WHEREAS, Summit Funding is a New York 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, 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 pursuant to the authority granted by Sections 36a-17 and 36a-498f of the Connecticut General Statutes into the activities of Summit Funding 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, on August 21, 2015, as a result of the investigation, 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 (“Notice”) against Summit Funding, which Notice is incorporated herein by reference;

WHEREAS, the Commissioner alleged in the Notice that Summit Funding failed to timely file a mortgage call report (“MCR”) that was due on May 15, 2015 (“Standard – RMLA – 2015 (Q1)”).  The Commissioner alleged that such failure to file the Standard – RMLA – 2015 (Q1) MCR on the date that it was due constituted:  (1) a violation of Section 36a-534b(c)(3) of Connecticut General Statutes; (2) a violation of an order of the Commissioner contained in a Consent Order dated August 28, 2013 (“2013 Consent Order”); and (3) a basis to revive the allegation previously made by the Commissioner in an action  captioned Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing issued on July 2, 2013 (“2013 Notice”), that Respondent had failed to file a prior MCR, and which allegations were admitted by Respondent in connection with the 2013 Consent Order.  All of the foregoing violations form the basis to issue an order to cease and desist pursuant to Sections 36a-494(b) and/or 36a-52(a) of the Connecticut General Statutes and to impose a civil penalty pursuant to Sections 36a-494(b) and/or 36a-50(a) of the Connecticut General Statutes;

WHEREAS, on August 24, 2015, the Notice was sent by certified mail, return receipt requested, to Summit Funding (Certified Mail No. 70143490000235345305);

WHEREAS, on September 2, 2015, Summit Funding received the Notice and on September 17, 2015, requested a hearing;

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, the Commissioner and Summit Funding now desire to resolve the matters alleged in the Notice and set forth herein;

WHEREAS, although Summit Funding believed it had filed the information required, Summit Funding admits that the Standard – RMLA – 2015 (Q1) MCR described in the Notice and set forth herein was not filed on its due date;

WHEREAS, Summit Funding acknowledges that this Consent Order is a public record and is a reportable event for purposes of the regulatory disclosure questions on the Nationwide Mortgage Licensing System and Registry (“NMLS”), as applicable;

WHEREAS, Summit Funding herein represents to the Commissioner that it has reviewed and updated its internal policies, procedures and controls for timely and accurately filing required reports with the Commissioner through NMLS as required or as otherwise permitted under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;

WHEREAS, Summit Funding voluntarily agrees to consent to the entry of the sanction imposed below, 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, Summit Funding agrees that the Notice may be used in construing the terms of this Consent Order and agrees to the language of this Consent Order;

AND WHEREAS, Summit Funding, 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, voluntarily agrees to consent to the entry of the sanction imposed below without admitting or denying any allegation contained 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 SANCTION 

WHEREAS, Summit Funding, through its execution of this Consent Order, consents to the Commissioner’s entry of a Consent Order imposing the following sanction:

CONSENT ORDER

NOW THEREFORE, the Commissioner enters the following:

Issued at Hartford, Connecticut
this 31st day of December 2015.          ________/s/_________
                                                     Jorge L. Perez
                                                     Banking Commissioner

I, David Steinberg, state on behalf of Summit Funding, Inc. d/b/a Summit Funding Inc. Your Mortgage Professionals, 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 Summit Funding, Inc. d/b/a Summit Funding Inc. Your Mortgage Professionals; that Summit Funding, Inc. d/b/a Summit Funding Inc. Your Mortgage Professionals agrees freely and without threat or coercion of any kind to comply with the sanction entered and terms and conditions ordered herein; and that Summit Funding, Inc. d/b/a Summit Funding Inc. Your Mortgage Professionals, 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: David Steinberg 
                                                   Title:  President
                                                   Summit Funding, Inc. d/b/a Summit Funding Inc.
                                                   YourMortgageProfessionals
                                                   
                                                   

State of:  New York
                               
County of:  Queens

On this the 23 day of December 2015, before me, Abraham Herskowitz, the undersigned officer, personally appeared David Steinberg who acknowledged himself/herself to be the President of Summit Funding, Inc. d/b/a Summit Funding Inc. Your Mortgage Professionals, a corporation, and that he/she 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/herself as President.

In witness whereof I hereunto set my hand.

Administrative Orders and Settlements