CONSUMER CREDIT DIVISION ACTIVITY

Consent Orders

On January 23, 2012, the Commissioner entered into a Consent Order with Wal-Mart Stores East, LP (“Wal-Mart Stores”), Avon, Connecticut.  The Consent Order was based on an investigation by the Consumer Credit Division.  During such investigation, Wal-Mart Stores self-reported that during the period of January 12, 2010 through October 18, 2011, it inadvertently failed to timely submit the quarterly reports to the Commissioner, which are required to be filed by check cashing facility licensees by Section 36a 584(c) of the Connecticut General Statutes.  As part of the Consent Order, Wal-Mart Stores was ordered to pay $3,000 as a civil penalty.

On January 27, 2012, the Commissioner entered into a Consent Order with Settlers Mortgage Company, LLC (NMLS # 6086) (“Settlers Mortgage”), Westport, Connecticut.  The Consent Order was based on an investigation by the Consumer Credit Division (“Division”).  As a result of such investigation, the Commissioner alleged in a Notice of Intent to Suspend Mortgage Broker License and Notice of Right to Hearing issued on December 13, 2011, that Settlers Mortgage failed to pay the cost of an examination conducted by the Division, in violation of Section 36a-65(c)(6) of the Connecticut General Statutes, as amended by Public Act 11-216.  As part of the Consent Order, Settlers Mortgage was ordered to make immediate payment of the cost of the examination.

On January 31, 2012, the Commissioner entered into a Consent Order with Allied Home Mortgage Corporation (NMLS # 2268) (“Allied Home Mortgage”), Houston, Texas.  The Consent Order was based on an investigation by the Consumer Credit Division (“Division”).  As a result of such investigation, the Commissioner alleged in a Temporary Order to Cease and Desist, Notice of Intent to Issue Order to Cease and Desist and Notice of Right to Hearing issued on November 8, 2011, that Allied Home Mortgage’s lack of access to funds due to, among other things, the Mortgagee Review Board of the U.S. Department of Housing and Urban Development’s suspension of Allied Home Mortgage’s ability to originate and underwrite new mortgages insured by the Federal Housing Administration on November 1, 2011, rendered it incapable of performing agreements with borrowers as provided in Section 36a-494(b) of the Connecticut General Statutes.  As part of the Consent Order, Allied Home Mortgage was ordered to request surrender of its mortgage lender license in Connecticut for its main office on NMLS.

Order to Cease and Desist, Order of Repayment of Fees and Order Imposing Civil Penalty

On January 23, 2012, the Commissioner issued an Order to Cease and Desist, Order of Repayment of Fees and Order Imposing Civil Penalty against 1st American Debt Solutions Limited Liability Company a/k/a Legal Settlement Solutions, LLC (“1st American”), Mount Laurel, New Jersey (“Order”) In the Matter of:  1st American Debt Solutions Limited Liability Company a/k/a Legal Settlement Solutions, LLC; The Purewal Law Group, A Professional Corporation d/b/a Legal Network of America (LNOA) and Settlement Corporation of America (collectively,“Respondents”).  The basis of the Order was that 1st American engaged in debt negotiation in this state without obtaining the required license, in violation of 36a-671(b) of the Connecticut General Statutes, and charged fees which did not comply with Section 36a 671b(b) of the Connecticut General Statutes and the schedule of maximum fees established by the Commissioner.  1st American was ordered to cease and desist from violating Section 36a-671(b) of the Connecticut General Statutes, to pay a civil penalty in the amount of $100,000, and to repay fees to identified Connecticut residents.  The other Respondents have requested a hearing on the allegations against them.

Dated:  Tuesday, February 7, 2012