Blog Enforcement Watch February 27, 2015

Mortgage Lender Subject to Fees and Injunctive Relief Following State Examination

On February 27, 2015, the Massachusetts Division of Banks and the mortgage lender agreed to a consent order following an examination into a mortgage lender’s level of compliance with applicable Massachusetts and federal statutes. The Massachusetts Division of Banks’ examination found that the bank was in substantial non-compliance with state and federal statutes, and regulations governing the conduct of mortgage lenders in Massachusetts. As a result of the examination findings, the bank was required under the consent order to (1) ensure it would not conduct business from an unapproved office and would pay $5,000 in administrative fees for business activity at an unapproved location; (2) would expand its independent audits; (4) monitor the distribution of mortgage lending, and focus on loans in low- and moderate- income census tracts; (5) provide notices at the time of denial pursuant to Massachusetts law; and (6) provide privacy protection information. The lender also agreed to provide written status updates to the Division of Banks.