| * * * * * * * * * * * * * * * * * * *
IN THE MATTER OF: 1ST NEW ENGLAND MORTGAGE |
* * * * * * * * * * * * |
CONSENT ORDER |
WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Part I of Chapter 668, Sections 36a-485 to 36a-534c, inclusive, of the Connecticut General Statutes, “Mortgage Lenders, Correspondent Lenders, Brokers and Loan Originators”;
WHEREAS, FNE Mortgage is a Massachusetts corporation that is currently licensed as a mortgage correspondent lender under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking, pursuant to the authority granted by Section 36a-17(a) of the 2012 Supplement to the General Statutes, as amended by Public Act 12-96, and Section 36a-498f of the Connecticut General Statutes, investigated the activities of FNE Mortgage to determine if it had violated, was violating, or was about to violate the provisions of the Connecticut General Statutes within the jurisdiction of the Commissioner;
WHEREAS, on November 20, 2012, as a result of the investigation, the Commissioner, acting pursuant to Sections 36a-494(b) of the 2012 Supplement to the General Statutes, as amended by Public Act 12-96, Section 36a-52(a) of the Connecticut General Statutes and Section 36a-50(a) of the Connecticut General Statutes, as amended by Public Act 12-96, issued a Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (“Notice”) against FNE Mortgage, which Notice is incorporated herein by reference;
WHEREAS, the Commissioner alleged in the Notice that FNE Mortgage failed to timely file its MCR – Standard – Financial Condition (2011) report that was due on March 30, 2012, in violation of Section 36a-534b(c)(3) of the 2012 Supplement to the General Statutes and/or Section 36a-534b(c)(3) of the 2012 Supplement to the General Statutes, as amended by Public Act 12-96, which such violation forms the basis to issue an order to cease and desist pursuant to Section 36a-494(b) of the 2012 Supplement to the General Statutes, as amended, and Section 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty pursuant to Section 36a-494(b) of the 2012 Supplement to the General Statutes, as amended, and Section 36a-50(a) of the Connecticut General Statutes, as amended;
WHEREAS, on November 21, 2012, the Notice was sent by certified mail, return receipt requested, to FNE Mortgage (Certified Mail No. 70112000000247316055);
WHEREAS, on November 26, 2012, FNE Mortgage received the Notice and on December 4, 2012, requested a hearing, which such hearing was convened on January 24, 2013, but then continued on joint motion of the parties to enable settlement discussions between the parties;
WHEREAS, Section 4-177(c) of the Connecticut General Statutes and Section 36a-1-55(a) of the Regulations of Connecticut State Agencies provide that a contested case may be resolved by consent order, unless precluded by law;
WHEREAS, the Commissioner and FNE Mortgage now desire to resolve the matters alleged in the Notice and set forth herein;
WHEREAS, on March 29, 2012, FNE Mortgage timely uploaded a required Financial Statement for 2011 on NMLS;
WHEREAS, FNE Mortgage represents to the Commissioner that it in good faith believed it had filed all required financial information, but admits the MCR – Standard – Financial Condition (2011) report described in the Notice and set forth herein was not filed on its due date;
WHEREAS, on November 1, 2012, FNE Mortgage filed its MCR – Standard – Financial Condition (2011) report after learning of its omission;
WHEREAS, FNE Mortgage has satisfactorily filed on NMLS all MCRs required up through the 4th quarter RMLA that was due February 14, 2013;
WHEREAS, FNE Mortgage acknowledges that this Consent Order is a public record and is a reportable event for purposes of the regulatory disclosure questions on the Nationwide Mortgage Licensing System and Registry (“NMLS”), as applicable;
WHEREAS, FNE Mortgage voluntarily agrees to consent to the entry of the sanction described below, solely for the purpose of obviating the need for further formal administrative proceedings concerning the allegation contained in the Notice and set forth herein;
WHEREAS, FNE Mortgage herein represents to the Commissioner that it has reviewed and updated its internal policies, procedures and controls for timely and accurately filing required reports with the Commissioner through NMLS as required or as otherwise permitted under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
WHEREAS, FNE Mortgage agrees that the Notice may be used in construing the terms of this Consent Order and agrees to the language of this Consent Order;
AND WHEREAS, FNE Mortgage, through its execution of this Consent Order, voluntarily agrees to waive any applicable procedural rights, including a right to a hearing as it pertains to the allegation contained in the Notice and set forth herein, and voluntarily waives its right to seek judicial review or otherwise challenge or contest the validity of this Consent Order.
CONSENT TO ENTRY OF SANCTION
WHEREAS, FNE Mortgage, through its execution of this Consent Order, consents to the Commissioner’s entry of a Consent Order imposing the following sanction:
No later than the date this Consent Order is executed by FNE Mortgage, FNE Mortgage shall remit to the Department of Banking by wire transfer or by cashier’s check, certified check or money order made payable to “Treasurer, State of Connecticut”, the sum of Two Thousand Five Hundred Dollars ($2,500) as a civil penalty.
CONSENT ORDER
NOW THEREFORE, the Commissioner enters the following:
| 1. | The Sanction set forth above be and is hereby entered; |
| 2. | In the future, FNE Mortgage shall timely and accurately file all required reports on NMLS or as otherwise permitted under Part I of Chapter 668 of the Connecticut General Statutes in connection with its current, and any future license issued to FNE Mortgage; |
| 3. | Upon issuance of this Consent Order by the Commissioner, this matter will be resolved and the Commissioner will not take any future enforcement action against FNE Mortgage based upon the allegation set forth in the Notice and contained herein; provided that issuance of this Consent Order is without prejudice to the right of the Commissioner to take enforcement action against FNE Mortgage based upon a violation of this Consent Order or the matters underlying its entry, if the Commissioner determines that compliance with the terms herein is not being observed or if any representation made by FNE Mortgage and reflected herein is subsequently discovered to be untrue; |
| 4. |
So long as this Consent Order is promptly disclosed by FNE Mortgage and its control persons on NMLS, as applicable, nothing in the issuance of this Consent Order shall adversely affect the ability of FNE Mortgage to apply for or obtain licenses or renewal licenses under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes, provided all applicable legal requirements for such license are satisfied; and |
| 5. |
This Consent Order shall become final when issued. |
Issued at Hartford, Connecticut
this 27th day of March 2013. ________/s/_________
Howard F. Pitkin
Banking Commissioner
I, Bradley T. Black, state on behalf of 1st New England Mortgage Corporation d/b/a FNE Mortgage that I have read the foregoing Consent Order; that I know and fully understand its contents; that I am authorized to execute this Consent Order on behalf of 1st New England Mortgage Corporation d/b/a FNE Mortgage; that 1st New England Mortgage Corporation d/b/a FNE Mortgage agrees freely and without threat or coercion of any kind to comply with the sanction entered and terms and conditions ordered herein; and that 1st New England Mortgage Corporation d/b/a FNE Mortgage voluntarily agrees to enter into this Consent Order, expressly waiving the procedural rights set forth herein as to the matters described herein.
By: ________/s/________
Name: Bradley T. Black
Title: Vice President
1st New England Mortgage Corporation
d/b/a FNE Mortgage
State of: Massachusetts
County of: Middlesex
On this the 25th day of March 2013, before me, Jeffrey Gerson, the undersigned officer, personally appeared Bradley T. Black who acknowledged himself to be the Vice President of 1st New England Mortgage Corporation d/b/a FNE Mortgage, a corporation, and that he as such Vice President, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself as Vice President.
In witness whereof I hereunto set my hand.
_________/s/_________
Notary Public
Date Commission Expires: 10-27-17