ORDERS:
ORDER GRANTING PETITION FOR INJUNCTIVE RELIEF
STATEMENT OF THE
CASE
This
matter is before the Administrative Law Court (“ALC”) upon a petition dated December
21, 2007 from the South Carolina Department of Consumer Affairs (Department)
for an order from this Court enjoining Premier Mortgage Funding, Inc. (Respondent)
from engaging in false, fraudulent and deceptive conduct by failing to disclose
material terms in brokering residential mortgages in violation of the Licensing
Requirements Act of Certain Brokers of Mortgages on Residential Real Property
(S.C. Code. Ann. § 40-58-10 et seq.). This Court issued an Order to Answer
Petition for Injunctive Relief and Notice of Hearing for Injunctive Relief dated
January 3, 2008 scheduling a hearing for January 28, 2008 at 2:00 p.m. and ordering that Respondent file an Answer to the Petition on or before January 25, 2008. Additionally, the Court’s Order to Answer Petition for Injunctive Relief
and Notice of Hearing for Injunctive Relief stated that a failure to file an
answer will be deemed to be a default and the matter will be disposed of
adversely to the Respondent’s interests. Respondent failed to file an Answer
and did not appear at the scheduled hearing. After carefully weighing the
evidence, the court finds that the Respondent should be permanently enjoined
from further violations of the Act and other relief sought by Petitioner as
stated below.
FINDINGS OF FACT
Having observed the
exhibits presented at the hearing and closely passed upon their credibility,
the court makes the following Findings of Fact by a preponderance of the
evidence.
On June 26, 2007, Petitioner conducted a compliance review at the Respondent’s licensed location at 455 Saint Andrews Road, Building D, Suite 4-C, Columbia, South Carolina 29210 to determine if Respondent was in compliance with the Act. Based on the results of the review,
Petitioner determined that Respondent was not complying with the Act, in that
Respondent had failed to disclose fees as required by the Act and had engaged
in false, fraudulent and deceptive conduct by failing to disclose material
terms in brokering residential mortgages in further violation of the Act.
Respondent had brokered at least seventeen residential mortgages for consumers
between September 18, 2006 and June 26, 2007 at the above licensed location and
failed to provide disclosures required by the Act. Respondent was notified of
the violations via letter from the Petitioner dated July 9, 2007. Respondent failed to respond to the Petitioner’s letter. Respondent had two special
deposit bonds during the period of the violations, Special Deposit Bond #LPM
7570150 issued by Fidelity and Deposit Company of Maryland in the amount of
$10,000 effective until May 22, 2007 and Special Deposit Bond #9050166 issued
by Washington International Insurance Company in the amount of $10,000 dated
May 22, 2007. Petitioner filed a petition dated December 21, 2007 requesting that this court issue an order:
(1) Assessing Respondent Premier Mortgage Funding, Inc. special deposit bond #LPM 7570150
issued by Fidelity and Deposit Company of Maryland in the amount of $10,000,
and made payable to the Administrator for the state and those affected
consumers who have causes of action against Respondent for violation of S.C.
Code Ann. §§40-58-10 et seq.;
(2) Allowing
Petitioner to hold such monies from special deposit bond #LPM 7570150 issued by
Fidelity and Deposit Company of Maryland for the statutory period until
Petitioner can determine all consumers who may have been affected during the
term of bond #LPM 7570150;
(3) Assessing
Respondent Premier Mortgage Funding, Inc. special deposit bond #9050166
issued by Washington International Insurance Company in the amount of $10,000,
and made payable to the Administrator for the state and those affected
consumers who have causes of action against Respondent for violation of S.C.
Code Ann. §§40-58-10 et seq.;
(4) Allowing
Petitioner to hold such monies from special deposit bond #9050166 issued by
Washington International Insurance Company for the statutory period until
Petitioner can determine all consumers who may have been affected during the
term of bond #9050166;
(5) Revoking the
license of Respondent Premier Mortgage Funding, Inc., permanently pursuant to S.C. Code Ann. § 40-48-80(C);
(6) Assessing
Respondent Premier Mortgage Funding, Inc., an administrative fine of five
hundred ($500.00) dollars for each violation of the Act, pursuant to S.C.
Code Ann. § 40-48-80(C);
(7) That this
Order take effect immediately ; and
(8) Granting
such other relief as may be necessary, just and appropriate.
A hearing was held at 2:00 p.m. on January 28, 2008 and Respondent did not appear.
CONCLUSIONS OF LAW
Based on the forgoing Findings of
Fact, the court concludes the following as a matter of law.
1. Jurisdiction
Jurisdiction
over this case is vested with the South Carolina Administrative Law Court
pursuant to S.C. Code Ann. § 40-58-80 (Supp. 2006) and S.C. Code Ann. §
1-23-600(E) (Supp. 2006).
2. Disclosures
Required for All Mortgage Loans
Under
the South Carolina Licensing Requirements Act of Certain Brokers of Mortgages
on Residential Real Property, a mortgage broker or an originator, must provide
to the borrower disclosures concerning all fees or commissions the broker will
earn for the mortgage loan. Additionally, disclosures are required informing
the borrower of the agency relationship between the broker and the borrower and
an estimate of the closing costs to the borrower for the mortgage loan. See
S.C. Code Ann. §§ 40-58-70, 40-58-75 and 40-58-78.
3. Conclusions
After
carefully weighing the evidence and applying the law as discussed above, the
court finds that the Department’s petition should be granted without exception.
The
Department has presented uncontested evidence that the Respondent has violated
the provisions of the Licensing Requirements Act of Certain Brokers of
Mortgages on Residential Real Property by failing to provide required
disclosures and engaging in false, fraudulent and deceptive conduct by failing
to disclose material terms in brokering residential mortgages.
ORDER
Based on the Findings
of Fact and Conclusions of Law stated above, it is ORDERED that:
The
Respondent’s, Premier Mortgage Funding, Inc., surety bonds, Special Deposit
Bond #LPM 7570150 issued by Fidelity and Deposit Company of Maryland and
Special Deposit Bond #9050166 issued by Washington International Insurance
Company, SHALL EACH BE ASSESSED in the amount of $10,000.
Petitioner SHALL BE ALLOWED TO HOLD monies from Special Deposit Bonds #LPM 7570150
and #9050166 for the statutory period until Petitioner can determine all
consumers that have been affected during the terms of the bonds.
The
Respondent Premier Mortgage Funding, Inc., their agents and assigns, SHALL
BE ASSESSED an administrative fine of five hundred ($500.00) dollars for
each violation of the Act.
The
Respondent’s, Premier Mortgage Funding, Inc., license IS PERMANENTLY
REVOKED.
IT IS SO ORDERED.
_________________________________
John
D. McLeod
Administrative
Law Judge
March 6, 2008
Columbia, South Carolina
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