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IN THE MATTER OF: AMERICAN NEIGHBORHOOD |
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CONSENT ORDER |
WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Part VII of Chapter 669, Sections 36a-715 to 36a-719l, inclusive, of the Connecticut General Statutes, “Mortgage Servicing”;
WHEREAS, American Neighborhood is a Delaware limited liability company that is currently licensed as a consumer collection agency under Part XII of Chapter 669, Sections 36a-800 to 36a-812, inclusive, of the Connecticut General Statutes, and as a mortgage lender under Part I of Chapter 668, Sections 36a-485 to 36a-534c, inclusive, of the Connecticut General Statutes, with its main office located at 700 East Gate Drive, Suite 400, Mount Laurel, New Jersey;
WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking, conducted a routine investigation into the business activities of American Neighborhood 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, as a result of such investigation, the Commissioner alleges that, from approximately January 2015 to March 2016, American Neighborhood acted as a mortgage servicer while neither licensed nor exempt from licensure, in violation of Section 36a-718 of the 2016 Supplement to the General Statutes;
WHEREAS, the Commissioner believes that such allegation would support initiation of enforcement proceedings against American Neighborhood pursuant to Sections 36a-719j(b), 36a-52(a) 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 2016 Supplement to the 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, both the Commissioner and American Neighborhood acknowledge the possible consequences of formal administrative proceedings, and American Neighborhood voluntarily agrees 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 formal administrative proceedings concerning the allegation set forth herein;
WHEREAS, the Commissioner and American Neighborhood now desire to resolve the matters set forth herein;
WHEREAS, American Neighborhood acknowledges that this Consent Order is a public record and is a reportable event for purposes of the regulatory disclosure questions on the Nationwide Multistate Licensing System and Registry (“NMLS”), as applicable;
WHEREAS, since at least January 1, 2015, American Neighborhood has had fidelity bond and errors and omissions coverage in amounts exceeding the coverage required by Section 36a-719c of the 2016 Supplement to the General Statutes and since March 23, 2016, has named the Commissioner as an additional loss payee on said fidelity bond and errors and omission coverage and provided the supplemental mortgage servicer surety bond required pursuant to Section 36a-719c of the 2016 Supplement to the General Statutes, in order to avail itself of the exemption to mortgage servicer licensure set forth in Section 36a-718(b)(4) of the 2016 Supplement to the General Statutes;
AND WHEREAS, American Neighborhood, through its execution of this Consent Order, voluntarily agrees to waive its procedural rights, including a right to a notice and an opportunity for hearing as it pertains to the allegation 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, American Neighborhood, through its execution of this Consent Order, consents to the Commissioner’s entry of this Consent Order imposing the following sanctions:
| 1. | American Neighborhood shall cease and desist from acting as a mortgage servicer while neither licensed nor exempt from licensure, in violation of Section 36a-718 of the 2016 Supplement to the General Statutes; and |
| 2. | No later than the date this Consent Order is executed by American Neighborhood, it shall remit to the Department of Banking by wire transfer, cashier’s check, certified check or money order, made payable to “Treasurer, State of Connecticut”, the sum of Ten Thousand Dollars ($10,000) 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 American Neighborhood based upon the allegation set forth herein; provided that issuance of this Consent Order is without prejudice to the right of the Commissioner to take enforcement action against American Neighborhood 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 American Neighborhood and reflected herein is subsequently discovered to be untrue; |
| 3. | Upon issuance of this Consent Order by the Commissioner, and so long as this Consent Order is promptly disclosed by American Neighborhood and its control persons on NMLS, as applicable, nothing in the issuance of this Consent Order shall adversely affect the ability of American Neighborhood to apply for or obtain initial or renewal licenses under Part I of Chapter 668, Part VII of Chapter 669 or Part XII of Chapter 669 of the Connecticut General Statutes, provided that all legal requirements for such licenses are satisfied; and |
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This Consent Order shall become final when issued.
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Issued at Hartford, Connecticut
this 8th day of September 2016. ______/s/__________
Jorge L. Perez
Banking Commissioner
I, Joseph Panebianco, state on behalf of American Neighborhood Mortgage Acceptance Company LLC d/b/a AnnieMac Home Mortgage 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 American Neighborhood Mortgage Acceptance Company LLC d/b/a AnnieMac Home Mortgage; that American Neighborhood Mortgage Acceptance Company LLC d/b/a AnnieMac Home Mortgage agrees freely and without threat or coercion of any kind to comply with the provisions of this Consent Order; and that American Neighborhood Mortgage Acceptance Company LLC d/b/a AnnieMac Home Mortgage 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: Joseph Panebianco
Title: CEO
American Neighborhood Mortgage Acceptance
Company LLC d/b/a AnnieMac Home Mortgage
State of: New Jersey
County of: Burlington
On this the 24 day of August 2016, before me, Marie Ellena Vespa, the undersigned officer, personally appeared Joseph Panebianco who acknowledged himself/herself to be the CEO of American Neighborhood Mortgage Acceptance Company LLC d/b/a AnnieMac Home Mortgage, a member managed/manager managed limited liability company, and that he/she as such CEO, 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 CEO.
In witness whereof I hereunto set my hand.
__________/s/___________
Notary Public
Date Commission Expires: 09/02/2020