| * * * * * * * * * * * * * * * * * * * * * * * IN THE MATTER OF: NEW MILFORD MORTGAGE | * * * * * * * * * * * * | 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, New Milford Mortgage is a Connecticut limited liability company that is presently licensed to act 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, investigated the activities of New Milford Mortgage, pursuant to the authority granted by Sections 36a-17(a) and 36a-498f of the Connecticut General Statutes, 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 New Milford Mortgage, which Notice is incorporated herein by reference;
WHEREAS, the Commissioner alleged in the Notice that New Milford Mortgage failed to timely file its Mortgage Call Report (“MCR”) 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 February 6, 2013 (“Consent Order”); and (3) a basis to revive allegations previously made by the Commissioner in a 2012 Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing that New Milford Mortgage had failed to file various prior MCRs on their respective due dates, which allegations were admitted by New Milford Mortgage in connection with the Consent Order. All of the foregoing 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 New Milford Mortgage (Certified Mail No. 70121010000172646615);
WHEREAS, on May 7, 2014, New Milford Mortgage received the Notice and on May 13, 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 New Milford Mortgage now desire to resolve the matters alleged in the Notice and set forth herein;
WHEREAS, New Milford Mortgage admits that it did not file the report described in the Notice by its due date 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, New Milford 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, New Milford Mortgage herein represents to the Commissioner that 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, New Milford 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, New Milford Mortgage, through its execution of this Consent Order, voluntarily agrees to waive any applicable procedural rights, including New Milford Mortgage’s 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, New Milford 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 New Milford Mortgage, New Milford 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 Four Thousand Five Hundred Dollars ($4,500) 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 New Milford Mortgage, New Milford 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, New Milford 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 New Milford 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 New Milford 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 New Milford 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 New Milford Mortgage and reflected herein is subsequently discovered to be untrue. It is expressly understood and agreed that the subsequent failure by New Milford 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 New Milford 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 New Milford 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 New Milford Mortgage in Connecticut; |
| 4. | Subject to the foregoing, and so long as this Consent Order is promptly disclosed by New Milford Mortgage and its control persons on NMLS, as applicable, nothing in the issuance of this Consent Order shall adversely affect the ability of New Milford 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 18th day of June 2014. _______/s/_________
Howard F. Pitkin
Banking Commissioner
I, William C. Granata, state on behalf of New Milford Mortgage Company, 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 New Milford Mortgage Company, LLC; that New Milford Mortgage Company, LLC agrees freely and without threat or coercion of any kind to comply with the sanction entered and terms and conditions ordered herein; and that New Milford Mortgage Company, 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: William C. Granata
Title: Owner
New Milford Mortgage Company
State of: Connecticut
County of: Litchfield
On this the 18th day of June 2014, before me, Bradley A. Kamp, the undersigned officer, personally appeared William C. Granata, who acknowledged himself/herself to be the Member of New Milford Mortgage Company, 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 Member.
In witness whereof I hereunto set my hand.
_________/s/_________
Notary Public
Date Commission Expires: Sep. 30, 2015