| * * * * * * * * * * * * * * * * * * * * IN THE MATTER OF: FAIRFIELD COUNTY MORTGAGE COMPANY NMLS # 116804 ("Respondent") * * * * * * * * * * * * * * * * * * * * |
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NOTICE OF INTENT TO NOTICE OF RIGHT TO HEARING |
I. LEGAL AUTHORITY AND JURISDICTION
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”.
Pursuant to the authority granted by Sections 36a-17(a) and 36a-498f of the Connecticut General Statutes, the Commissioner, through the Consumer Credit Division (“Division”) of the Department of Banking, has investigated the activities of Respondent to determine if it continues to meet the minimum qualifications for licensure under the provisions of the Connecticut General Statutes within the jurisdiction of the Commissioner.
Section 36a-17(a) of the Connecticut General Statutes provides that:
The commissioner, in the commissioner’s discretion, may, subject to the provisions of section 36a-21 and the Freedom of Information Act, as defined in section 1-200; (1) make such public or private investigations or examinations within or outside this state, concerning any person subject to the jurisdiction of the commissioner, as the commissioner deems necessary to carry out the duties of the commissioner.
Section 36a-498f(a) of the Connecticut General Statutes provides that:
In addition to any authority provided under this title, the Banking Commissioner shall have the authority to conduct investigations and examinations as follows:
(1) For purposes of . . . license renewal, . . . , or general or specific inquiry or investigation to determine compliance with sections 36a-485 to 36a-498f, inclusive, 36a-534a and 36a-534b, the commissioner may access, receive and use any books, accounts, records, files, documents, information or evidence including, but not limited to: (A) Criminal, civil and administrative history information; (B) personal history and experience information including independent credit reports obtained from a consumer reporting agency described in Section 603(p) of the federal Fair Credit Reporting Act, 15 USC 1681a; and (C) any other documents, information or evidence the commissioner deems relevant to the inquiry or investigation regardless of the location, possession, control or custody of such documents, information or evidence.
Subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes provide, in pertinent part, that:
(a) The commissioner may . . . refuse to renew any license issued by the commissioner under any provision of the general statutes by sending a notice to the licensee by registered or certified mail, return receipt requested, or by any express delivery carrier that provides a dated delivery receipt. The notice shall be deemed received by the licensee on the earlier of the date of actual receipt or seven days after mailing or sending. Any such notice shall include: (1) A statement of the time, place, and nature of the hearing; (2) a statement of the legal authority and jurisdiction under which the hearing is to be held; (3) a reference to the particular sections of the general statutes . . . involved; (4) a short and plain statement of the matters asserted; and (5) a statement indicating that the licensee may file a written request for a hearing on the matters asserted within fourteen days of receipt of the notice. . . .
(b) If a hearing is requested within the time specified in the notice, the commissioner shall hold a hearing upon the matters asserted in the notice unless the licensee fails to appear at the hearing. After the hearing, the commissioner shall . . . refuse to renew the license for any reason set forth in the applicable licensing provisions of the general statutes if the commissioner finds sufficient grounds exist for such . . . refusal to renew. If the licensee does not request a hearing within the time specified in the notice or fails to appear at the hearing, the commissioner shall . . . refuse to renew the license. No such license shall be . . . revoked except in accordance with the provisions of chapter 54.
Section 4-182 of the Connecticut General Statutes provides, in pertinent part, that:
(b) When a licensee has made timely and sufficient application for the renewal of a license . . . , the existing license shall not expire until the application has been finally determined by the agency . . . .
(c) No revocation, suspension, annulment or withdrawal of any license is lawful unless, prior to the institution of agency proceedings, the agency gave notice by mail to the licensee of facts or conduct which warrant the intended action, and the licensee was given an opportunity to show compliance with all lawful requirements for the retention of the license. . . .
II. MATTERS ASSERTED
| 1. | Respondent is a Connecticut corporation with an office at 200 Mill Plain Road, Fairfield, Connecticut. |
| 2. | On December 19, 2012, Respondent requested renewal of its license to act as a mortgage broker in Connecticut under Part I of Chapter 668, Sections 36a-485 to 36a-534c, inclusive, of the Connecticut General Statutes on the Nationwide Mortgage Licensing System and Registry (“NMLS”) for the 2013 licensing period. |
| 3. | On January 7, 2013, the Commissioner, through the Division, posted a deficiency to Respondent’s NMLS account that provides, that “[t]he qualifying individual for Connecticut is required to be licensed as a mortgage loan originator. Please address this item”. |
| 4. |
On April 11, 2013, pursuant to Section 4-182(c) of the Connecticut General Statutes, the Division sent a letter to Respondent giving Respondent an opportunity to show compliance with all lawful requirements for retention of its mortgage broker license in Connecticut (“Compliance Letter”), which was received by Respondent on April 15, 2013. |
| 5. | To date, Respondent has failed to respond to the Compliance Letter. |
| 6. | As of the date of this Notice, the designated qualified individual has not been changed. |
| 7. |
As of the date of this Notice, the designated qualified individual is not a licensed mortgage loan originator nor has an application for such licensure been received by the Division. |
III. STATUTORY BASIS FOR REFUSAL TO RENEW MORTGAGE BROKER LICENSE
Section 36a-494(a)(1) of the Connecticut General Statutes provides, in pertinent part, that:
The commissioner may . . . refuse to renew any . . . mortgage broker license or take any other action, in accordance with the provisions of section 36a-51, for any reason which would be sufficient grounds for the commissioner to deny an application for such license under sections 36a-485 to 36a-498f, inclusive, 36a-534a and 36a-534b . . . .
