|* * * * * * * * * * * * * * * * * * * * * * *|
IN THE MATTER OF:
SOUND MORTGAGE, LLC
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, Sound Mortgage 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 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 Sound 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 5, 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 Sound Mortgage, which Notice is incorporated herein by reference;
WHEREAS, the Commissioner alleged in the Notice that Sound Mortgage failed to timely file its mortgage call report (“MCR”) 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 December 10, 2012 (“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 Sound Mortgage had failed to file numerous other MCRs on their due dates, which allegations were admitted by Sound 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 May 6, 2014, the Notice was sent by certified mail, return receipt requested, to Sound Mortgage (Certified Mail No. 70121010000172646653);
WHEREAS, on May 19, 2014, Sound Mortgage received the Notice, and on May 21, 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 Sound Mortgage now desire to resolve the matters alleged in the Notice and set forth herein;
WHEREAS, Sound Mortgage admits that the 2013 Financial Condition MCR described in the Notice and set forth herein was not filed on 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, Sound 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, Sound 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, Sound 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, Sound 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, Sound 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 Sound Mortgage, Sound 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.
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 Sound Mortgage, Sound Mortgage shall have satisfactorily filed on NMLS all MCRs required to date. In the future, Sound 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 Sound 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 Sound 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 Sound 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 Sound Mortgage and reflected herein is subsequently discovered to be untrue. It is expressly understood and agreed that the subsequent failure by Sound 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 Sound Mortgage is licensed, may, in addition to any other remedy available to the Commissioner, form a basis for the Commissioner to revoke or refuse to renew the license of Sound Mortgage in Connecticut;|
|4.||Subject to the foregoing, and so long as this Consent Order is promptly disclosed by Sound Mortgage and its control persons on NMLS, as applicable, nothing in the issuance of this Consent Order shall adversely affect the ability of Sound 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 9th day of September 2014. _______/s/_________
Howard F. Pitkin
I, Thatcher A. Zuse, state on behalf of Sound Mortgage, 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 Sound Mortgage, LLC; that Sound Mortgage, 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 Sound Mortgage, LLC voluntarily agrees to enter into this Consent Order, expressly waiving the procedural rights set forth herein as to the matters described herein.
Sound Mortgage, LLC
State of: Connecticut
County of: New Haven
On this the 3rd day of September 2014, before me, Casimere Nocerino, the undersigned officer, personally appeared Thatcher A. Zuse who acknowledged himself/herself to be the Owner of Sound Mortgage, LLC, a member managed/manager managed limited liability company, and that he/she as such Owner, 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 Owner.
In witness whereof I hereunto set my hand.
Date Commission Expires: 12-31-2016