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IN THE MATTER OF: P.I.C. PROPERTY FUNDING CORP |
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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, P.I.C. Property Funding is a New York corporation that is currently licensed 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 P.I.C. Property Funding 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 March 22, 2013, as a result of the investigation, the Commissioner, acting pursuant to Sections 36a-494(b), 36a-52(a), and 36a-50(a) of the Connecticut General Statutes, 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 P.I.C. Property Funding, which Notice is incorporated herein by reference;
WHEREAS, the Commissioner alleged in the Notice that P.I.C. Property Funding failed to timely file its Q1 and Q2 mortgage call reports that were due on May 15 and August 14, 2012, respectively, 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 Connecticut General Statutes, which such violations form the 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;
WHEREAS, on March 22, 2013, the Notice was sent by certified mail, return receipt requested, to P.I.C. Property Funding (Certified Mail No. 70112000000247319469);
WHEREAS, on March 25, 2013, P.I.C. Property Funding received the Notice, and on March 26, 2013, requested a hearing;
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 P.I.C. Property Funding now desire to resolve the matters alleged in the Notice and set forth herein;
WHEREAS, P.I.C. Property Funding admits that the reports described in the Notice and set forth herein were not filed 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, P.I.C. Property Funding 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, P.I.C. Property Funding 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, P.I.C. Property Funding 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, P.I.C. Property Funding, 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, P.I.C. Property Funding, 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 P.I.C. Property Funding, P.I.C. Property Funding 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 P.I.C. Property Funding, P.I.C. Property Funding shall have satisfactorily filed on NMLS all mortgage call reports required to date, expressly including the MCR – Standard – RMLA (Q4) due February 14, 2013, and the MCR – Standard – Financial Condition for 2012, due 90 days from P.I.C. Property Funding’s fiscal year end. In the future, P.I.C. Property Funding 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 P.I.C. Property Funding; |
| 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 P.I.C. Property Funding 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 P.I.C. Property Funding 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 P.I.C. Property Funding and reflected herein is subsequently discovered to be untrue; |
| 4. | So long as this Consent Order is promptly disclosed by P.I.C. Property Funding and its control persons on NMLS, as applicable, nothing in the issuance of this Consent Order shall adversely affect the ability of P.I.C. Property Funding 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 |
| 5. | This Consent Order shall become final when issued. |
Issued at Hartford, Connecticut
this 24th day of May 2013. ________/s/_________
Howard F. Pitkin
Banking Commissioner
I, Douglas D. Madaio, state on behalf of P.I.C. Property Funding Corp, 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 P.I.C. Property Funding Corp; that P.I.C. Property Funding Corp agrees freely and without threat or coercion of any kind to comply with the sanction entered and terms and conditions ordered herein; and that P.I.C. Property Funding Corp 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: Douglas D. Madaio
Title: Pres
P.I.C. Property Funding Corp
State of: New York
County of: Nassau
On this the 19th day of April 2013, before me, Douglas D. Madaio, the undersigned officer, personally appeared Douglas D. Madaio who acknowledged himself/herself to be the President of P.I.C. Property Funding Corp, a corporation, and that he/she as such Officer, 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 Officer.
In witness whereof I hereunto set my hand.
_________/s/_________
Notary Public
Date Commission Expires: 2/28/15