State of Oregon (hereinafter the Director ) conducted an investigation of 1st Rate Home

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1 0 Winter Street NE, Suite Salem, OR 0- Telephone: (0) - STATE OF OREGON DEPARTMENT OF CONSUMER AND BUSINESS SERVICES DIVISION OF FINANCE AND CORPORATE SECURITIES BEFORE THE DIRECTOR OF THE DEPARTMENT OF CONSUMER AND BUSINESS SERVICES In the Matter of: st Rate Home Mortgage, Inc. NMLS -, Respondent. M--00 Order to Cease and Desist, Order Assessing Civil Penalties and Consent to Entry of Order WHEREAS the Director of the Department of Consumer and Business Services for the State of Oregon (hereinafter the Director ) conducted an investigation of st Rate Home Mortgage, Inc., (st Rate) and determined that st Rate engaged in activities constituting a violation of A.0 et seq. and OAR through --00 (hereinafter collectively cited as the Oregon Mortgage Lender Law ); and WHEREAS st Rate wishes to resolve and settle this matter with the Director, NOW THEREFORE, as evidenced by the authorized signature subscribed on this order, st Rate hereby CONSENTS to entry of this order upon the Director s Findings of Fact and Conclusions of Law as stated hereinafter: The Director FINDS that: FINDINGS OF FACT. st Rate Home Mortgage, Inc. (st Rate ) is a foreign corporation first incorporated in Arizona on March, 0. Page of st Rate Home Mortgage, Inc. - M Order to Cease and Desist, Order

2 0 Winter Street NE, Suite Salem, OR 0- Telephone: (0) -. st Rate first obtained an Oregon mortgage broker license from the Division of Finance and Corporate Securities (Division) on September, 0, ML-.. st Rate s principal place of business is located at 0W Baseline Rd, #, Tempe, AZ.. The Oregon Mortgage Lender Law requires licensed mortgage bankers and mortgage brokers to file an annual report with the Division concerning their st Rate mortgage lending activity.. The deadline for filing the annual report for mortgage lending activity was March,.. By January,, the Division made public a website that licensees were to use to file their annual reports. The Division posted a link to that website from the Division s mortgage lending home page along with information on the annual report requirements.. The Division s mortgage lending home page also included a prominent notice about the requirement.. On January,, the Division sent an to the address of record for st Rate, sapna@rhm.com, notifying st Rate that they had not filed the annual report and the deadline was March,.. After sending the to st Rate on January,, a problem was discovered with the Division s website and the Division notified st Rate of the problem.. On January,, the Division sent an to st Rate alerting them that the website was again working correctly and that they must file the report by March,.. On March,, the Division sent st Rate a reminder to the company s address of record noting that the company had not yet filed the annual report and that the deadline to do so was March,.. On April,, st Rate had not filed an annual report for. Page of st Rate Home Mortgage, Inc. - M Order to Cease and Desist, Order

3 0 Winter Street NE, Suite Salem, OR 0- Telephone: (0) -. On April,, the Division sent st Rate a warning letter to the address of record in NMLS notifying them that they are required to file the annual report for Oregon. The letter warned that if st Rate did not file by May,, the matter would be referred for enforcement action and a civil penalty assessed.. On April,, st Rate responded to the sent by the Division on that date seeking information on the PIN, confirming thatst Rate had received the notice.. On April,, the Division also sent an tost Rate notifying them of the missed deadline and warning them of the enforcement action and civil penalty for failure to file by May,.. Since st Rate did not file its annual report by May,, the matter was referred for enforcement on May,.. st Rate filed its annual report on June,. CONCLUSIONS OF LAW The Director concludes that:. By failing to file the annual report for mortgage lending activity by March,, st Rate violated ORS A.() and OAR ORDERS NOW, THEREFORE, THE DIRECTOR ISSUES THE FOLLOWING ORDERS: The Director, pursuant to ORS A., hereby orders st to Cease and Desist from violating Oregon s Mortgage Lender Law. The Director, pursuant to ORS A.(), may assess civil penalties of up to $0 per day each day the report is not filed. The Director, pursuant to ORS A.(), hereby orders: a. st Rate to pay a civil penalty of $,000 for the violation of ORS A.() and OAR Page of st Rate Home Mortgage, Inc. - M Order to Cease and Desist, Order

4 0 Winter Street NE, Suite Salem, OR 0- Telephone: (0) - b. If st Rate does not timely pay the $,000 civil penalty, then the full amount of the $,000 shall become due and owing immediately. Dated this nd day of July, at Salem, Oregon. PATRICK M. ALLEN, Director Department of Consumer and Business Services /s/ David Tatman David C. Tatman, Administrator Division of Finance and Corporate Securities ENTITY CONSENT TO ENTRY OF ORDER I, Sapna Kochuparambil,state that I am an officer of st Rate Home Mortgage, Inc., and I am authorized to act on its behalf. I have read the foregoing order and that I know and fully understand the contents hereof. I have been advised of the right to a hearing and of the right to be represented by counsel in this matter. st Rate voluntarily and without any force or duress consents to the entry of this order expressly waiving any right to a hearing in this matter. st Rate understands that the Director reserves the right to take further actions to enforce this order or to take appropriate action upon discovery of other violations of the Oregon Mortgage Lender Law. st Rate will fully comply with the terms and conditions stated herein. st Rate further assures the Director that neither st Rate, nor its officers, directors, employees, or agents will effect mortgage transactions in Oregon unless such activities are in full compliance with the Oregon Mortgage Lender Law. st Rate understands that this Consent Order is a public document. Dated this th day of July, at Tempe, Arizona. By Sapna Kochuparambil Vice President Office Held Page of st Rate Home Mortgage, Inc. - M Order to Cease and Desist, Order

5 0 Winter Street NE, Suite Salem, OR 0- Telephone: (0) - State of Arizona ) )ss. County of Maricopa ) ENTITY ACKNOWLEDGMENT There appeared before me this th day of July,. Sapna Kochuparambil who was first duly sworn on oath, and stated that (s)he was and is an officer of st Rate and that (s)he is authorized and empowered to sign this Consent to Entry of Order on behalf of st Rate and to bind st Rate to the terms hereof. Indira Smailagic Notary Public for the State of: Arizona My commission expires: Page of st Rate Home Mortgage, Inc. - M Order to Cease and Desist, Order