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IN THE MATTER OF:
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, Americay Mortgage is a Connecticut corporation that is currently licensed in Connecticut as a mortgage broker under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
WHEREAS, on December 28, 2015, Americay Mortgage filed an application for renewal of its mortgage broker license on the Nationwide Multistate Licensing System and Registry (“NMLS”) for the January 1 through December 31, 2016 licensing period. Such application is currently pending;
WHEREAS, the Commissioner, through the Consumer Credit Division (“Division”) of the Department of Banking (“Department”), conducted an investigation pursuant to the authority granted by Sections 36a-17 and 36a-498f of the Connecticut General Statutes to determine if Americay Mortgage has violated, is violating or is about to violate the provisions of the Connecticut General Statutes within the jurisdiction of the Commissioner and to determine if Americay Mortgage continues to meet the minimum qualifications for license renewal;
WHEREAS, as a result of the investigation, the Commissioner alleges that Americay Mortgage failed to file a required mortgage call report (“MCR”), specifically, its Standard Financial Condition – 2015 MCR that was due on March 30, 2016, in violation of Section 36a-534b(c)(3) of the Connecticut General Statutes and in violation of two prior Consent Orders that Americay Mortgage has entered into with the Commissioner dated August 16, 2012 and March 10, 2016;
WHEREAS, the August 16, 2012 and March 10, 2016 Consent Orders provided that Americay Mortgage shall timely and accurately file all required reports on NMLS in connection with its current and any future license issued to Americay Mortgage;
WHEREAS, the March 10, 2016 Consent Order further provided that “[i]t is expressly understood and agreed that the subsequent failure by Americay Mortgage to timely file any required MCR within the balance of the 2015 licensing period, or any required MCR in any of the next three (3) licensing periods during which time Americay Mortgage is licensed, shall, in addition to any other remedy available to the Commissioner, form a basis for the Commissioner to revoke or refuse to renew the license of Americay Mortgage in Connecticut”;
WHEREAS, the Commissioner believes that such allegations would support initiation of enforcement proceedings against Americay Mortgage, including proceedings to revoke or refuse to renew Americay Mortgage’s mortgage broker license in Connecticut pursuant to Sections 36a-494(a)(1) and 36a-494(a)(1)(C) of the 2016 Supplement to the General Statutes and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, issue a cease and desist order pursuant to Section 36a-494(b)(1) of the 2016 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes, and impose a civil penalty of up to one hundred thousand dollars ($100,000) per violation pursuant to Section 36a-494(b)(1) of the 2016 Supplement to the General Statutes and Section 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, Americay Mortgage believed it had filed required annual financial information because it uploaded a financial statement on NMLS before March 30, 2016, but admits that it did not file the required Standard Financial Condition – 2015 MCR by March 30, 2016;
WHEREAS, Americay Mortgage has filed its missing Standard Financial Condition – 2015 MCR;
WHEREAS, on May 31, 2016, Americay Mortgage filed a letter with the Division outlining how Americay Mortgage shall ensure the accurate and timely filing of any and all future MCRs (“Compliance Plan”), which Compliance Plan is expressly incorporated herein by reference;
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 Americay Mortgage acknowledge the possible consequences of formal administrative proceedings, and Americay Mortgage voluntarily agrees to consent to the entry of the sanctions imposed below solely for the purpose of obviating the need for formal administrative proceedings concerning the allegations set forth herein;
WHEREAS, the Commissioner and Americay Mortgage now desire to resolve the matters set forth herein;
WHEREAS, Americay Mortgage acknowledges that this Consent Order is a public record and is a reportable event for purposes of the regulatory disclosure questions on NMLS, as applicable;
AND WHEREAS, Americay Mortgage, through its execution of this Consent Order, voluntarily agrees to waive its procedural rights, including a right to a notice and an opportunity for a hearing as it pertains to the allegations 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, Americay Mortgage, through its execution of this Consent Order, consents to the Commissioner’s entry of a Consent Order imposing the following sanctions:
|1.||Americay Mortgage shall adhere to its Compliance Plan and it shall file timely, accurate and complete MCRs;|
|2.||In the event that Americay Mortgage fails to file any required MCR on the date that it is due as evidenced by the automated posting of a deficiency to Americay Mortgage’s NMLS account in connection with any license it holds with the Department between the date of execution of this Consent Order by the Commissioner until December 31, 2019, Americay Mortgage shall surrender its license on NMLS within thirty (30) calendar days from the date the report was due, unless Americay Mortgage obtains written permission from the Commissioner to extend such surrender date.|
|3.||In the event that Americay Mortgage fails to surrender its license in accordance with paragraph 2 above, the license of Americay Mortgage shall be SUMMARILY REVOKED without any further notice to Americay Mortgage of any kind. Americay Mortgage herein voluntarily waives any and all procedural rights as it pertains to the revocation of its mortgage broker license pursuant to this Consent Order, including any right to: a further opportunity to show compliance with all lawful requirements for the retention of its mortgage broker license; a notice and an opportunity for a hearing; and a right to seek judicial review or otherwise challenge or contest the validity of such revocation in any judicial forum.|
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 Americay Mortgage based upon the allegations set forth herein; provided that issuance of this Consent Order is without prejudice to the right of the Commissioner to take enforcement action against Americay Mortgage 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 Americay Mortgage and reflected herein is subsequently discovered to be untrue;|
|3.||So long as this Consent Order is promptly disclosed by Americay Mortgage on NMLS, and so long as the license of Americay Mortgage has not been surrendered or summarily revoked pursuant to this Consent Order, nothing in the issuance of this Consent Order shall adversely affect the ability of Americay Mortgage 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; and|
This Consent Order shall become final when issued.
Issued at Hartford, Connecticut
this 9th day of September 2016. ______/s/__________
Jorge L. Perez
I, Christopher Gilnack, state on behalf of Americay Mortgage Corporation, 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 Americay Mortgage Corporation; that Americay Mortgage Corporation agrees freely and without threat or coercion of any kind to comply with the sanctions entered and terms and conditions ordered herein; and that Americay Mortgage Corporation voluntarily agrees to enter into this Consent Order, expressly waiving the procedural rights set forth herein as to the matters described herein.
Name: Christopher Gilnack
Americay Mortgage Corporation
State of: Connecticut
County of: Hartford
On this the 31st day of August 2016, before me, Christopher Gilnak, the undersigned officer, personally appeared Christopher Gilnack who acknowledged himself to be the President of Americay Mortgage Corporation, a corporation, and that he as such President, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself as President.
In witness whereof I hereunto set my hand.
Date Commission Expires: April 30, 2020