Consumer Corp. d/b/a Consumer One Mortgage - Settlement Agreement
State of New York Banking Department
In the Matter of
Consumer Corp. d/b/a Consumer One Mortgage
A Registered Mortgage Broker Pursuant to
Whereas, Consumer One Corp. d/b/a Consumer One Mortgage ("Consumer One"), with headquarters at 154-2 Remington Boulevard, Ronkonkoma, NY, 11779, was granted a registration on July 8, 2003 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;
Whereas, on April 9, 2007, the New York State Banking Department (“the Banking Department”) received a complaint from a consumer stating that a relative paid cash to apply for a mortgage loan from Consumer One located at 280 Medford Avenue, Patchogue, NY, 11770;
Whereas, on April 16, 2007, an examiner from the Banking Department initiated an examination of the office located at 280 Medford Avenue, Patchogue, NY, 11770 and found that a loan officer employed by Consumer One (‘the employee”) accepted and/or processed at least 10 residential mortgage loans procured from this location;
Whereas, 280 Medford Avenue, Patchogue, NY, 11770 is not a location that was authorized by the Banking Department for Consumer One to solicit and/or process residential mortgage loans on New York properties;
Whereas, Section 590.2(c) of the Banking Law requires a registrant to apply for authority to open and maintain each branch office located in New York State;
Whereas, the unlicensed location resulted from Consumer One’s failure to maintain or implement internal measures appropriate under the circumstances to prevent the employee from conducting business at unlicensed locations;
Whereas, Consumer One failed to implement proper policies and procedures for monitoring activities of the branch employees, including ensuring that individuals do not engage in origination activities at unauthorized locations;
Whereas, Consumer One failed to provide appropriate training for its employees regarding establishment of branch locations;
Whereas, the Superintendent and Consumer One mutually agree to resolve such violation by the imposition of a fine in the aggregate amount of $5,000.
NOW, THEREFORE IT IS STIPULATED AND AGREED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS:
THAT, the registrant agrees as follows:
- Consumer One, fully understands the terms and conditions of the Settlement Agreement (the “Agreement”), freely and voluntarily waives its right to a hearing on the violation cited and any and all appeals relating to this matter;
- Consumer One will take all necessary steps to ensure compliance with all applicable federal and state laws and regulations relating to its mortgage business;
- Consumer One agrees to pay a fine in the amount of $5,000 payable upon execution of this Agreement. Payment shall be made by electronic transfer, in immediately available funds, pursuant to transfer instructions received from the Banking Department;
- Consumer One agrees to designate one or more central location(s), and a backup location, to store all closed, cancelled, withdrawn, and denied loan files;
- Within 90 days of the date of this order, Consumer One shall develop and maintain a formal written compliance manual designed to ensure compliance with all applicable federal and state laws, regulations, and supervisory requirements. The manual shall, at a minimum, address:
- The designation of an individual responsible for monitoring compliance with all applicable laws, regulations, and supervisory requirements;
- A compliance training program for employees and independent contractors.
- Branching procedures and net branching restrictions;
- Record retention and storage;
- The handling, safeguarding, and destruction of confidential customer information pursuant to privacy and credit reporting laws; and
- Consumer credit disclosure requirements.
- Within ninety (90) days of the execution of this Agreement, Consumer One shall submit a draft copy of its compliance manual to the Banking Department;
- Within one hundred and twenty (120) days of the execution of this Agreement, Consumer One shall submit a final copy of its compliance manual, approved by an authorized officer, to the Banking Department;
- Consumer One fully understands the requirements of this Agreement and that failure to meet the above conditions and timeframes shall result in the Banking Department suspending its mortgage broker registration and scheduling a hearing for revocation;
- All communications regarding this Settlement Agreement shall be sent to:
- The Settling Parties acknowledge that entering into this Settlement 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 not relating to this Settlement Agreement or any criminal aspect of the concerned matters in this Settlement Agreement.
- No extension or waiver of the terms of this Settlement Agreement shall be binding on the Banking Department except if in writing and signed by the Superintendent, or his designee.
- Each provision of this Settlement Agreement shall remain effective and enforceable until stayed, modified, terminated, or suspended in writing by the Superintendent, or his designee.
- The effective date of this Settlement Agreement is the date on which it is executed by the Superintendent or his Deputy.
- The provisions of this Settlement Agreement are not confidential.
Ms. Rholda L. Ricketts Mr. Anthony Peter Muratore
Deputy Superintendent of Banks President
Mortgage Banking Division Consumer One Corp. d/b/a
New York State Banking Department Consumer One Mortgage
One State Street 154-2 Remington Boulevard
New York, NY 10004 Ronkonkoma, NY 11779
Agreed to and accepted by:
Consumer One Corp. d/b/a
Consumer One Mortgage
Rholda L. Ricketts
Deputy Superintendent of Banks
State of New York Banking Department