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Casco Bay Mortgage, Inc. and Bryan G. Moore - Decision and Order
September 7, 2011
An administrative hearing was held on Wednesday, August 31, 2011 based on allegations contained in a petition filed by the staff of the Bureau of Consumer Credit Protection.
Bryan G. Moore appeared at the hearing, on behalf of himself personally (as a former registered loan officer and a current applicant for a mortgage loan originator license), as well as in his capacity as principal of Casco Bay Mortgage, Inc., a licensed loan broker.
In response to questions from the hearing officer, Mr. Moore stated that he understood he had the right to be represented by an attorney, but that he was choosing to represent himself and his company.
Staff attorney Eric Wright presented the case for the Bureau?s enforcement staff.
Testimony was taken from Bureau employees Emilie Sinclair and Julie Franchetti; from home-sellers Adolph and Joan Holmes; from Gateway Title of Maine, Inc.?s Scarborough Office Manager Melissa A. Cummings; from Caldwell Banker Residential Brokerage?s Portland employee Candace Muehleisen (by affidavit); and from the Respondent, Mr. Moore.
The Bureau?s petition alleged that Mr. Moore engaged in loan origination activities after January 1, 2011 without having completed the legal requirements to qualify as a mortgage loan originator; specifically, without having passed the nationally-oriented portion of the NMLS (Nationwide Mortgage Licensing System) test. The petition further alleged that Casco Bay Mortgage, as a licensed loan brokerage company, failed to comply with portions of an earlier order of the Bureau, dated April 13, 2011, which required payment of a total of $1,982.30, consisting of costs of a routine compliance examination completed on 2010, the reasonable costs of holding an earlier administrative hearing on April 7, 2011, and a civil penalty.
In the course of the hearing, and after hearing full or partial testimony from several witnesses, Mr. Moore admitted to the substance of the allegations against him. He agreed that he had not complied with the provisions in the April 13, 2011 Order. In addition, he provided some context for several of his statements and e-mail messages that the Bureau staff and several witnesses entered into evidence. He stated that he did not intend to violate the mortgage loan originator licensing requirements. He stated that while he knew he did not hold an individual mortgage loan originator license, he mis-read or misinterpreted the Bureau?s September 28, 2010 ?Order Governing Interim Procedures? which provided instructions to mortgage loan originator applicants.
That procedural order made clear that applicants for mortgage loan origination were required to pass the national test before January 1, 2011. Applicants were provided with additional time, until April 1, 2011, to pass a separate Maine-specific test, given the relatively late availability of that test.
The Respondent testified that he thought the deadline for both the national test and the state-specific test was April 1, 2011. He further testified that all loan origination business undertaken by himself as an originator and by Casco Bay Mortgage as a licensed loan broker occurred prior to that April 1 date.
Respondent testified that he understands at the present time he is not able to bring the necessary levels of concentration and professionalism to bear in order to operate a licensed loan brokerage company or perform the duties and obligations of a licensed mortgage loan originator, due to a complex and time-consuming marital and custody dispute in which he has been enmeshed during much of the past year. He testified that he has moved out of his house and out of his former neighborhood. He has expended large amounts of energy, time and financial resources in this conflict, he testified, but he said he expects the matter may reach resolution in the near future. He testified that this situation led him to 1) not pay the costs of the routine compliance examination in 2010, as well as 2) not attend the April 7, 2011 hearing; 3) ignore the April 13, 2011 Decision and Order, including its requirements to payment of costs and penalties; and 4) continue acting in 2011 as a mortgage loan originator without being licensed to do so, until he stopped immediately at the telephoned direction of Bureau staff attorney Eric Wright.
Finally, at the hearing the Respondent offered to cease and desist from all mortgage loan originator activity, and to voluntarily return his company?s loan broker license. In fact, he sent a letter to the Bureau within a few days after the hearing in which Respondent stated that he would not act as a mortgage loan originator. The envelope also contained his company?s original loan broker license.
FINDINGS AND ORDER
1) I find that the Bureau?s ?Order Governing Interim Procedures? dated September 26, 2010 was clear and unequivocal in its statement that ?Starting January 1, 2011, no mortgage loan originator may originate loans without having passed the national test.? Failure to understand that limitation or to contact the Bureau for additional clarification demonstrated a lack of financial responsibility, character and fitness to operate a loan brokerage company, and to obtain or retain a license as an individual mortgage loan originator.
2) I find that failure to pay the routine costs of the 2010 compliance examination and failing to respond to communications from the Bureau demonstrated a lack of financial responsibility, character and fitness to operate a loan brokerage company, and to obtain or retain a license as an individual mortgage loan originator.
3) I find that failure to comply with the Decision and Order dated April 13, 2011 demonstrated a lack of financial responsibility, character and fitness to operate a loan brokerage company, and to obtain or retain a license as an individual mortgage loan originator.
4) I find that operating as a mortgage loan originator in 2011 without having passed the national NMLS test demonstrated a lack of financial responsibility, character and fitness to operate a loan brokerage company, and to obtain or retain a license as an individual mortgage loan originator.
Therefore, I ORDER the following:
1) The application for a mortgage loan originator of Respondent Bryan G. Moore is hereby suspended indefinitely. If Mr. Moore wishes to initiate the process of becoming licensed as a mortgage loan originator, he must first schedule a meeting with staff of the Bureau and explain to the satisfaction of Bureau staff how he has complied with all outstanding orders involving himself and Respondent Casco Bay Mortgage, and demonstrate to the satisfaction of Bureau staff that his circumstances have changed sufficient to warrant being permitted to begin the qualification and application process.
2) The loan broker license of Casco Bay Mortgage has been surrendered, and is hereby suspended indefinitely. If Mr. Moore or anyone else on behalf of Casco Bay Mortgage wishes to initiate the process of reinstating the loan broker license, that individual must first schedule a meeting with staff of the Bureau and explain to the satisfaction of Bureau staff how all outstanding orders involving Casco Bay Mortgage have been complied with, and must demonstrate to the satisfaction of Bureau staff that circumstances have changed sufficient to warrant the company being permitted to begin the loan broker application process.
3) Within 45 days of the date of this Order, all conditions, remedies, costs and penalties set forth in the April 13, 2011 Decision and Order must be complied with and satisfied, including responding to the 2010 Report of Examination, paying the full costs of that examination and the full or a negotiated late fee; a civil penalty of $500; and the costs of the first hearing of $500; and I authorize the Bureau staff to file a claim against the surety bond of Casco Bay Mortgage if these amounts remain unpaid beyond the 45-day period stated above;
4) Within 45 days of the date of this Order, Respondents Casco Bay and Bryan Moore must pay additional amounts resulting from the August 31, 2011 testimonial hearing consisting of a civil penalty of $750, and costs of the enforcement proceeding of $1,250; and I authorize the Bureau staff to file a claim against the surety bond of Casco Bay Mortgage if these amounts remain unpaid beyond the 45-day period stated above.
| Date: September 7, 2011 | /s/William N. Lund |
| William N. Lund | |
| Hearing Officer |
NOTICE OF APPEAL
Any party aggrieved by this decision may appeal to the Superior Court pursuant to 9-A M.R.S.A. ?6-108(1) and 5 M.R.S.A. ?1001 et seq. within 30 days of receipt of this decision. Any other person aggrieved shall have 40 days from the date the decision was rendered to petition for review. table>