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CONSENT AGREEMENT - Timothy Hogan CSO 5033
August 3, 2007
This document is a Consent Agreement (?the Consent Agreement?) concerning licensure of Timothy P. Hogan as a loan officer in the State of Maine. The parties to the Consent Agreement are Timothy P. Hogan (?Mr. Hogan?), the Maine Office of Consumer Credit Regulation (?the OCCR?) and the Maine Department of Attorney General. The Consent Agreement is entered into pursuant to 9 A M.R.S.A. ?? 2-303 and 6-106 through 6-117 and 10 M.R.S.A. ? 8003(5)(B).
Facts
Since January 2006, Mr. Hogan has been a loan officer licensed pursuant to 9-A M.R.S.A. ? 10-201.
Title 9-A M.R.S.A. ? 10-201 of the Maine Consumer Credit Code, 9 A M.R.S.A. ? 1-101 through 11-122, requires that loan officer may not be licensed unless the Director of the OCCR ?finds that the financial responsibility, character and fitness of the applicant?warrant belief that the business will be operated honestly and fairly within the purposes of [the Consumer Credit Code].?
Prior to November 2005 to the present time, Mr. Hogan has been associated with Weber Mortgage Co., a duly-registered credit services organization/loan broker with offices in Bangor, Maine. Mr. Hogan has been responsible for origination of home mortgage loans.
From November 2005 to January 2006, Mr. Hogan handled the loan application of Ms. Susan Blake of Rockport, Maine. In the course of that transaction, Mr. Hogan provided Ms. Blake Three Thousand Dollars ($3,000) for deposit in her checking account, to overstate Ms. Blake?s financial ability to qualify for a loan. Mr. Hogan arranged to retrieve the monies he provided Ms. Blake after the loan closing. He received a commission for closing the loan.
To resolve issues raised by conduct described in ? 4 above, Mr. Hogan enters into this Consent Agreement with the OCCR.
Covenants
Mr. Hogan admits the conduct described in ? 4 above and that he has failed to conform to and comply with provisions of the Consumer Credit Code, including standards set forth in 9-A M.R.S.A. ? 10-201.
The Director of the OCCR finds that, by his admitted conduct, Mr. Hogan has failed to conform to and comply with provisions of the Consumer Credit Code, including standards set forth in 9-A M.R.S.A. ? 10-201.
Effective August 15, 2007 and until November 28, 2007, the Office of Consumer Credit Regulation suspends Mr. Hogan?s licensure as a loan officer.
After August 15, 2007 and until November 28, 2007, Mr. Hogan will not act as a loan officer. He shall not accept, originate, consider, negotiate, solicit, arrange for or obtain mortgage loans. He shall not have any direct contact with mortgage applicants or lenders. In conjunction with the mortgage lending business, he shall engage only in purely administrative or clerical tasks. Persons who approach Mr. Hogan for service after the execution of this Consent Agreement shall be referred to other persons, and Mr. Hogan shall accept no compensation for such referrals. Until November 28, 2007, he shall provide a copy of this Consent Agreement to any licensee of the OCCR with whom he is associated in any way. If he has any doubt about the permissibility of action by him, he shall consult with Kristine M. Fournier, Senior Credit Examiner at the OCCR, who may provide written guidance as deemed appropriate.
Except for activities specifically approved in ? 9 above and activities as a loan officer after November 28, 2007, Mr. Hogan shall not otherwise engage, directly or indirectly, for himself or for others, in the financial services industry.
Beginning in August 2007 and until August 2008, Mr. Hogan shall file written monthly reports of his activities related to the mortgage lending industry. Mr. Hogan shall file the reports between the 15th and 20th day of each month. Subsequent to August 2008 and until August 2009, the reports shall be quarterly and filed on a schedule established by the OCCR. Reports shall include information about Mr. Hogan?s professional activities deemed relevant by the OCCR. The reports shall explain his activities related to the mortgage lending industry during the preceding month. Reports shall be submitted to Kristine M. Fournier, Senior Consumer Credit Examiner at the OCCR. Reports shall be detailed enough for the OCCR to understand what specific tasks Mr. Hogan undertook. Mr. Hogan shall respond to any request from the OCCR for additional information within ten days of receiving such a request.
From the date of the Consent Agreement to August 15, 2007, Mr. Hogan shall wind up any pending mortgage lending business. Business during that time shall be confined strictly to those matters required to protect the interests of persons who are clients as of the time of this Consent Agreement and other persons to whom Mr. Hogan or Weber Mortgage is legally obligated. Persons who approach Mr. Hogan for service after the execution of this Consent Agreement shall be referred to other persons, and Mr. Hogan shall accept no compensation for such referrals.
