| * * * * * * * * * * * * * * * * * * * * * * * IN THE MATTER OF: POLARIS FUNDING | * * * * * * * * * * * * | 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, Polaris Funding Group is a Connecticut limited liability company that is currently 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 (“Division”) of the Department of Banking (“Department”), investigated the activities of Polaris Funding Group 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 Polaris Funding Group, which Notice is incorporated herein by reference;
WHEREAS, the Commissioner alleged in the Notice that Polaris Funding Group failed to 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 September 18, 2013 (“Consent Order”); and (3) a basis to revive allegations previously made by the Commissioner in a 2013 Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing that Polaris Funding Group had failed to timely file various prior MCRs on their respective due dates, which allegations were admitted by Polaris Funding Group 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 Polaris Funding Group (Certified Mail No. 70121010000172646639);
WHEREAS, the Notice provided Polaris Funding Group 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 Polaris Funding Group 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 Polaris Funding Group;
WHEREAS, on May 13, 2014, the Notice sent to Polaris Funding Group was returned to the Department marked “Return to Sender – Unclaimed – Unable to Forward”;
WHEREAS, Section 36a-52(a) of the Connecticut General Statutes provides, in pertinent part, that “[t]he notice shall be deemed received by the person on the earlier of the date of actual receipt or seven days after mailing or sending”;
WHEREAS, Section 36a-50(a)(1) of the Connecticut General Statutes provides, in pertinent part, that “[t]he notice shall be deemed received by the person on the earlier of the date of actual receipt or seven days after mailing or sending”;
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, in an e-mail dated June 5, 2014, Polaris Funding Group represented to the Division that it learned of the Notice on June 4, 2014;
WHEREAS, as a result of further investigation, the Commissioner herein further alleges that Polaris Funding Group subsequently failed to timely file its 2014 Q2 MCR that was due on August 14, 2014;
WHEREAS, notwithstanding the foregoing, the Commissioner and Polaris Funding Group now desire to resolve the matters alleged in the Notice and set forth herein;
WHEREAS, Polaris Funding Group 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, Polaris Funding Group 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, Polaris Funding Group 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, Polaris Funding Group, through its execution of this Consent Order, voluntarily agrees to waive any applicable procedural rights as it pertains to the allegations contained in the Notice and set forth herein, including any right to further notice or a hearing, 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, Polaris Funding Group, 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 Polaris Funding Group, Polaris Funding Group shall request surrender of its mortgage broker license and Polaris Funding Group or any other company with Robert Szumilas as a control person shall not be eligible to apply for licensure as a mortgage lender, mortgage correspondent lender or mortgage broker before the date that is one year from the date that the license surrender request is accepted on NMLS by the Commissioner.
CONSENT ORDER
NOW THEREFORE, the Commissioner enters the following:
| 1. | The Sanction 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 Polaris Funding Group 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 Polaris Funding Group 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 Polaris Funding Group and reflected herein is subsequently discovered to be untrue. |
| 3. | So long as this Consent Order is promptly disclosed by Polaris Funding Group and its control persons on NMLS, as applicable, nothing in the issuance of this Consent Order shall adversely affect the ability of Polaris Funding Group or any other company with Robert Szumilas as a control person 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 after the date that is one year from the date that the license surrender request is accepted on NMLS by the Commissioner, provided all applicable legal requirements for such license are satisfied; and |
| 4. | This Consent Order shall become final when issued. |
Issued at Hartford, Connecticut
this 21st day of November 2014. _______/s/_________
Howard F. Pitkin
Banking Commissioner
I, Robert W. Szumilas, state on behalf of Polaris Funding Group, 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 Polaris Funding Group, LLC; that Polaris Funding Group, 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 Polaris Funding Group, 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: Robert W. Szumilas
Title: Managing Member
Polaris Funding Group, LLC
State of: Connecticut
County of: Middlesex
On this the 13 day of November 2014, before me, Grazyna Pomianowska, the undersigned officer, personally appeared Robert W. Szumilas who acknowledged himself/herself to be the Managing Member of Polaris Funding Group, 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: 9/30/19