To protect the health and safety of the public and our employees, the Department of Banking has limited the number of employees at our office at 260 Constitution Plaza in Hartford. When contacting the Department, please use electronic communication whenever possible. Consumers are encouraged to use our online form for complaints. If you are unsure where to send an inquiry, you may send it to Department.Banking@ct.gov and it will be routed appropriately. Thank you for your patience during this time.

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IN THE MATTER OF:

FAIRFIELD COUNTY
MORTGAGE COMPANY     
NMLS # 116804

     ("Fairfield County Mortgage")

   
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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, Fairfield County Mortgage is a Connecticut corporation that is currently licensed to act as a mortgage broker 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, conducted investigations, pursuant to the authority granted by Sections 36a-17(a) and 36a-498f of the Connecticut General Statutes, into the activities of Fairfield County 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 December 11, 2012, as a result of one investigation, the Commissioner, acting pursuant to Section 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 (“First Notice”) against Fairfield County Mortgage, which First Notice is incorporated herein by reference;

WHEREAS, the Commissioner alleged in the First Notice that Fairfield County Mortgage failed to file its MCR – Standard – Financial Condition report for 2012 that was due on June 29, 2012, and failed to file its MCR – Standard – RMLA (Q2) that was due on August 14, 2012, all in violation of Section 36a-534b(c)(3) of the 2012 Supplement to the General Statutes in effect prior to October 1, 2012, and Section 36a-534b(c)(3) of the 2012 Supplement to the General Statutes, as amended by Public Act 12-96, which violations formed 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 December 13, 2012, the First Notice was sent by certified mail, return receipt requested, to Fairfield County Mortgage (Certified Mail No. 70112000000247316185);

WHEREAS, on December 17, 2012, Fairfield County Mortgage received the First Notice and, on December 21, 2012, requested a hearing;

WHEREAS, on June 25, 2013, as a result of another investigation, the Commissioner, acting pursuant to Section 36a-494(a)(1), subsections (a) and (b) of Section 36a-51 and Section 36a-489(a)(2)(A) of the Connecticut General Statutes, issued a Notice of Intent to Issue to Refuse to Renew Mortgage Broker License and Notice of Right to Hearing (“Second Notice”) against Fairfield County Mortgage, which Second Notice is incorporated herein by reference;

WHEREAS, the Commissioner alleged in the Second Notice that Fairfield County Mortgage’s failure to have a designated qualified individual who is a Connecticut licensed mortgage loan originator constitutes sufficient grounds to deny an application for a mortgage broker license pursuant to Sections 36a-489(a)(1) and 36a-488(a)(1) of the Connecticut General Statutes, which in turn constitutes sufficient grounds for the Commissioner to refuse to renew Respondent’s license to act as a mortgage broker in Connecticut for the 2013 licensing period pursuant to Section 36a-494(a)(1) and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes.  Such failure also constitutes sufficient grounds for the Commissioner to refuse to renew Respondent’s mortgage broker license pursuant to Section 36a-489(a)(2)(A) of the Connecticut General Statutes, which would cause such license to expire pursuant to Section 36a-489(a)(2)(B) of the Connecticut General Statutes;

WHEREAS, on June 26, 2013, the Second Notice was sent by certified mail, return receipt requested, to Fairfield County Mortgage (Certified Mail No. 70123050000216929720);

WHEREAS, on June 28, 2013, Fairfield County Mortgage received the Second Notice and, on July 12, 2013, requested a hearing;

WHEREAS, the Commissioner further alleges that Fairfield County Mortgage has subsequently failed to file its MCR – Standard – Financial Condition report for 2013 that was due on June 29, 2013, in violation of Section 36a-534b(c)(3) of the Connecticut General Statutes, which violation provides an additional basis to issue an order to cease and desist pursuant to Sections 36a-494(b) and 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty pursuant to Sections 36a-494(b) and 36a-50(a) of the Connecticut General Statutes, as well as an additional basis to refuse to renew Fairfield County Mortgage’s license to act as a mortgage broker pursuant to Section 36a-494(a)(1)(C) and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes;

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 Fairfield County Mortgage now desire to resolve the matters alleged in the First Notice and the Second Notice and as otherwise set forth herein;

WHEREAS, Fairfield County Mortgage admits that the MCR – Standard – Financial Condition (2012) that was due on June 29, 2012, the MCR – Standard – RMLA (Q2) that was due on August 14, 2012, and the MCR – Standard – Financial Condition report for 2013 that was due on June 29, 2013, described in the First Notice and as set forth herein were not filed on their respective due dates, and admits that it did not have an individual licensed as a Connecticut mortgage loan originator designated as its qualified individual as described in the Second Notice and as set forth herein;

