* * * * * * * * * * * * * * * * * * * * * * * *

IN THE MATTER OF:

HOME LOAN DIVISION
("Home Loan")

SERRANO FINANCIAL LLC
d/b/a DEFAULT SERVICING
("Default Servicing")

KELVIN PICKERING
("Pickering")


    (collectively, "Respondents")

* * * * * * * * * * * * * * * * * * * * * * * *

*
*
*
*

*
*
*
*
*
*
*
*
*
*
*
*
*

ORDER TO CEASE AND DESIST

AND

ORDER IMPOSING CIVIL PENALTY


I.  PRELIMINARY STATEMENT


WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Sections 36a-671 to 36a-671e, inclusive, of the Connecticut General Statutes contained in Part II of Chapter 669 of the Connecticut General Statutes, “Debt Adjusters and Debt Negotiation”;

WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking (“Department”), conducted an investigation of the activities of Respondents, pursuant to the authority granted by Section 36a-17 of the Connecticut General Statutes, to determine if they had violated, were violating or were about to violate the provisions of the Connecticut General Statutes within the jurisdiction of the Commissioner;

WHEREAS, on March 2, 2015, the Commissioner, acting pursuant to Sections 36a-52(b), 36a-50(c), 36a-671a(b), 36a-52(a) and 36a-50(a) of the Connecticut General Statutes, issued a Temporary Order to Cease and Desist, Order to Make Restitution (“Order to Make Restitution”), Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (collectively “Order and Notice”) against Respondents, which Order and Notice is incorporated herein by reference;

WHEREAS, on March 3, 2015, the Order and Notice was sent by certified mail, return receipt requested, to Home Loan (Certified Mail No. 70120470000147903607); Default Servicing (Certified Mail Nos. 70120470000147903614, 70120470000147903652, 70120470000147903669 and 70120470000147903621); Default Servicing’s registered agent (Certified Mail No. 70120470000147903645); and Pickering (Certified Mail No. 70120470000147903638);

WHEREAS, the Order and Notice provided Respondents with the opportunity for a hearing, and stated that if a hearing was not requested by any Respondent within 14 days of each Respondent’s receipt, the Order to Make Restitution shall remain in effect and become permanent against each Respondent and the Commissioner would issue an order that each Respondent cease and desist from violating Section 36a-671(b) 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 each Respondent;

WHEREAS, on March 17, 2015, the Order and Notice sent to Home Loan was returned to the Department marked “Return to Sender – No Such Number – Unable to Forward”;
WHEREAS, on March 16, 2015, the Order and Notice sent to Default Servicing by Certified Mail Nos. 70120470000147903652 and 70120470000147903621, were returned to the Department marked “Return to Sender – Not Deliverable as Addressed – Unable to Forward”;

WHEREAS, on March 20, 2015, the Order and Notice sent to Default Servicing by Certified Mail No. 70120470000147903669, was returned to the Department marked “Return to Sender – Refused – Unable to Forward”;

WHEREAS, on March 20, 2015, the Order and Notice sent to Default Servicing’s registered agent was returned to the Department marked “Return to Sender – Refused – Unable to Forward”;

WHEREAS, on April 9, 2015, the Order and Notice sent to Default Servicing by Certified Mail No. 70120470000147903614 was returned to the Department marked “Return to Sender – Unclaimed – Unable to Forward”;

WHEREAS, on April 9, 2015, the Order and Notice sent to Pickering was returned to the Department marked “Return to Sender – Unclaimed – Unable to Forward”;

WHEREAS, Section 36a-52(a) of the Connecticut General Statutes provide, 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 provide, 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(c) of the Connecticut General Statutes provides, in pertinent part, that “[t]he order shall be deemed received by the person on the earlier of the date of actual receipt or seven days after mailing or sending”;
WHEREAS, each Respondent failed to request a hearing within the prescribed time period;

WHEREAS, the Commissioner alleged in the Order and Notice, with respect to the activity described therein, that each Respondent engaged in debt negotiation in this state without obtaining the required license, in violation of Section 36a-671(b) of the Connecticut General Statutes.  Such violation forms the basis to issue an order to cease and desist pursuant to Sections 36a-671a(b) and 36a-52(a) of the Connecticut General Statutes, to issue an order to make restitution pursuant to Sections 36a-671a(b) and 36a-50(c) of the Connecticut General Statutes, and to impose a civil penalty pursuant to Sections 36a-671a(b) and 36a-50(a) of the Connecticut General Statutes upon each Respondent;

WHEREAS, also in the Order and Notice, the Commissioner ordered, pursuant to Section 36a-
50(c) of the Connecticut General Statutes, that not later than thirty (30) days from the date the Order to Make Restitution becomes permanent, Respondents repay $2,253.38 to an identified Connecticut resident plus interest, and repay to any other Connecticut resident who entered into an agreement for debt negotiation services with Respondents on and after October 1, 2009, any fees paid by such resident plus interest, and provide evidence of such repayments to the Director of the Consumer Credit Division;
WHEREAS, the Order to Make Restitution remains in effect and became permanent against each Respondent on March 25, 2015;
WHEREAS, Section 36a-52(a) of the Connecticut General Statutes provides, in pertinent part, that “[i]f the person does not request a hearing within the time specified in the notice or fails to appear at the hearing, the commissioner shall issue an order to cease and desist against the person.  No such order shall be issued except in accordance with the provisions of chapter 54”;
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 or fails to appear at the hearing, the commissioner may, as the facts require, order that a civil penalty not exceeding one hundred thousand dollars per violation be imposed upon such person”;
WHEREAS, Section 36a-50(a)(3) of the Connecticut General Statutes provides that “[e]ach action undertaken by the commissioner under this subsection shall be in accordance with the provisions of chapter 54”;

