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IN THE MATTER OF: MORTGAGE PLUS LLC ("Mortgage Plus") |
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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, Mortgage Plus is a Connecticut limited liability company that has been licensed as a mortgage broker in Connecticut on the Nationwide Mortgage Licensing System and Registry (NMLS”) since April 5, 2011;
WHEREAS, on December 15, 2011, Mortgage Plus requested renewal of its license to act as a mortgage broker in Connecticut for the 2012 licensing period;
WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking (“Department”), pursuant to the authority granted by Section 36a-17 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 Mortgage Plus 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 January 16, 2013, as a result of the investigation, the Commissioner, acting pursuant to Sections 36a-494(a)(1), 36a-494(a)(1)(C) and subsections (a) and (b) of Section 36a-51 of the 2012 Supplement to the General Statutes, 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 Revoke and Refuse to Renew Mortgage Broker License, 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 Mortgage Plus, which Notice is incorporated herein by reference;
WHEREAS, on January 16, 2013, the Notice was sent by certified mail, return receipt requested, to Mortgage Plus (Certified Mail No. 70112000000247319971);
WHEREAS, on January 22, 2013, Mortgage Plus received the Notice and requested a hearing on February 13, 2013, which hearing is currently scheduled for March 20, 2013;
WHEREAS, the Commissioner alleged in the Notice that Mortgage Plus’s failure to timely provide the Commissioner a complete and accurate response to a December 1, 2011, Report of Examination (“ROE”) and August 31, 2012, Compliance Letter (“Second Compliance Letter”) renders the Commissioner unable to determine that Mortgage Plus demonstrates financial responsibility, character and general fitness such as to command the confidence of the community and to warrant a determination that Mortgage Plus will operate honestly, fairly and efficiently within the purposes of Sections 36a-485 to 36a-498f, inclusive, 36a-534a and 36a-534b of the Connecticut General Statutes, and causes Mortgage Plus to fail to meet minimum standards for renewal, which shall cause such license to expire;
WHEREAS, the Commissioner also alleged in the Notice that Mortgage Plus’s failure to timely provide the Commissioner with a complete and accurate response to the ROE and Second Compliance Letter constitutes a failure by Mortgage Plus to fully cooperate with the Commissioner, in violation of Section 36a-17(d) of the 2012 Supplement to the General Statutes, as amended by Public Act 12-96;
WHEREAS, the Commissioner further alleged in the Notice that Mortgage Plus violated (1) Section 36a-486(b)(1) of the 2012 Supplement to the General Statutes by employing an unlicensed mortgage loan processor/underwriter; (2) Sections 36a-488(a)(1) and 36a-488(a)(2) of the 2012 Supplement to the General Statutes by failing to demonstrate that it has maintained the required minimum tangible net worth; (3) Section 36a-534b(c)(3) of the 2012 Supplement to the General Statutes by not filing the residential mortgage loan activity component of the mortgage call report for the second quarter of 2012; and (4) Section 36a-489(a)(2) of the 2012 Supplement to the General Statutes by having a qualified individual who does not meet the minimum standards for such position;
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, on February 14, 2013, Mortgage Plus filed a complete and accurate response to the ROE and satisfactorily addressed all of the issues contained in the Second Compliance Letter;
WHEREAS, the Commissioner and Mortgage Plus now desire to resolve the matters alleged in the Notice and set forth herein;
WHEREAS, Mortgage Plus acknowledges that this Consent Order is a public record and is a reportable event for purposes of the regulatory disclosure questions on NMLS, as applicable;
WHEREAS, Mortgage Plus voluntarily agrees to consent to the entry of the sanctions described below, without admitting or denying any allegation contained in the Notice and set forth herein and 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, Mortgage Plus 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, Mortgage Plus, 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 SANCTIONS
WHEREAS, Mortgage Plus, through its execution of this Consent Order, consents to the Commissioner’s entry of a Consent Order imposing the following sanctions:
| 1. | Mortgage Plus shall immediately cease and desist from violating Section 36a-17(d) of the 2012 Supplement to the General Statutes, as amended by Public Act 12-96, and Sections 36a-486(b)(1), 36a-488(a)(1), 36a-488(a)(2), 36a-534b(c)(3) and 36a-489(a)(2) of the 2012 Supplement to the General Statutes; and |
| 2. | No later than the date this Consent Order is executed by Mortgage Plus, Mortgage Plus 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 Five Thousand Dollars ($5,000) as a civil penalty. |
CONSENT ORDER
NOW THEREFORE, the Commissioner enters the following:
| 1. | The Sanctions 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 Mortgage Plus based upon the allegations contained in the Notice and set forth herein; provided that issuance of this Consent Order is without prejudice to the right of the Commissioner to take enforcement action against Mortgage Plus 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 Mortgage Plus and reflected herein is subsequently discovered to be untrue; |
| 3. | So long as this Consent Order is promptly disclosed by Mortgage Plus and its control persons on NMLS, as applicable, nothing in the issuance of this Consent Order shall adversely affect the ability of Mortgage Plus 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. |
Issued at Hartford, Connecticut
this 4th day of April 2013. ________/s/_________
Howard F. Pitkin
Banking Commissioner
I, Peter Boccarossa, state on behalf of Mortgage Plus LLC, 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 Mortgage Plus LLC; that Mortgage Plus LLC agrees freely and without threat or coercion of any kind to comply with the sanctions entered and terms and conditions ordered herein; and that Mortgage Plus LLC 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: Peter Boccarossa
Title: Member
Mortgage Plus LLC
State of: CT
County of: Fairfield
On this the 28 day of March 2013, before me, Richard Longo, the undersigned officer, personally appeared Peter Boccarossa, who acknowledged himself/herself to be the Member of Mortgage Plus LLC, a member managed/manager managed limited liability company, and that he/she as such Member, 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 Peter Boccarossa.
In witness whereof I hereunto set my hand.
_________/s/_________
Notary Public
Date Commission Expires: Jan. 31, 2015