| * * * * * * * * * * * * * * * * * * * * * * * IN THE MATTER OF: KAREN ELIZABETH KARKER | * * * * * * * * * * * * * * * | 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, Karker is an individual who has not been licensed as a mortgage loan originator in Connecticut since January 1, 2010;
WHEREAS, REAL is a Connecticut limited liability company not presently licensed as a mortgage broker in Connecticut;
WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking, conducted an investigation pursuant to Section 36a-17 of the Connecticut General Statutes into the activities of Respondents 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, as a result of such investigation, the Commissioner alleges that on or about February 9, 2012, Karker acted as a mortgage loan originator without the required license, in violation of Section 36a-486(b) of the then applicable Connecticut General Statutes;
WHEREAS, also as a result of such investigation, the Commissioner alleges that, on or about February 9, 2012, REAL acted as a mortgage broker without the required license, in violation of Section 36a-486(a) of the then applicable Connecticut General Statutes;
WHEREAS, the Commissioner believes that such allegations would support initiation of enforcement proceedings against Respondents, including proceedings to issue an order to cease and desist against each Respondent pursuant to Sections 36a-494(b) and 36a-52(a) of the Connecticut General Statutes, an order to make restitution against each Respondent pursuant to Sections 36a-494(b) and 36a-50(c) of the Connecticut General Statutes, and impose a civil penalty of up to one hundred thousand dollars ($100,000) per violation upon each Respondent 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;
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 Respondents now desire to resolve the allegations set forth herein;
WHEREAS, the Commissioner and Respondents acknowledge the possible consequences of formal administrative proceedings, and Respondents voluntarily agree to consent to the entry of the sanctions imposed below without admitting or denying any allegation set forth herein and solely for the purpose of obviating the need for further formal administrative proceedings concerning the allegations set forth herein;
WHEREAS, Respondents represent that they have refunded the fees paid by a Connecticut resident in connection with the February 9, 2012 origination of the Connecticut resident’s residential mortgage loan, have not otherwise acted as a mortgage loan originator or mortgage broker in Connecticut without the required license, and will not act as a mortgage loan originator or a mortgage broker in Connecticut in the future without first obtaining the required license;
WHEREAS, Respondents specifically assure the Commissioner that the violations alleged herein shall not occur in the future;
AND WHEREAS, Respondents, through their execution of this Consent Order, voluntarily agree to waive their procedural rights, including a right to notice and an opportunity for hearing as it pertains to the allegations set forth herein, and voluntarily waive their right to seek judicial review or otherwise challenge or contest the validity of this Consent Order.
CONSENT TO ENTRY OF SANCTIONS
WHEREAS, each Respondent, through the execution of this Consent Order, consents to the Commissioner’s entry of a Consent Order imposing the following sanctions:
| 1. | Karker shall immediately cease and desist from acting as a mortgage loan originator without a license, in violation of Section 36a-486(b) of the Connecticut General Statutes; and |
| 2. | REAL shall immediately cease and desist from acting as a mortgage broker without a license, in violation of Section 36a-486(a) of the Connecticut General Statutes. |
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 any Respondent based upon the allegations contained herein; provided that issuance of this Consent Order is without prejudice to the right of the Commissioner to take enforcement action against any Respondent 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 any Respondent and reflected herein is subsequently discovered to be untrue; |
| 3. | So long as this Consent Order is promptly disclosed by Karker on NMLS, as applicable, nothing in the issuance of this Consent Order shall adversely affect the ability of Karker 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; |
| 4. | Nothing in the issuance of this Consent Order shall adversely affect the ability of REAL 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 20th day of May 2015. _______/s/_________
Jorge L. Perez
Banking Commissioner
I, Karen Elizabeth. Karker, state that I have read the foregoing Consent Order; that I know and fully understand its contents; that I agree freely and without threat or coercion of any kind to comply with the sanctions entered and terms and conditions ordered herein; and that I voluntarily agree to enter into this Consent Order, expressly waiving the procedural rights set forth herein as to the matters described herein.
_______/s/_________
Karen Elizabeth Karker
State of: Connecticut
County of: New Haven
On this the 14th day of May 2015, before me Joseph S. Dey III, the undersigned officer, personally appeared Karen Elizabeth Karker known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument and acknowledged that he executed the same for the purposes therein contained.
In witness whereof I hereunto set my hand.
_____________/s/______________
Commissioner of the Superior Court
I, Karen E. Karker, state on behalf of Real Estate Alternative Lending, 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 Real Estate Alternative Lending, LLC; that Real Estate Alternative Lending, LLC agrees freely and without threat or coercion of any kind to comply with the sanctions entered and terms and conditions ordered herein; and that Real Estate Alternative Lending, 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: Karen E. Karker
Title: Managing Member
Real Estate Alternative Lending, LLC
State of: Connecticut
County of: New Haven
On this the 14th day of May 2015, before me, Joseph S. Dey III, the undersigned officer, personally appeared Karen E. Karker who acknowledged herself to be the Member of Real Estate Alternative Lending, LLC, a member managed/manager managed limited liability company, and that 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 herself as Member.
In witness whereof I hereunto set my hand.
______________/s/_____________
Commissioner of the Superior Court