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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, NACA is a Massachusetts non-profit corporation that was licensed as a mortgage broker in Connecticut from March 21, 2005 through December 31, 2010, under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking, conducted an examination pursuant to Sections 36a-17 and 36a-498f of the Connecticut General Statutes into the activities of NACA 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, NACA inadvertently failed to apply for renewal of its license for the 2011 licensing period. Such license expired on December 31, 2010;
WHEREAS, on January 4, 2011, NACA filed a Form MU1, Uniform Mortgage Lender/Mortgage Broker Form, on the Nationwide Mortgage Licensing System and Registry (“NMLS”) seeking to obtain a mortgage broker license in Connecticut, which application is currently pending to relicense the unlicensed location;
WHEREAS, as a result of such examination, the Commissioner alleges that, during the period of April through September 2011, NACA acted as a mortgage broker from one (1) location without obtaining the required license for such location, in violation of Section 36a-486(a) of the Connecticut General Statutes;
WHEREAS, the Commissioner believes that such allegation would support initiation of enforcement proceedings against NACA, including proceedings to issue a cease and desist order against NACA pursuant to Sections 36a-494(b) and 36a-52(a) of the Connecticut General Statutes, and impose a civil penalty on NACA pursuant to Sections 36a-494(b) 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(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, both the Commissioner and NACA acknowledge the possible consequences of formal administrative proceedings, and NACA voluntarily agrees to resolve this matter without admitting or denying any allegation contained herein and solely for the purpose of obviating the need for further formal administrative proceedings concerning the allegation contained herein;
WHEREAS, NACA acknowledges that this Consent Order is a public record;
WHEREAS, NACA herein represents to the Commissioner that upon approval of its January 4, 2011 application, the unlicensed location will become licensed as a main office or branch office of NACA under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
WHEREAS, NACA herein represents to the Commissioner that it has reviewed and updated its internal policies, procedures and controls for assessing whether a location from which it operates is engaged in mortgage-related activity that requires NACA to obtain a main office or branch office license from the Commissioner under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
AND WHEREAS, NACA, through its execution of this Consent Order, voluntarily agrees to waive its procedural rights, including a right to notice and an opportunity for hearing as it pertains to the allegation set forth herein, and voluntarily waives its rights to seek judicial review or otherwise challenge or contest the validity of this Consent Order.
CONSENT TO ENTRY OF SANCTION
WHEREAS, NACA, through its 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 NACA, NACA 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 Ten Thousand Dollars ($10,000) 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 NACA based upon the allegation contained herein; provided that issuance of this Consent Order is without prejudice to the right of the Commissioner to take enforcement action against NACA 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 NACA and reflected herein is subsequently discovered to be untrue;|
So long as this Consent Order is promptly disclosed by NACA on NMLS, nothing in the issuance of this Consent Order shall adversely affect the ability of NACA 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 requirements for such license are satisfied; and
This Consent Order shall become final when issued.
Issued at Hartford, Connecticut
this 19th day of October 2011. ________/s/_________
Howard F. Pitkin
I, Bruce Marks, state on behalf of Neighborhood Assistance Corporation of America, 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 Neighborhood Assistance Corporation of America, that Neighborhood Assistance Corporation of America agrees freely and without threat or coercion of any kind to comply with the sanction entered and the terms and conditions ordered herein; and that Neighborhood Assistance Corporation of America voluntarily agrees to enter into this Consent Order, expressly waiving the procedural rights set forth herein as the matters described herein.
Name: Bruce Marks
Corporation of America
State of: CT
County of: Hartford
On this the 19 day of October 2011, before me, Amy B. Grillo, the undersigned officer, personally appeared Bruce Marks who acknowledged himself to be the CEO of Neighborhood Assistance Corporation of America, a non-profit corporation, and that he as such CEO, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the non-profit corporation by himself as CEO.
In witness whereof I hereunto set my hand.
Date Commission Expires: Feb. 28, 2013