The delegation, which included the Grand Master Edward Stevenson, met on Tuesday morning at the Stormont Estate.
Drew Nelson, the Order's Grand Secretary of Ireland, told UTV that they had "a full and frank exchange of views."
He said that Ms Villiers was told they would engage willingly in the forthcoming Haas negotiations.
"We talked to her about the situation in Belfast, we talked about the hidden part of the Twelfth, the story that hasn't been told - about the police failure to protect some of the parades," he claimed.
"We talked about the continuing crisis where the Lignoniel lodges have still not got finishing their parades - and we also mentioned Drumcree where there is still an outstanding matter."
Mr Nelson said the Order was seeking a better regulatory system that will dispense for the need for a Parades Commission.
He added that the Order wanted a new body formed which would be "fairer " and create a level playing field which they feel they would be able to engage with.