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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, Valerio is an individual who was registered as an originator in Connecticut for a period of time ending in July 2008, but who was not thereafter licensed as a mortgage loan originator in Connecticut;
WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking, investigated the activities of Valerio pursuant to Sections 36a-17(a) and 36a-498f(a) of the Connecticut General Statutes to determine if he 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, on January 19, 2011, the Commissioner, acting pursuant to Sections 36a-494(b), 36a-52(a) and 36a-50(a) of the Connecticut General Statutes, issued a Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (collectively “Notice”) against Valerio and several other respondents, which Notice is incorporated herein by reference;
WHEREAS, the Notice alleges, with regard to Valerio, that on or about December 29, 2008, and on or about April 16, 2009, Valerio acted as an unlicensed mortgage loan originator in connection with a single residential mortgage loan in Connecticut, in violation of Section 36a-486(b) of the then applicable Connecticut General Statutes;
WHEREAS, the Notice alleges, with regard to Valerio, that by not identifying himself as the actual interviewer on the Uniform Residential Loan Applications, as more fully described in paragraphs 19 and 20 of the Notice, Valerio misrepresented, concealed, suppressed, intentionally omitted or otherwise intentionally failed to disclose material particulars of mortgage loan transactions to lenders entitled to such information, in violation of Section 36a-494(b) of the then applicable Connecticut General Statutes;
WHEREAS, the Notice was mailed on January 20, 2011, to Valerio by registered mail, return receipt requested (Registered Mail No. RB028037535US);
WHEREAS, on January 21, 2011, Valerio received the Notice sent by registered mail;
WHEREAS, on February 1, 2011, the Department received an Appearance and Request for Hearing form from Valerio, through counsel, requesting a hearing on the Notice, which hearing is currently scheduled for August 17, 2011;
WHEREAS, Valerio has denied the allegations set forth in the Notice;
WHEREAS, Valerio has fully cooperated with the Commissioner in connection with resolution of the allegations set forth in the Notice as they relate to him;
WHEREAS, Valerio herein represents to the Commissioner that he does not know Respondent Sookrani Sattie Narain, as identified in the Notice (“Narain”), had no involvement with her and was not compensated by Narain or Nations Funding Source in connection with the residential mortgage loan described in the Notice, or any other residential mortgage loans for dwellings in Connecticut;
WHEREAS, Valerio represents to the Commissioner that he did not complete on behalf of Narain or Nations Funding Source, or sign his name or the name of another person on, the Uniform Residential Loan Applications pertaining to the residential mortgage loan set forth in the Notice or any other Uniform Residential Loan Application pertaining to a residential mortgage loan for a dwelling in Connecticut;
WHEREAS, Valerio represents to the Commissioner that he was involved in the taking of borrower information for use in connection with Uniform Residential Loan Applications subsequently made for the residential mortgage loan identified in the Notice, for which he received compensation from a third party for such services;
WHEREAS, as a result of subsequent investigation by the Commissioner, the Commissioner further alleges that Valerio acted as an unlicensed mortgage loan originator in connection with several other residential mortgage loans in Connecticut, in violation of Section 36a-486(b) of the then applicable Connecticut General Statutes;
WHEREAS, such additional allegations would support initiation of further administrative proceedings against Valerio, including proceedings to cease and desist pursuant to Sections 36a-494(b) and 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty of up to one hundred thousand dollars ($100,000) per violation on Valerio pursuant to Sections 36a-494(b) and 36a-50(a) of the Connecticut General Statutes;
WHEREAS, such additional enforcement proceedings would constitute a contested case within the meaning of Section 4-166(2) 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, Valerio herein represents to the Commissioner that he has not taken information relating to borrowers for use in connection with a residential mortgage loan application for dwellings in this state for compensation, and has not otherwise engaged in the business of a mortgage loan originator since February 2010;
WHEREAS, Valerio herein represents to the Commissioner that he will not take information relating to borrowers for use in connection with a residential mortgage loan application for compensation or gain or otherwise engage in the business of a mortgage loan originator with respect to dwellings located in this state in the future without first obtaining and maintaining a license as a mortgage loan originator under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
WHEREAS, both the Commissioner and Valerio acknowledge the possible consequences of formal administrative proceedings, and Valerio voluntarily agrees to consent to the entry of the sanction described below without admitting or denying any violation of law alleged in the Notice and set forth herein and solely for the purpose of obviating the need for further formal administrative proceedings concerning the allegations contained in the Notice and set forth herein;
WHEREAS, Valerio acknowledges that this Consent Order is a public record and, notwithstanding the foregoing paragraph, constitutes a finding by the Commissioner that Valerio has been involved in a violation of a financial services-related regulation or statute that will be required to be disclosed in response to regulatory disclosure questions on the MU2 Form or MU4 Form on the Nationwide Mortgage Licensing System and Registry (“NMLS”), as such forms may be applicable to Valerio in the future;
WHEREAS, Valerio agrees that the Notice may be used in construing the terms of this Consent Order, and agrees to the language in this Consent Order;
AND WHEREAS, Valerio, through his execution of this Consent Order, voluntarily agrees to waive his procedural rights, including a right to a hearing as it pertains to the allegations contained in the Notice and set forth herein, and including a right to notice and an opportunity for hearing as it pertains to the additional allegations set forth herein, and voluntarily waives his right to seek judicial review or otherwise challenge or contest the validity of this Consent Order.
CONSENT TO ENTRY OF SANCTION
WHEREAS, Valerio, through his execution of this Consent Order, consents to the Commissioner’s entry of a Consent Order imposing the following sanction:
No later than the date this Consent Order is executed by Valerio, Valerio shall remit to the Department of Banking by cashier’s check, certified check or money order made payable to “Treasurer, State of Connecticut”, the sum of Two Thousand Dollars ($2,000) as a civil penalty.
NOW THEREFORE, the Commissioner enters the following:
|1.||The Sanction set forth above be and is 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 Valerio 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 Valerio 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 Valerio and reflected herein is subsequently discovered to be untrue;|
|3.||So long as this Consent Order is disclosed by Valerio on NMLS or directly with the Commissioner in connection with any future application for licensure, and so long as the Sanction set forth herein has been fully satisfied and the civil penalty fully paid, nothing in the issuance of this Consent Order shall adversely affect the ability of Valerio to apply for or obtain a mortgage loan originator license or renewal license 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|
This Consent Order shall become final when issued.
Dated at Hartford, Connecticut
this 5th day of August 2011. ________/s/_________
Howard F. Pitkin
I, Michael Valerio, 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 sanction 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.
State of: Connecticut
County of: New Haven
On this the 2nd day of August 2011, before me, Christine A. Tucker, the undersigned officer, personally appeared Michael Valerio, 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.
Date Commission Expires: 11/30/2015