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American Trust Mortgage, Inc. and Stephanie R. Sullivan - Consent Order
March 4, 2013
WHEREAS American Trust Mortgage, Inc. (?the company?), of Swampscott, MA holds a loan broker license issued by the State of Maine Bureau of Consumer Credit Protection (?the Bureau?); and
WHEREAS Paul Mignone, president of the company, holds an individual mortgage loan originator license issued by the Bureau; and
WHEREAS Stephanie R. Sullivan, a minority shareholder of the company and James Tracy, director of operations of the company, do not currently hold individual mortgage loan originator licenses issued by the Bureau but may reasonably be expected to apply for such licenses in the future; and
WHEREAS a recent compliance examination of the books, records and papers of the company by examiners employed by the State of New Hampshire revealed evidence gathered from the company?s shred-bin that an employee or employees of the company had altered consumer mortgage loan documents, fabricated financial and employment documents supporting a mortgage loan application, and misrepresented the identity of the individual mortgage loan originator who performed functions requiring a license by ?whiting out? the name of an unlicensed mortgage loan originator with correction fluid and replacing it with the name of a licensed mortgage loan originator; and
WHEREAS additional investigation conducted by New Hampshire regulators and by regulators from the Commonwealth of Massachusetts revealed that one or more loan files containing altered documents prepared by employees of American Trust Mortgage, Inc. for whom the individual Respondents herein had responsibility to manage and oversee had been presented to lenders or investors for funding, investing and/or servicing; and
WHEREAS Stephanie R. Sullivan was not found to have participated in any of the activities raised in the examination or investigation but, instead, owned a minority share of the company; and
WHEREAS upon being presented with the preliminary findings the Respondents cooperated fully with regulators from New Hampshire and Massachusetts, and took immediate disciplinary action against the individuals involved; and
WHEREAS the Commonwealth of Massachusetts responded to their examiners? findings by issuing ?Findings of Fact and Temporary Order to Cease and Desist, & Order to Show Cause and Notice of Right to a Hearing,? ordering the company and the named individuals to cease taking any new mortgage loan applications, to place any consumer funds in escrow and to transfer existing, pending files to licensed loan brokers or licensed lenders; and
WHEREAS the State of New Hampshire likewise responded to the findings by entering into a Consent Order with the Respondents in which all pending loan files are to be placed with licensed entities; the company?s loan broker license is revoked; Paul Mignone surrenders his mortgage loan originator license and agrees never to apply for such a license in the future; Stephanie R. Sullivan surrenders her license as a mortgage loan originator; James Tracy agrees never to apply for any lending or brokerage-related license in the future; and the company agrees to disgorge certain commissions and pay examination fees, costs and an administrative penalty of $10,000; and
WHEREAS Maine regulators met with regulators from Massachusetts and New Hampshire in late December, 2012 to share information and to coordinate regulatory enforcement procedures, and subsequently conducted their own investigation on site at the company?s offices to determine whether the mortgage loan files of any Maine residents were affected by the altering of documents, and found no evidence of altered documents or other improprieties; and
WHEREAS Maine regulators, both independently and by virtue of the multi-state Nationwide Mortgage Licensing System (NMLS) work cooperatively with other states and Commonwealths, honoring other states? findings and sanctions; and
WHEREAS President, Paul Mignone cooperated fully with the Maine regulators during their examination;
NOW THEREFORE, the parties enter into this Consent Order for purposes of resolving this matter; Respondents waive their right to a hearing or appeal; and the Superintendent of the Maine Bureau of Consumer Credit Protection issues the following Order:
1) The loan broker license of American Trust Mortgage, Inc. is hereby revoked;
2) Paul J. Mignone shall surrender his Maine Mortgage Loan Originator License, and he agrees never to apply for a lender or loan broker-related license in the State of Maine in the future; and agrees to disclose this order to Maine regulators in the event of any renewal or other application for a Maine Mortgage Loan Originator License;
3) Stephanie R. Sullivan agrees not to apply for a lender- or loan broker-related license in the State of Maine in the future without disclosing to Maine regulators this order;
4) James Tracy agrees never to apply for any lender- or loan broker-related licensed in the State of Maine in the future;
5) Respondents shall pay the costs of investigation of $2,500; and
6) Respondents shall cooperate with all requests for document production and cooperation in the future for the benefit of Maine residents.
IT IS SO ORDERED.
| Date: January 10, 2013 | /s/William N. Lund |
| William N. Lund | |
| Superintendent | |
| Bureau of Consumer Credit Protection | |
| Date: March 04, 2013 | /s/Stephanie R. Sullivan |
| Stephanie R. Sullivan | |
| minority shareholder | |