| * * * * * * * * * * * * * * * * * * * * * * * * IN THE MATTER OF: GREAT WESTERN FINANCIAL | * * * * * * * * * * * | 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, Great Western Financial Services is a Texas corporation that is currently licensed in Connecticut 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 and 36a-498f of the Connecticut General Statutes into the activities of Great Western Financial Services 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 29, 2015, 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 Great Western Financial Services, which Notice is incorporated herein by reference;
WHEREAS, the Commissioner alleged in the Notice that Great Western Financial Services failed to file a mortgage call report (“MCR”) that was due on March 31, 2015 (“Standard – Financial Condition – 2014”). The Commissioner alleged that such failure to file the Standard – Financial Condition – 2014 MCR on the date that it was due constituted: (1) a violation of Section 36a-534b(c)(3) of Connecticut General Statutes; (2) violations of orders of the Commissioner contained in Consent Orders dated April 26, 2013 (“2013 Consent Order”) and July 1, 2014 (“2014 Consent Order”); and (3) a basis to revive allegations previously made by the Commissioner in two different actions captioned Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing – one issued on December 17, 2012 and one issued on March 14, 2014 – that Respondent had failed to file other MCRS, and which allegations were admitted by Respondent in connection with the 2013 Consent Order and the 2014 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 June 1, 2015, the Notice was sent by certified mail, return receipt requested, to Great Western Financial Services (Certified Mail No. 70143490000235345077);
WHEREAS, on June 5, 2015, Great Western Financial Services received the Notice and no request for a hearing was 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, and the Commissioner is willing to resolve the matter by consent order notwithstanding the failure of Great Western Financial Services to request a hearing;
WHEREAS, the Commissioner and Great Western Financial Services now desire to resolve the matters alleged in the Notice and set forth herein;
WHEREAS, Great Western Financial Services admits that the Standard – Financial Condition – 2014 MCR described in the Notice and set forth herein was not filed on its due date;
WHEREAS, Great Western Financial Services 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, Great Western Financial Services voluntarily agrees to consent to the entry of the sanctions 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, Great Western Financial Services 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, Great Western Financial Services, through its execution of this Consent Order, voluntarily agrees to waive any applicable procedural rights as it may pertain 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 SANCTIONS
WHEREAS, Great Western Financial Services, through its execution of this Consent Order, consents to the Commissioner’s entry of a Consent Order imposing the following sanctions:
| 1. | No later than the date this Consent Order is executed by Great Western Financial Services, Great Western Financial Services shall request surrender of its Connecticut mortgage lender license on NMLS. Great Western Financial Services (and any subsequent company with Fred E. McDonald III or Fred E. McDonald IV serving in the capacity of control person, qualified individual or branch manager) shall not be eligible to apply for licensure as a mortgage lender, mortgage correspondent lender, mortgage broker or mortgage servicer under applicable provisions of the Connecticut General Statutes for a period of time that is eighteen (18) months from the date that the surrender request is accepted on NMLS by the Commissioner; and |
| 2. | No later than the date this Consent Order is executed by Great Western Financial Services, Great Western Financial Services 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 Thousand Dollars ($5,000) as a civil penalty. |
CONSENT ORDER
NOW THEREFORE, the Commissioner enters the following:
| 1. | The Sanctions set forth above be and are 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 Great Western Financial Services based upon the allegation set forth in the Notice and contained herein; provided that issuance of this Consent Order is without prejudice to the right of the Commissioner to take enforcement action against Great Western Financial Services 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 Great Western Financial Services and reflected herein is subsequently discovered to be untrue; |
| 3. | Subject to the foregoing, and so long as this Consent Order is promptly disclosed by Great Western Financial Services and its control persons on NMLS, as applicable, nothing in the issuance of this Consent Order shall adversely affect the ability of Great Western Financial Services to apply for or obtain licenses or renewal licenses as a mortgage lender, mortgage correspondent lender, mortgage broker or mortgage servicer (a) after payment of the civil penalty imposed above; (b) after the expiration of the period that is eighteen (18) months from the date that the surrender request is accepted on NMLS by the Commissioner; and (c) provided that all applicable legal requirements for such license are satisfied; and |
| 4. | This Consent Order shall become final when issued. |
Issued at Hartford, Connecticut
this 4th day of September 2015. _______/s/_________
Jorge L. Perez
Banking Commissioner
I, Fred E. McDonald IV, state on behalf of Great Western Financial Services, Inc., 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 Great Western Financial Services, Inc.; that Great Western Financial Services, Inc., agrees freely and without threat or coercion of any kind to comply with the sanctions entered and terms and conditions ordered herein; and that Great Western Financial Services, Inc., voluntarily agrees to enter into this Consent Order, expressly waiving the procedural rights set forth herein as to the matters described herein.
________/s/___________
Name: Fred E. McDonald IV
Title: Vice-President
Great Western Financial Services, Inc.
State of: Texas
County of: Collin
On this the 31 day of July 2015, before me, Melissa Harral, the undersigned officer, personally appeared Fred E. McDonald IV who acknowledged himself/herself to be the Vice-President of Great Western Financial Services, Inc., a corporation, and that he/she as such Vice-President, 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 Vice-President.
In witness whereof I hereunto set my hand.
_________/s/_________
Notary Public
Date Commission Expires: August 22, 2017