be due in equal monthly installments on or before the last day of each month for a period of twelve (12) months until the civil money penalty is satisfied in full. The first payment shall be due upon execution of this Order, and the second payment shall be due on or before June 30, 2011.

b. The payments submitted pursuant to Paragraph 3(a) of this Order must be submitted in accordance with the payment instructions provided by each of the States.

c. In the event that MAC fails to submit any payment(s) set forth in this Order, in the amounts specified herein and in accordance with the applicable deadlines, MAC agrees that the Corporation will not object to the State(s) submitting a claim(s), nor attempt to defend or defeat such authorized claim(s), for any unpaid amount(s) against any surety bond(s) that MAC may maintain in such State(s) as a condition of maintaining the Corporation's mortgage license(s).

4. External Audit. Within thirty (30) days of the Effective Date of this ·Order MAC shall identify an independent auditing firm ("Auditing Firm") to, at MAC's expense, conduct a review of all mortgage loan applications taken from September 1, 2010 through March 31, 2011. MAC shall obtain the prior written approval from the State Mortgage Regulators of the Auditing Firm proposed by MAC (the "Approval Date") before such engagement and review is initiated. Within thirty (30) days of the Approval Date, MAC shall engage the Auditing Firm and the Auditing Firm's engagement and review shall commence.

a. The scope of the Auditing Finn's review shall address and include, but shall not be limited to, the following: assess compliance with state mortgage licensing laws and rules, including application completion procedures; verification and due diligence procedures; internal policies and quality control procedures; books and records retention, and document destruction procedures, all relative to unlicensed loan activity.

b. The Auditing Firm shall prepare and submit to the State Mortgage Regulators and MAC a written report detailing the auditor's findings (the "Audit Report") within ninety (90) days of the Approval Date.

c. The Auditing Finn shall continue to review loan transactions for a period of time of eighteen (18) months from the date that the Auditing Firm, begins its review. The Auditing Firm's engagement letter shall set forth a reasonable and acceptable sampling procedure which will be applied to complete the review for the referenced review period. It being understood that the Auditing Firm shall agree to prepare and submit a monthly report to the State Mortgage Regulators and MAC· describing any violations of law observed during the preceding month so that the States may respond to any such conditions in a timely manner.

d. All reports prepared by the Auditing Firm pursuant the provisions of this Paragraph shall be delivered to each State Mortgage Regulator's designee as identified in a cover letter issued to MAC and shall be considered part of the Examination-related material and considered confidential.

e. MAC may submit a written request to the State Mortgage Regulators to amend the provisions of paragraph 4(c) of this Order based on the findings of the Audit Report completed pursuant to the provisions of paragraph 4(b) or on the findings of any report provided pursuant to paragraph 4(c). The State Mortgage Regulators shall have sole discretion, based on their review of such request, to determine whether to modify the review provided for in paragraph 4(c) in whole or in part.

5. Refunds to Borrowers. Within ninety (90) days of the Effective Date of this Order, to the extent not already completed to the satisfaction of the New York Banking Department, MAC shall refund the following fees collected on transactions originated by unlicensed individuals: application fees, commitment fees, processing fees, underwriting fees, bona fide origination and discount points, and yield spread premiums to borrowers residing in New York. Further, MAC shall provide evidence of refunds made to New York borrowers that is satisfactory to the New York State Banking Department. MAC shall refund all fees charged on transactions originated by unlicensed individuals and identified in the Audit Report within ninety (90) days after issuance of the Audit Report.

6. General Compliance: Upon the Effective Date of this Order, MAC shall establish, implement and maintain procedures to ensure that the Corporation has complied with all regulatory requirements imposed by each individual State Mortgage Regulator pursuant to the provisions of the Multi-State Examination.

GENERAL PROVISIONS

7. Effectiveness. This Order shall become effective immediately upon the date of its execution by the State Mortgage Regulators ("Effective Date").

8. Consent. MAC hereby knowingly, willingly, voluntarily and irrevocably consents to the execution of this Order (without any admission of liability) pursuant t? the authority of the State Mortgage Regulators in each State and agrees that it understands all of the terms and conditions contained herein. MAC by voluntarily entering into this Order waives any right to a he1lli.ng or appeal concerning the terms, conditions and/or penalties set forth in this Order.

9. Public Record. The provisions of this Order shall become public upon the Effective Date of this Order.

10. Entire Agreement. This Order contains the whole agreement between the Parties. There are no other terms, obligations, covenants, representations, statements, conditions or otherwise, of any kind whatsoever concerning this Order.

11. Binding Nature. The terms of this Order shall be legally binding upon MAC's officers, owners, directors, employees, heirs, successors and assigns. The provisions of this Order shall remain effective and enforceable except to the extent that, and until such time as, any provisions of this Order shall have been modified, terminated, suspended, or set aside, in writing by mutual agreement of the State Mortgage Regulators collectively and MAC.

12. Counsel. This Order is entered into by the parties upon full opportunity for legal advice from legal counsel.

13. Privilege. None of the Parties hereto waives or intends to waive any applicable attorney-client, work product privilege, confidentiality, or any other protection applicable to any negotiations, statements, production of records, information or proceedings relative to this Order. This provision shall survive terminating of this Order.

14. Limited Release. This' Order is the complete document representing the resolution of only the matters and violations noted in the Multi-State Examination and the Multi­ State Report of Examination. It is the express purpose and intention of the parties that MAC will not be subject to any related examination or enforcement, claims or actions by the State Mortgage Regulators arising out of any mortgage loan activities that fall within the scope and time period covered by the Multi-State Examination excepting only the matter of any potential refunds that may be sought by the State Mortgage Regulators on behalf of consumers or as a result of the audit process described above in Paragraph 4 of this Order. It being understood that the State Mortgage Regulators reserve all of their rights, duties, and authority to enforce all statutes, rules and regulations under their jurisdictions, against MAC regarding any mortgage loan activities falling beyond either the subject matter scope of the Multi-State Examination or outside the time period covered by the Multi-State Examination.

15. Other Enforcement Action.

a. Notwithstanding any other relief to the contrary, if MAC fails to comply with the terms and conditions of this Order the State Mortgage Regulators may pursue any action allowed by law concerning the conduct and violations stated in this Order, including, but not limited to, revocation of any license of MAC, imposition of any fine against MAC, or any other remedy allowed by law.

b. MAC acknowledges and agrees that this Order is only binding on the State Mortgage Regulators and not any other local, state or federal agency, department or office regarding matters within this Order.

16. Authorization. The Parties below are authorized to execute this Order and legally bind their respective parties.

17. Counterparts. This Order may be executed in separate counterparts, by facsimile or by PDF.  A copy of the signed Order will be given the same effect as an originally signed Order.

18. Titles. The titles used to identify the paragraphs of this Order are for the convenience of reference only and do not control the interpretation of this Order.

WHEREFORE, in consideration of the foregoing, including the recital paragraphs, the State Mortgage Regulators and MAC intending to be legally bound do hereby execute this Consent Agreement and Order.

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