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IN THE MATTER OF: ISB MORTGAGE CO., L.L.C. |
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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, Investors Home Mortgage is a New Jersey limited liability company that is currently licensed as a mortgage 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 Investors Home 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 23, 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 Investors Home Mortgage, which Notice is incorporated herein by reference;
WHEREAS, the Commissioner alleged in the Notice that Investors Home Mortgage failed to timely file both its first quarter mortgage call report that was due on May 15, 2012, and its second quarter mortgage call report that was due on August 14, 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 violations form 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 26, 2012, the Notice was sent by certified mail, return receipt requested, to Investors Home Mortgage (Certified Mail No. 70112000000247316062);
WHEREAS, on November 28, 2012, Investors Home Mortgage received the Notice and on December 4, 2012, requested a hearing, which hearing is currently scheduled for January 29, 2013;
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 Investors Home Mortgage now desire to resolve the matters alleged in the Notice and set forth herein;
WHEREAS, Investors Home Mortgage admits that it had not filed the reports described in the Notice and set forth herein, on their respective due dates, 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, Investors Home 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 Notice and set forth herein;
WHEREAS, Investors Home 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, Investors Home 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, Investors Home 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 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, Investors Home 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 Investors Home Mortgage, Investors Home Mortgage shall remit to the Department of Banking by cashier’s check, certified check or money order made payable to “Treasurer, State of Connecticut”, the sum of One Thousand Dollars ($1,000) 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. | No later than the date this Consent Order is executed by Investors Home Mortgage, Investors Home Mortgage shall have satisfactorily filed on NMLS all mortgage call reports required to date, and also expressly including the 3rd quarter mortgage call report due November 14, 2012. In the future, Investors Home 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 Investors Home 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 Investors Home Mortgage based upon the allegations 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 Investors Home 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 Investors Home Mortgage and reflected herein is subsequently discovered to be untrue; |
| 4. | So long as this Consent Order is promptly disclosed by Investors Home Mortgage and its control persons on NMLS, as applicable, nothing in the issuance of this Consent Order shall adversely affect the ability of Investors Home 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 |
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This Consent Order shall become final when issued.
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Issued at Hartford, Connecticut
this 2nd day of January 2013. ________/s/_________
Howard F. Pitkin
Banking Commissioner
I, W. Thomas Kelly, state on behalf of ISB Mortgage Co., L.L.C. d/b/a Investors Home 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 ISB Mortgage Co., L.L.C. d/b/a Investors Home Mortgage; that ISB Mortgage Co., L.L.C. d/b/a Investors Home 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 ISB Mortgage Co., L.L.C. d/b/a Investors Home 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: W. Thomas Kelly
Title: President
ISB Mortgage Co., L.L.C. d/b/a Investors
Home Mortgage
State of: NJ
County of: Essex
On this the 18th day of December 2012, before me, Denise Garry, the undersigned officer, personally appeared W. Thomas Kelly who acknowledged himself/herself to be the President of ISB Mortgage Co., L.L.C. d/b/a Investors Home Mortgage, a limited liability company, 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 limited liability company by himself/herself as President.
In witness whereof I hereunto set my hand.
_________/s/_________
Notary Public
Date Commission Expires: September 23, 2016