AND WHEREAS, Section 36a-1-31(a) of the Regulations of Connecticut State Agencies provides, in pertinent part, that “[w]hen a party fails to request a hearing within the time specified in the notice, the allegations against the party may be deemed admitted.  Without further proceedings or notice to the party, the commissioner shall issue a final decision in accordance with section 4-180 of the Connecticut General Statutes and section 36a-1-52 of the Regulations of Connecticut State Agencies”.



II.  FINDINGS OF FACT AND CONCLUSIONS OF LAW

1.
The Commissioner finds that the matters asserted, as set forth in Section II of the Order and Notice, shall constitute findings of fact with respect to each Respondent, as applicable, within the meaning of Section 4-180(c) of the Connecticut General Statutes, and that the conclusions, as set forth in Section III of the Order and Notice, shall constitute conclusions of law with respect to each Respondent, as applicable, within the meaning of Section 4-180(c) of the Connecticut General Statutes and Section 36a-1-52 of the Regulations of Connecticut State Agencies.
2.
The Commissioner finds that Respondents have engaged in acts or conduct which, pursuant to Sections 36a-671a(b) and 36a-52(a) of the Connecticut General Statutes, forms the basis to issue an order to cease and desist against each Respondent, and, pursuant to Sections 36a-671a(b) and 36a-50(a) of the Connecticut General Statutes, forms the basis to impose a civil penalty upon each Respondent.
3.
The Commissioner finds that the Order and Notice was given in compliance with Section 36a-52(a), subsections (a) and (c) of Section 36a-50 and Section 4-177 of the Connecticut General Statutes.


III.  ORDER

Having read the record, I HEREBY ORDER, pursuant to Sections 36a-671a(b), 36a-52(a) and 36a-50(a) of the Connecticut General Statutes that:

1.
Home Loan Division CEASE AND DESIST from violating Section 36a-671(b) of the Connecticut General Statutes;
2.
A CIVIL PENALTY of One Hundred Thousand Dollars ($100,000) be imposed upon Home Loan Division, to be remitted to the Department of Banking by cashier’s check, certified check or money order, made payable to “Treasurer, State of Connecticut”, no later than thirty (30) days from the date this Order is mailed;
3.Serrano Financial LLC d/b/a Default Servicing CEASE AND DESIST from violating Section 36a-671(b) of the Connecticut General Statutes;
4.A CIVIL PENALTY of One Hundred Thousand Dollars ($100,000) be imposed upon Serrano Financial LLC d/b/a Default Servicing, to be remitted to the Department of Banking by cashier’s check, certified check or money order, made payable to “Treasurer, State of Connecticut”, no later than thirty (30) days from the date this Order is mailed;
5.Kelvin Pickering CEASE AND DESIST from violating Section 36a-671(b) of the Connecticut General Statutes;
6.A CIVIL PENALTY of One Hundred Thousand Dollars ($100,000) be imposed upon Kelvin Pickering, to be remitted to the Department of Banking by cashier’s check, certified check or money order, made payable to “Treasurer, State of Connecticut”, no later than thirty (30) days from the date this Order is mailed;
7.
This Order shall become effective when mailed.

Dated at Hartford, Connecticut
this 9th day of June 2015.             

 ________/s/_________
 Jorge L. Perez
 Banking Commissioner


This Order was sent by certified mail,
return receipt requested, to the following
Respondents and/or their agents on June 9, 2015.


Home Loan Division                                      Certified Mail No. 70143490000235285434
1539 W. 1st Avenue
Santa Ana, California 92705

Serrano Financial LLC                                   Certified Mail No. 70143490000235285441
d/b/a Default Servicing
1974 Placentia Avenue
Costa Mesa, California 92627

Serrano Financial LLC                                   Certified Mail No. 70143490000235285458
d/b/a Default Servicing
1000 Bristol Street North, Suite 17-106
Newport Beach, California 92660

Serrano Financial LLC                                   Certified Mail No. 70143490000253285465
d/b/a Default Servicing
4001 S 700 E, Suite 500-C
Salt Lake City, Utah 84107

Serrano Financial LLC                                   Certified Mail No. 70143490000235285472
d/b/a Default Servicing
CO PZ Consulting
5000 Birch Street W Tower, Suite #3000
Newport Beach, California 92660

Company Services Inc., Registered Agent       Certified Mail No. 70143490000235285489
for Serrano Financial LLC
4001 S 700 E, Suite 500-C
Salt Lake City, Utah 84107

Kelvin Pickering                                            Certified Mail No. 70143490000235285496
1974 Placentia Avenue
Costa Mesa, California 92627




Administrative Orders and Settlements