| * * * * * * * * * * * * * * * * * * * * * * * IN THE MATTER OF: AMERICAN EQUITY | * * * * * * * * * * * * | 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, American Equity Mortgage is a Missouri corporation that is currently licensed as a mortgage correspondent 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, 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 American Equity 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 May 15, 2014, 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 American Equity Mortgage, which Notice is incorporated herein by reference;
WHEREAS, the Commissioner alleged in the Notice that American Equity Mortgage failed to timely file its mortgage call report (“MCR”) that was due on March 31, 2014 (“2013 Financial Condition”), in violation of Section 36a-534b(c)(3) of Connecticut General Statutes, which such violation forms 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 May 16, 2014, the Notice was sent by certified mail, return receipt requested, to American Equity Mortgage (Certified Mail Nos. 70121010000172646868);
WHEREAS, on May 19, 2014, American Equity Mortgage received the Notice;
WHEREAS, the Notice provided American Equity Mortgage with the opportunity for a hearing, and stated that if a hearing was not requested within 14 days of its receipt, the Commissioner would issue an order that American Equity Mortgage cease and desist from violating Section 36a-534b(c)(3) of the Connecticut General Statutes, and may order a civil penalty in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation be imposed upon American Equity Mortgage;
WHEREAS, Section 36a-52(a) provides, in pertinent part, that “[i]f the person does not request a hearing within the time specified in the notice . . . the commissioner shall issue an order to cease and desist against the person”;
WHEREAS, Section 36a-50(a)(2) of the Connecticut General Statutes provides, in pertinent part, that “[i]f such person does not request a hearing within the time specified in the notice . . . the commissioner may . . . order that a civil penalty not exceeding one hundred thousand dollars per violation be imposed upon such person”;
WHEREAS, no request for a hearing has been received by the Commissioner;
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, notwithstanding the foregoing, the Commissioner and American Equity Mortgage now desire to resolve matters alleged in the Notice and set forth herein;
WHEREAS, American Equity Mortgage admits that the 2013 Financial Condition MCR described in the Notice and set forth herein was not filed on its due date;
WHEREAS, American Equity Mortgage 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, American Equity Mortgage voluntarily agrees to consent to the entry of the sanction imposed below, solely for the purpose of obviating the need for further formal administrative action concerning the allegations contained in the Notice and set forth herein;
WHEREAS, American Equity 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, American Equity 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, American Equity Mortgage, through its execution of this Consent Order, voluntarily agrees to waive any applicable procedural rights, 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, American Equity 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 American Equity Mortgage, American Equity 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 Two Thousand Five Hundred Dollars ($2,500) 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 American Equity Mortgage, American Equity Mortgage shall have satisfactorily filed all MCRs required to date, including but not limited to, the 2014 Q1 MCR due on May 15, 2014. In the future, American Equity 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 American Equity 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 American Equity 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 American Equity 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 American Equity Mortgage and reflected herein is subsequently discovered to be untrue; |
| 4. | So long as this Consent Order is promptly disclosed by American Equity Mortgage and its control persons on NMLS, as applicable, nothing in the issuance of this Consent Order shall adversely affect the ability of American Equity 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 |
| 5. | This Consent Order shall become final when issued. |
Issued at Hartford, Connecticut
this 31st day of July 2014. _______/s/_________
Howard F. Pitkin
Banking Commissioner
I, Deanna Daughhettee, state on behalf of American Equity Mortgage, 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 American Equity Mortgage, Inc.; that American Equity Mortgage, 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 American Equity Mortgage, Inc., 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: Deanna Daughhetee
Title: President/CEO
American Equity Mortgage, Inc.
State of: Missouri
County of: St. Louis
On this the 25th day of July 2014, before me, Chris Gorham, the undersigned officer, personally appeared Deanna Daughhetee who acknowledged himself/herself to be the President/CEO of American Equity Mortgage, Inc., a corporation, and that he/she as such President/CEO, 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/CEO.
In witness whereof I hereunto set my hand.
_________/s/_________
Notary Public
Date Commission Expires: July 25, 2015