No later than noon July 25, 2007, Mr. Hogan shall provide the OCCR with an accounting of the pending business referenced in ? 12 above. The accounting will list the names of all clients and will explain the disposition of any funds, fees, prepayments, deposits or other amounts paid by those clients.
As part of the winding up of the pending business referenced in ? 12 above, Mr. Hogan shall provide for the safekeeping of client records with Weber Mortgage or another duly-licensed loan broker, so as to ensure the records? preservation and availability.
During the winding up of the pending business referenced in ? 12 above, Mr. Hogan shall ensure that the OCCR is informed frequently of arrangements being made to fulfill the requirements of this Consent Agreement. All arrangements shall be subject to approval by the OCCR.
Upon the completion of the winding up of the pending business referenced in ? 12 above, Mr. Hogan shall provide the OCCR with a final accounting of that business. The accounting will explain the status of client accounts open as of the date of this Consent Agreement, the disposition of all funds relating to each client account open as of the date of this Consent Agreement and the location of all relevant records. The final accounting shall contain any other information deemed relevant by the OCCR.
All costs associated with the winding up of the pending business referenced in ? 12 above and compliance with this Consent Agreement shall be borne by Mr. Hogan.
No later than July 25, 2007, Mr. Hogan shall pay the OCCR investigative costs of Five Hundred Dollars ($500). Payment shall be by certified check or money order made out to ?Maine Office of Consumer Credit Regulation? and shall be delivered to Kristine M. Fournier, Senior Consumer Credit Examiner at the OCCR.
No later than April 30, 2008, Mr. Hogan shall pay the OCCR a monetary penalty of Fifteen Thousand Dollars ($15,000) for conduct admitted in ? 6 above. Payment shall be by certified check or money order made out to ?Treasurer, State of Maine? and shall be delivered to Kristine M. Fournier, Senior Consumer Credit Examiner at the OCCR.
No later than September 12, 2007, Mr. Hogan shall submit proof to the OCCR that he has satisfactorily completed a pre-approved ethics course. Completion of this course is a requirement distinct from and in addition to any continuing education requirements for maintaining licensure.
Assuming that Mr. Hogan otherwise qualifies for licensure after November 28, 2007, his licensure shall be probationary until August 19, 2009. Conditions of probation shall include compliance with all terms of this Consent Agreement and requests of the OCCR.
From the date of this Consent Agreement to August 19, 2009, Mr. Hogan?s records shall be subject to unannounced inspection by the OCCR, to ensure compliance with this Consent Agreement. The OCCR may exercise whatever supervisory authority deemed necessary to enforce this Consent Agreement and protect the public.
Mr. Hogan shall notify the OCCR immediately of any change in his employment situation or home address.
Failure by Mr. Hogan to comply with any condition or term of this Consent Agreement or his license probation shall make him liable to the State of Maine for a monetary penalty of Seventy-Five Thousand Dollars ($75,000) and permanent license revocation. Such penalties shall be separate from and in addition to any other remedy available pursuant to this Consent Agreement or the law.
Nothing in this Consent Agreement shall be construed to excuse any violation of law by Mr. Hogan.
Nothing in this Consent Agreement shall be construed to excuse any obligation or duty of Mr. Hogan to past, present or future clientele.
Nothing in this Consent Agreement shall be construed to excuse Mr. Hogan from any requirement for maintaining the ability to obtain full licensure, regardless of whether such requirement is addressed herein. For example, among other things, during the period of his license suspension, Mr. Hogan shall be responsible for meeting continuing education requirements.
This Consent Agreement is limited in scope to resolution with the OCCR and no other State or federal government agency. It does not preclude any agency of
State or federal government from pursuing any claim based upon alleged violation of any law other than Consumer Credit Code provisions applicable to matters admitted by Mr. Hogan.This Consent Agreement does not affect the rights of any person not a party hereto.
This Consent Agreement is not subject to appeal.
This Consent Agreement is not subject to amendment, except by written agreement of all parties.
This Consent Agreement is a public record subject to provisions of the Maine Freedom of Access Law, 1 M.R.S.A. ?? 401 through 410.
This Consent Agreement is enforceable by an action in Maine Superior Court.
By his signature on this Consent Agreement, Mr. Hogan indicates that he has read the Agreement, that he understands the Agreement, that he has had an opportunity to consult with counsel before signing the Agreement and that he enters into the Agreement voluntarily and without coercion of any kind from any person.
Signatures
| Dated: July 24th, 2007 | /s/Timothy P. Hogan |
| Timothy P. Hogan | |
| Dated: July 25th, 2007 | /s/James M. Bowie |
| James M. Bowie | |
| Assistant Attorney General |