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IN THE MATTER OF:
KWIK MORTGAGE CORPORATION
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, KWIK MORTGAGE is a New Jersey corporation 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, 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 KWIK 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 April 22, 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 KWIK MORTGAGE, which Notice is incorporated herein by reference;
WHEREAS, the Commissioner alleged in the Notice that KWIK MORTGAGE failed to timely file its mortgage call report that was due on March 31, 2014 (“2013 Financial Condition”), which conduct constituted: (1) a violation of Section 36a-534b(c)(3) of Connecticut General Statutes; (2) a violation of an order of the Commissioner contained in a Consent Order dated June 14, 2012 (“Consent Order”); and (3) a basis to revive allegations previously made by the Commissioner that KWIK MORTGAGE had failed to file various prior MCRs on their respective due dates. Such violations form the basis to issue an order to cease and desist pursuant to Sections 36a-494(b) and/or 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty pursuant to Sections 36a-494(b) and/or 36a-50(a) of the Connecticut General Statutes;
WHEREAS, on April 23, 2014, the Notice was sent by certified mail, return receipt requested, to KWIK MORTGAGE (Certified Mail No. 70121010000172646592);
WHEREAS, on April 28, 2014, KWIK MORTGAGE received the Notice and on May 9, 2014, 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 KWIK MORTGAGE now desire to resolve the matters alleged in the Notice and set forth herein;
WHEREAS, KWIK MORTGAGE admits that the 2013 Financial Condition MCR described in the Notice and set forth herein was not filed on its due date, and has provided the Commissioner with information pertaining to extenuating circumstances;
WHEREAS, KWIK 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, KWIK 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 proceedings concerning the allegations contained in the Notice and set forth herein;
WHEREAS, KWIK 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, KWIK 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, KWIK 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, KWIK 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 KWIK MORTGAGE, KWIK 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 Three Thousand Dollars ($3,000) as a civil penalty.
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 KWIK MORTGAGE, KWIK MORTGAGE shall have satisfactorily filed on NMLS all MCRs required to date, expressly including but not limited to, its Q1 2014 MCR, due on May 15, 2014. In the future, KWIK 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 KWIK 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 KWIK MORTGAGE based upon the allegations set forth in the Notice or contained herein; provided that issuance of this Consent Order is without prejudice to the right of the Commissioner to take enforcement action against KWIK 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 KWIK MORTGAGE and reflected herein is subsequently discovered to be untrue. It is expressly understood and agreed that the subsequent failure by KWIK MORTGAGE to timely file any required MCR within the balance of the 2014 licensing period, or any required MCR in any of the next three (3) licensing periods during which time KWIK MORTGAGE is licensed, shall, in addition to any other remedy available to the Commissioner, form a basis for the Commissioner to fail to find that KWIK MORTGAGE demonstrates the requisite financial responsibility, character and general fitness set forth in Section 36a-489(a) of the Connecticut General Statutes for such licensure which constitutes grounds for the Commissioner to revoke or refuse to renew the license of KWIK MORTGAGE in Connecticut;|
|4.||Subject to the foregoing, and so long as this Consent Order is promptly disclosed by KWIK MORTGAGE and its control persons on NMLS, as applicable, nothing in the issuance of this Consent Order shall adversely affect the ability of KWIK 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 1st day of August 2014. _______/s/_________
Howard F. Pitkin
I, Nishith R. Parikh, state on behalf of KWIK MORTGAGE CORPORATION, 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 KWIK MORTGAGE CORPORATION; that KWIK MORTGAGE CORPORATION agrees freely and without threat or coercion of any kind to comply with the sanction entered and terms and conditions ordered herein; and that KWIK MORTGAGE CORPORATION voluntarily agrees to enter into this Consent Order, expressly waiving the procedural rights set forth herein as to the matters described herein.
Name: Nishith R. Parikh
Title: Sr. Vice President
KWIK MORTGAGE CORPORATION
State of: New Jersey
County of: Middlesex
On this the 21 day of July 2014, before me, Carmen S. Azcuidiaz, the undersigned officer, personally appeared Nishith Parikh who acknowledged himself to be the Sr. Vice Pres of KWIK MORTGAGE CORPORATION, a corporation, and that he as such Sr. Vice Pres, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself as Sr. Vice Pres.
In witness whereof I hereunto set my hand.
Date Commission Expires: 10/04/2017