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, the Commissioner, through the Consumer Credit Division of the Department of Banking, conducted an investigation of the activities of Respondents, pursuant to the authority granted by Section 36a-17 of the Connecticut General Statutes, as amended by Public Acts 14-7 and 14-89, 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 December 8, 2014, the Commissioner, acting pursuant to Sections 36a-494(b), 36a-50(c), 36a-52(a) and 36a-50(a) of the Connecticut General Statutes, issued an 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 December 10, 2014, the Order and Notice was sent by certified mail, return receipt requested, to UMC (Certified Mail Nos. 70120470000147902129 and 70120470000147902136) and to Chodosh (Certified Mail No. 70120470000147902143);

WHEREAS, the Order and Notice provided UMC with the opportunity for a hearing, and stated that if a hearing was not requested within 14 days of its receipt, the Order to Make Restitution shall remain in effect and become permanent against UMC, and the Commissioner would issue an order that UMC cease and desist from violating Sections 36a-53b, 36a-486(a) and 36a-498(f) of the Connecticut General Statutes, and may order a civil penalty not to exceed One Hundred Thousand Dollars ($100,000) per violation be imposed upon UMC;

WHEREAS, the Order and Notice provided Chodosh with the opportunity for a hearing, and stated that if a hearing was not requested within 14 days of its receipt, the Order to Make Restitution shall remain in effect and become permanent against Chodosh, and the Commissioner would issue an order that Chodosh cease and desist from violating Section 36a-53b 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 Chodosh;

WHEREAS, on December 13, 2014, Respondents received the Order and Notice;

WHEREAS, Respondents 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 UMC’s taking a residential mortgage loan application or offering or negotiating terms of a residential mortgage loan to a Connecticut resident for compensation or gain constitutes acting as a mortgage broker in this state without a license, in violation of Section 36a-486(a) of the Connecticut General Statutes.  Such violation forms the basis to issue an order to cease and desist pursuant to Sections 36a-494(b)(1) and 36a-52(a) of the Connecticut General Statutes, issue an order to make restitution pursuant to Sections 36a-494(b) and 36a-50(c) of the Connecticut General Statutes, and impose a civil penalty upon UMC pursuant to Sections 36a-494(b)(1) and 36a-50(a) of the Connecticut General Statutes;

WHEREAS, the Commissioner also alleged in the Order and Notice, with respect to the activity described therein, that UMC’s requiring the payment of an advance fee by a Connecticut resident, which was neither refunded nor disclosed as non-refundable, constitutes a violation of Section 36a-498(f) of the Connecticut General Statutes.  Such violation forms the basis to issue an order to cease and desist pursuant to Sections 36a-494(b)(1) and 36a-52(a) of the Connecticut General Statutes, issue an order to make restitution pursuant to Sections 36a-494(b)(1) and 36a-50(c) of the Connecticut General Statutes, and impose a civil penalty upon UMC pursuant to Sections 36a-494(b)(1) and 36a-50(a) of the Connecticut General Statutes;

WHEREAS, the Commissioner also alleged in the Order and Notice, with respect to the activity described therein, that UMC’s providing a falsified residential mortgage approval letter to a Connecticut resident and requesting payment of $3,500 to UMC’s bank account in connection therewith, constitutes a violation of Section 36a-53b of the Connecticut General Statutes.  Such violation forms the basis to issue an order to cease and desist upon UMC pursuant to Section 36a-52(a) of the Connecticut General Statutes, issue an order to make restitution upon UMC pursuant to 36a-50(c) of the Connecticut General Statutes, and impose a civil penalty upon UMC pursuant to Section 36a-50(a) of the Connecticut General Statutes;

WHEREAS, the Commissioner also alleged in the Order and Notice, with respect to the activity described therein, that as UMC’s President, Chodosh employed a device, scheme or artifice to defraud, made an untrue statement of material fact or omitted to state a material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading, or engaged in an act, practice or course of business which operated or would operate as a fraud or deceit upon any person, in violation of Section 36a-53b of the Connecticut General Statutes.  Such violation forms the basis to issue an order to cease and desist upon Chodosh pursuant to Section 36a-52(a) of the Connecticut General Statutes, issue an order to make restitution upon Chodosh pursuant to 36a-50(c) of the Connecticut General Statutes, and impose a civil penalty upon Chodosh pursuant to Section 36a-50(a) of the Connecticut General Statutes;

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 an identified Connecticut resident an identified amount plus interest, and repay any other Connecticut resident who paid fees in connection with a residential mortgage loan to UMC 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 Respondents on December 28, 2014;

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”.