WHEREAS, Fairfield County Mortgage represents to the Commissioner that although it had its mortgage broker license, it did not conduct any business as a mortgage broker from January 1, 2013 to date of execution of this Consent Order because no individual associated with Fairfield County Mortgage held an active mortgage loan originator license during such time;

WHEREAS, Fairfield County 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, Fairfield County 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 allegations contained in the First Notice and the Second Notice and as set forth herein;

WHEREAS, Fairfield County Mortgage agrees that the First Notice and the Second Notice may be used in construing the terms of this Consent Order and agrees to the language of this Consent Order;

AND WHEREAS, Fairfield County 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 allegations contained in the First Notice and the Second Notice, as set forth herein and its right to notice and an opportunity for hearing as it pertains to the additional allegation 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, Fairfield County 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 Fairfield County Mortgage, Fairfield County Mortgage shall request surrender of its mortgage broker license on NMLS.  Fairfield County Mortgage Company, or any subsequent company with Diane Galatie or Peggy Clara Keegan as a control person, qualified individual or branch manager, shall not be eligible to apply for licensure as a mortgage lender, mortgage correspondent lender, or mortgage broker before June 1, 2014.


CONSENT ORDER

NOW THEREFORE, the Commissioner enters the following:

1. The Sanction set forth above be and is hereby entered;
2. Upon issuance of this Consent Order by the Commissioner, these matters will be resolved and the Commissioner will not take any future enforcement action against Fairfield County Mortgage based upon the allegations set forth in the First Notice, the Second Notice or contained herein; provided that issuance of this Consent Order is without prejudice to the right of the Commissioner to take enforcement action against Fairfield County 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 Fairfield County Mortgage and reflected herein is subsequently discovered to be untrue;
3. So long as this Consent Order is promptly disclosed by Fairfield County Mortgage and its control persons on NMLS, as applicable, nothing in the issuance of this Consent Order shall adversely affect the ability of Fairfield County 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 after June 1, 2014, provided all applicable legal requirements for such license are satisfied; and
4.
This Consent Order shall become final when issued.


Issued at Hartford, Connecticut
this 23rd day of December 2013.        ________/s/_________
                                                     Howard F. Pitkin
                                                     Banking Commissioner




I, Peggy Clara Keegan, state on behalf of Fairfield County Mortgage Company 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 Fairfield County Mortgage Company, that Fairfield County Mortgage Company agrees freely and without threat or coercion of any kind to comply with the sanction entered and terms and conditions ordered herein; and that Fairfield County Mortgage Company 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:  Peggy C Keegan  
                                                 Title:  Vice President
                                                 Fairfield County Mortgage Company

State of:  Massachusetts

County of:  Suffolk


On this the 19th day of December 2013, before me, Karen McCormack, the undersigned officer, personally appeared Peggy Keegan who acknowledged himself/herself to be the Vice President of Fairfield County Mortgage Company, a corporation, and that he/she 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/herself as Vice President.

In witness whereof I hereunto set my hand.

                                                       _________/s/_________
                                                       Notary Public  
                                                       Date Commission Expires:  April 3, 2020 


I, Diane Galatie, state that I have read the foregoing Consent Order; that I know and fully understand its contents; that I agree freely and without threat or coercion of any kind to comply with the sanction entered and terms and conditions ordered herein; and that I voluntarily agree to enter into this Consent Order, expressly waiving the procedural rights set forth herein as to the matters described herein.

                                                       ________/s/__________
                                                       Diane Galatie

State of:  Connecticut

County of:  Fairfield


On this the 19 day of December 2013, before me, Maria Jorge, the undersigned officer, personally appeared Diane Galatie, known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument and acknowledged that he executed the same for the purposes therein contained.

In witness whereof I hereunto set my hand.

                                                      _________/s/_________
                                                      Notary Public
                                                      Date Commission Expires:  Jan. 31, 2015

I, Peggy Clara Keegan, state that I have read the foregoing Consent Order; that I know and fully understand its contents; that I agree freely and without threat or coercion of any kind to comply with the sanction entered and terms and conditions ordered herein; and that I voluntarily agree to enter into this Consent Order, expressly waiving the procedural rights set forth herein as to the matters described herein.

                                                      _________/s/_________
                                                      Peggy Clara Keegan


State of:  Massachusetts

County of:  Suffolk


On this the 19th day of December 2013, before me, Karen McCormack, the undersigned officer, personally appeared Peggy Clara Keegan, known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument and acknowledged that he executed the same for the purposes therein contained.

In witness whereof I hereunto set my hand.

                                                      _________/s/__________
                                                      Notary Public
                                                      Date Commission Expires:  April 3, 2020


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