The case arose as a result of anrnexamination by the state of New Hampshire followed by another conducted by thernMaryland Commissioner of Financial Regulation regarding the impermissiblernsharing of test information for mortgage professionals as well as the practicernof several New Day employees who apparently completed continuing education (CE)rnrequirements for numerous fellow employees. </p

“The MMC coordinated the investigationrnof this matter, identifying a pattern of inappropriate conduct, and negotiated,rnon behalf of the participating state regulators, a resolution that will permitrnthe company to continue to operate while ensuring compliance with all state andrnfederal laws,” said Karyn Tierney, MMC Chairman and Deputy Commissioner of thernArkansas Securities Department. “This case demonstrates the manner by whichrnstate mortgage regulators cooperate to more efficiently and effectivelyrnsupervise mortgage companies, including resolving compliance issues through arncoordinated enforcement action.” </p

In addition to the financial penaltiesrnthe consent order requires the removal and replacement of New Day’s ChiefrnOperating Officer; hiring of an independent auditor to evaluate the company’srnpolicies, procedures, and training and education programs, and a report fromrnNew Day within 270 days identifying the manner in which the company proposesrnimproving its corporate management and governance structures, with an eye tornbest business practices for a mortgage company of its size and scope ofrnbusiness.

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