Section 36a-489(a)(1) of the Connecticut General Statutes provides, in pertinent part, that:
The commissioner shall not issue an initial license for a . . . mortgage broker unless the commissioner, at a minimum, finds that: (A) The applicant meets the requirements of subsection (a) of section 36a-488 . . . .
Section 36a-488(a)(1) of the Connecticut General Statutes provides, in pertinent part, that:
The commissioner shall not issue a . . . mortgage broker license to any person unless such person meets the following . . . experience requirements, as applicable: . . . (B) a . . . mortgage broker shall have, at the main office for which the license is sought, a qualified individual . . . (iii) who, effective November 1, 2012, . . . [is] licensed as a mortgage loan originator under section 36a-489.
Section 36a-489(a)(2) of the Connecticut General Statutes provides, in pertinent part:
(A) The minimum standards for license renewal for a . . . mortgage broker shall include the following: (i) The applicant continues to meet the minimum standards under subdivision (1) of this subsection; (ii) . . . effective November 1, 2012, each qualified individual . . . is licensed as a mortgage loan originator . . . .
(B) The license of a . . . mortgage broker failing to satisfy the minimum standards for renewal shall expire.
| 1. |
Respondent’s failure to have a designated qualified individual who is a Connecticut licensed mortgage loan originator as set forth in paragraphs 1 through 7, inclusive, of the Matters Asserted constitutes sufficient grounds to deny an application for 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. |
IV. NOTICE OF INTENT TO ISSUE TO REFUSE TO RENEW MORTGAGE
BROKER LICENSE AND NOTICE OF RIGHT TO HEARING
WHEREAS, the Commissioner has sufficient grounds 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), subsections (a) and (b) of Section 36a-51, and Section 36a-489(a)(2)(A) of the Connecticut General Statutes;
NOW THEREFORE, notice is hereby given to Respondent that the Commissioner intends to REFUSE TO RENEW Respondent’s license to act as a mortgage broker in Connecticut 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 and such license shall be deemed EXPIRED subject to Respondent’s right to a hearing on the allegation set forth above.
A hearing will be granted to Respondent if a written request for a hearing is received by the Department of Banking, Consumer Credit Division, 260 Constitution Plaza, Hartford, Connecticut 06103-1800 within fourteen (14) days following its receipt of this Notice of Intent to Refuse to Renew Mortgage Broker License and Notice of Right to Hearing as set forth in subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes. This Notice of Intent to Refuse to Renew Mortgage Broker License and Notice of Right to Hearing shall be deemed received on the earlier of the date of actual receipt, or seven days after mailing or sending. The enclosed Appearance and Request for Hearing Form must be completed and mailed to the above address. If Respondent will not be represented by an attorney at the hearing, please complete the Appearance and Request for Hearing Form as “pro se”. Once a written request for hearing is received, the Commissioner may issue a notification of hearing and designation of hearing officer that acknowledges receipt of a request for a hearing, designates a hearing officer and sets the date of the hearing in accordance with Section 4-177 of the Connecticut General Statutes and Section 36a-1-21 of the Regulations of Connecticut State Agencies. If a hearing is requested, the hearing will be held on August 6, 2013, at 10 a.m., at the Department of Banking, 260 Constitution Plaza, Hartford, Connecticut.
The hearing will be held in accordance with the provisions of Chapter 54 of the Connecticut General Statutes, unless Respondent fails to appear at the requested hearing. At such hearing, Respondent will have the right to appear and present evidence, rebuttal evidence and argument on all issues of fact and law to be considered by the Commissioner.
If Respondent does not request a hearing within the time prescribed, the Commissioner will issue an order refusing to renew Respondent’s license to act as a mortgage broker in Connecticut for the 2013 licensing period, which shall cause such license to be deemed expired.
Dated at Hartford, Connecticut
this 25th day of June 2013. ________/s/_________
Howard F. Pitkin
Banking Commissioner
CERTIFICATION
I hereby certify that on this 26th day of June 2013, the foregoing Notice of Intent to Refuse to Renew Mortgage Broker License and Notice of Right to Hearing was sent by certified mail, return receipt requested, to Fairfield County Mortgage Company, Attention: Diane Galatie, Operations Manager, 200 Mill Plain Road, Fairfield, Connecticut 06824, certified mail no. 70123050000216929720.
________/s/_________
Stacey Valerio
Prosecuting Attorney