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IN THE MATTER OF:
HORIZON FINANCIAL, INC.
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, Horizon Financial is a South Carolina corporation that is currently licensed in Connecticut 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 an investigation pursuant to the authority granted by Sections 36a-17(a) and 36a-498f of the Connecticut General Statutes, into the activities of Horizon Financial 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, as a result of the investigation, the Commissioner alleges that Horizon Financial failed to timely file its MCR – Standard – Financial Condition report for 2012 that was due on March 31, 2013, in violation of Section 36a-534b(c)(3) of Connecticut General Statutes;
WHEREAS, the Commissioner believes that such allegation would support initiation of enforcement proceedings against Horizon Financial, including proceedings to issue a cease and desist order pursuant to Sections 36a-494(b) and 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty of up to one hundred thousand dollars ($100,000) per violation pursuant to Sections 36a 494(b) and 36a-50(a) of the Connecticut General Statutes;
WHEREAS, initiation of such enforcement proceedings would constitute a “contested case” within the meaning of Section 4-166(2) 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 Horizon Financial now desire to resolve the matters alleged herein;
WHEREAS, Horizon Financial admits that that the MCR – Standard – Financial Condition (2012) described herein was not filed on its due date, and 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, Horizon Financial 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 herein;
WHEREAS, Horizon Financial agrees to the language of this Consent Order;
AND WHEREAS, Horizon Financial, through its execution of this Consent Order, voluntarily agrees to waive any applicable procedural rights, including a right to notice and a hearing as it pertains to the 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, Horizon Financial, 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 Horizon Financial, Horizon Financial shall request surrender of its mortgage broker license and shall not be eligible to apply for licensure as a mortgage lender, mortgage correspondent lender or mortgage broker before April 1, 2014.
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, this matter will be resolved and the Commissioner will not take any future enforcement action against Horizon Financial based upon the allegation contained herein; provided that issuance of this Consent Order is without prejudice to the right of the Commissioner to take enforcement action against Horizon Financial 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 Horizon Financial and reflected herein is subsequently discovered to be untrue;|
|3.||So long as this Consent Order is promptly disclosed by Horizon Financial and its control persons on NMLS, as applicable, nothing in the issuance of this Consent Order shall adversely affect the ability of Horizon Financial 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 April 1, 2014, provided all applicable legal requirements for such license are satisfied; and|
This Consent Order shall become final when issued.
Issued at Hartford, Connecticut
this 11th day of October 2013. ________/s/_________
Howard F. Pitkin
I, Scott Fowler, state on behalf of Horizon Financial, Inc. d/b/a Horizon Financial of Connecticut, Inc., 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 Horizon Financial, Inc. d/b/a Horizon Financial of Connecticut, Inc.; that Horizon Financial, Inc. d/b/a Horizon Financial of Connecticut, Inc., agrees freely and without threat or coercion of any kind to comply with the sanction entered and terms and conditions ordered herein; and that Horizon Financial, Inc. d/b/a Horizon Financial of Connecticut, Inc., voluntarily agrees to enter into this Consent Order, expressly waiving the procedural rights set forth herein as to the matters described herein.
Name: Scott Fowler
Horizon Financial, Inc.
d/b/a Horizon Financial of Connecticut, Inc.
State of: South Carolina
County of: Greenville
On this the 1st day of October 2013, before me, Rhonda Cameron, the undersigned officer, personally appeared Scott Fowler who acknowledged himself/herself to be the President of Horizon Financial Inc. d/b/a Horizon Financial of Connecticut, Inc., a corporation, and that he/she as such 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 President.
In witness whereof I hereunto set my hand.
Date Commission Expires: 12-21-2015