The Department of Banking News Bulletin
Bulletin # 3110 - Week Ending September 29, 2023
This bulletin constitutes the only official notification you will receive from this office concerning any of the following applications. Any observations you may have are solicited. Any comments should be in writing to Jorge L. Perez, Banking Commissioner, Department of Banking, 260 Constitution Plaza, Hartford, CT 06103-1800. Written comments will be considered only if they are received within ten business days from the date of this bulletin.
CREDIT UNION ACTIVITY
Field of Membership Amendment
On September 25, 2023, the Commissioner approved the application of Nutmeg State Financial Credit Union to amend its bylaws pursuant to Section 36a-438(a) of the Connecticut General Statutes to expand its field of membership to include AAA Club Alliance members and employees. This expanded field of membership approval is effective as of October 1, 2023.
CONSUMER CREDIT DIVISION ACTIVITY
Notice of Automatic Suspension, Temporary Order to Cease and Desist, Notice of Intent to Revoke Mortgage Lender License and Notice of Intent to Issue Order to Cease and Desist
On September 19, 2023, the Commissioner issued a Notice of Automatic Suspension, Temporary Order to Cease and Desist, Notice of Intent to Revoke Mortgage Lender License, Notice of Intent to Issue Order to Cease and Desist and Notice of Right to Hearing (“Order and Notice”) in the Matter of: Animo Mortgage Company LLC d/b/a GloriFi d/b/a GloriFi Mortgage (NMLS # 2267438) (“Respondent”), Dallas, Texas. The Commissioner alleges in the Order and Notice that the Respondent’s failure to maintain a surety bond that runs concurrently with the period of its mortgage lender license constitutes sufficient grounds for the Commissioner to deny an application for such license under Section 36a-489(a) of the Connecticut General Statutes and constitutes sufficient grounds for the Commissioner to revoke Respondent’s license to engage in the business of a mortgage lender in Connecticut from its main office pursuant to Sections 36a-492(c) and 36a-494(a) of the Connecticut General Statutes and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, and forms a basis to issue an order to cease and desist pursuant to Sections 36a 494(b) and 36a-52(a) of the Connecticut General Statutes. The Commissioner found that the public welfare required immediate action to issue a Temporary Order to Cease and Desist against Respondent. As a result of Respondent’s failure to maintain a surety bond, Respondent’s mortgage lender license in Connecticut was automatically suspended effective February 17, 2023, and such suspension remains in effect pending proceedings for revocation. Respondent was afforded an opportunity to request a hearing with regard to the allegation set forth in the Order and Notice.
On September 25, 2023, the Commissioner entered into a Consent Order with Ironhorse Funding LLC (NMLS # 1743763) (“Ironhorse Funding”), Beverly, Massachusetts. The Consent Order was based on an investigation by the Consumer Credit Division. As a result of such investigation, and information disclosed by IronHorse Funding during its small loan license application process, the Commissioner alleged that between at least January 1, 2021 and the present, Ironhorse Funding made three small loans to Connecticut borrowers which exceeded an annual percentage rate of twelve percent and received payments of principal and interest in connection with four small loans made to Connecticut borrowers following the expiration of its small loan license, in violation of subdivisions (1) and (4) of Section 36a-556(a) of the Connecticut General Statutes, respectively. As part of the Consent Order, Ironhorse Funding paid $10,000 as a civil penalty, $400 as back licensing fees and reimbursement of amounts paid in excess of an annual percentage rate of twelve percent to all identified Connecticut borrowers.
Jorge L. Perez