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IN THE MATTER OF:
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, Residential Mortgage is a Maine 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, on May 27, 2014, the Commissioner, through the Consumer Credit Division of the Department of Banking, conducted an investigation pursuant to Section 36a-17(a) of the Connecticut General Statutes, as amended by Public Acts 14-7 and 14-89, and Section 36a-498f of the Connecticut General Statutes into the activities of Residential 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, as a result of such investigation, the Commissioner alleges that Residential Mortgage,
changed the address of its branch office specified on its most recent filing with the Nationwide Mortgage Licensing System and Registry (“NMLS”) and failed to file such change with NMLS at least 30 calendar days prior to such change, in violation of Section 36a-490(b) of the Connecticut General Statutes;
WHEREAS, the Commissioner believes that such allegation would support initiation of enforcement proceedings against Residential Mortgage, including proceedings to revoke Residential Mortgage’s license pursuant to Section 36a-494(a) and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, issue a cease and desist order against Residential Mortgage pursuant to Sections 36a-494(b) and 36a-52(a) of the Connecticut General Statutes, and impose a civil penalty of up to one hundred thousand dollars ($100,000) per violation upon Residential Mortgage pursuant to Sections 36a-494(b) and 36a-50(a) of the Connecticut General Statutes;
WHEREAS, initiation of such enforcement proceedings would constitute a “contested case” within the meaning of Section 4-166(4) of the Connecticut General Statutes, as amended by Public Act 14-187;
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, both the Commissioner and Residential Mortgage acknowledge the possible consequences of formal administrative proceedings, and Residential Mortgage voluntarily agrees to consent to the entry of the sanction described below without admitting or denying any allegation contained herein and solely for the purpose of obviating the need for further formal administrative proceedings concerning the allegation contained herein;
WHEREAS, Residential Mortgage acknowledges that this Consent Order is a public record and is a reportable event for purposes of NMLS, as applicable;
WHEREAS, Residential Mortgage herein represents to the Commissioner that it has reviewed and updated its internal policies, procedures and controls for assessing whether a potential change to the address of the branch specified on its most recent filing with NMLS will require it to file such change with NMLS at least 30 calendar days prior to such change, and, in connection with such new address of the branch, to provide, directly to the Commissioner, a bond rider or endorsement, or addendum, as applicable, to the surety bond on file with the Commissioner that reflects the new address of the branch;
AND WHEREAS, Residential Mortgage, through its execution of this Consent Order, voluntarily agrees to waive its procedural rights, including a right to notice and an opportunity for hearing as it pertains to the allegation 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, Residential 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 Residential Mortgage, Residential 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 Five Hundred Dollars ($500) as a civil penalty.
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 Residential Mortgage based upon the allegation contained herein; provided that issuance of this Consent Order is without prejudice to the right of the Commissioner to take enforcement action against Residential 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 Residential Mortgage and reflected herein is subsequently discovered to be untrue;|
|3.||So long as this Consent Order is promptly disclosed by Residential Mortgage and its control persons, as applicable, on NMLS, nothing in the issuance of this Consent Order shall adversely affect the ability of Residential 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, and for its mortgage loan originators to apply for or obtain licensure from 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 3rd day of July 2014. _______/s/_________
Howard F. Pitkin
I, James R. Seely, state on behalf of Residential Mortgage Services Inc. d/b/a Residential Mortgage Services, 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 Residential Mortgage Services Inc. d/b/a Residential Mortgage Services; that Residential Mortgage Services Inc. d/b/a Residential Mortgage Services agrees freely and without threat or coercion of any kind to comply with the sanction entered and terms and conditions ordered herein; and that Residential Mortgage Services Inc. d/b/a Residential Mortgage Services voluntarily agrees to enter into this Consent Order, expressly waiving the procedural rights set forth herein as to the matters described herein.
Name: James R. Seely
Title: President & Chief Executive Officer
Residential Mortgage Services Inc.
d/b/a Residential Mortgage Services
State of: Maine
County of: Cumberland
On this the 1st day of July 2014, before me, Tammy J. Bellino, the undersigned officer, personally appeared James R. Seely who acknowledged himself/herself to be the President & CEO of Residential Mortgage Services Inc. d/b/a Residential Mortgage Services, 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.
Date Commission Expires: November 3, 2018