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The Mortgage Zone, Inc. - Settlement Agreement

State of New York Banking Department


In the Matter of

The Mortgage Zone, Inc.
A Mortgage Broker Registered pursuant to
Article XII-D of the Banking Law

- Respondent -

SETTLEMENT AGREEMENT

                                         

WHEREAS, The Mortgage Zone, Inc. ("Mortgage Zone"), with headquarters at 360 Vanderbilt Motor Parkway, Hauppauge, NY 11788, was granted a registration on June 11, 2002 to engage in business as a registered mortgage broker pursuant to Article XII-D of the New York Banking Law (the "Banking Law") by the Superintendent of Banks (the "Superintendent") of the State of New York; and

WHEREAS, Mortgage Zone has violated Part 38.2(a) of the General Regulations of the Banking Board in that mortgage brokers who advertise their business in New York in print or electronic media must include the legend "Registered Mortgage Broker-NYS Banking Department" or words to like effect therein; and

WHEREAS, Mortgage Zone has violated Part 38.2(b) of the General Regulations of the Banking Board in that any advertisement by a mortgage broker, mortgage banker or exempt organization in print or electronic media must indicate the name of the entity and a street address of any one of its offices in New York State; and

WHEREAS, Mortgage Zone has violated Part 38.2(d) of the General Regulations of the Banking Board in that any advertisement by a mortgage broker shall not contain language that indicates or suggests that the mortgage broker will fund a mortgage loan; and

WHEREAS, Mortgage Zone has violated Part 38.2(e) of the General Regulations of the Banking Board in that  no mortgage broker, mortgage banker or exempt organization shall fraudulently  or deceitfully  advertise or misrepresent the terms, conditions or charges incidental to a mortgage loan in any advertisement; and

WHEREAS, after being informed of the above mentioned violations, Mortgage Zone expressed the wish to address the violation without recourse to a hearing and to enter into a Settlement Agreement on the terms and conditions hereafter set forth:

NOW, THEREFORE IT IS STIPULATED AND AGREED BY THE PARTIES HERETO AS FOLLOWS:
THAT, Mortgage Zone agrees as follows:

  1. Mortgage Zone, fully understanding the terms and conditions of the Settlement Agreement (the “Agreement”), freely and voluntarily waives its right to a hearing on the violations cited and any and all appeal relating to this matter.
  2. Mortgage Zone will take all necessary steps to ensure compliance with all applicable federal and state laws and regulations relating to its mortgage business, including but not limited to Article XII-D of the Banking Law; General Regulations of the Banking Board Parts 38, 39 and 41; and the Superintendent’s Regulations Part 410.
  3. Mortgage Zone agrees to pay a fine in the amount of $4,000. Payment shall be made by electronic transfer, in immediately available funds, pursuant to transfer instructions received from the Banking Department.
  4. Mortgage Zone will develop formal written advertisement policies and procedures designed to ensure compliance with all applicable federal and state laws, regulations and supervisory requirements. The policies and procedures shall, at a minimum, address:
    1. The designation of an individual responsible for monitoring compliance with all applicable laws, regulations and supervisory requirements; and
    2. The development of a program designed to keep Mortgage Zone current on any changes or revision to all applicable laws, regulations and supervisory requirements.
  5. Within ninety (90) days of the effective date of this Agreement, Mortgage Zone will submit draft copies of its advertisement policies and procedures to the Banking Department;
  6. Within one hundred twenty (120) days of the effective date of this Agreement, Mortgage Zone will submit final copies of its advertisement policies and procedures, approved by an authorized officer, to the Banking Department;
  7. All communication regarding this Agreement shall be sent to:

Rholda L. Ricketts 
Deputy Superintendent of Banks
Mortgage Banking Division
New York State Banking Department
One State Street
New York, NY 10004

Mr. Alan Breecker
The Mortgage Zone, Inc.
360 Vanderbilt Motor Parkway
Hauppauge, NY 11788

  1. The provisions of this Agreement shall not bar, estop or otherwise prevent the Superintendent, or any state or federal agency or department, from taking any other action affecting the Registrant, any of its current or former officers, directors, employees, or insiders, or their successors or assigns with respect to the matters relating to this Agreement or other matters not relating to this Agreement.
  2. No extension or waiver of the terms of this Agreement shall be binding on the Banking Department unless it is in writing and signed by the Superintendent or his Deputy.
  3. Each provision of this Agreement shall remain effective and enforceable until stayed, modified, terminated or suspended in writing by the Superintendent or his Deputy.
  4. The effective date of this Agreement is the date on which it is executed by the Superintendent or his Deputy.
  5. The provisions of this Agreement are not confidential.

Agreed to and accepted by:

Date: __________________ 
By: ____________________
Alan Breecker
President/Owner
The Mortgage Zone, Inc.

Date: __________________
By: ____________________
Rholda L. Ricketts
Deputy Superintendent of Banks
New York State Banking Department

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