The Department of Banking News Bulletin 

STATE BANK ACTIVITY

Branch Acquisition

On March 5, 2013, pursuant to Section 36a-145(n) of the Connecticut General Statutes, the Commissioner issued notice of intent not to disapprove the establishment of a branch through the purchase by Darien Rowayton Bank, Darien, of certain assets and assumption of certain deposit liabilities of the branch of Patriot National Bank located at 3695 Post Road, Southport, Connecticut.

FEDERAL SAVINGS BANK ACTIVITY

Branch Activity

CREDIT UNION ACTIVITY

Merger

On March 5, 2013 pursuant to Section 36a-468a of the Connecticut General Statutes, Dutch Point Credit Union, Inc., Wethersfield, Connecticut, a Connecticut credit union and Capitol Regional Federal Credit Union, Wethersfield, Connecticut, a federally chartered credit union, filed an application for the merger of Capitol Region Federal Credit Union, with and into Dutch Point Credit Union, Inc.

CONSUMER CREDIT DIVISION ACTIVITY

Order to Make Restitution, Notice of Intent to Issue Order to Cease and Desist and Notice of Intent to Impose Civil Penalty

On February 5, 2013, the Commissioner issued an Order to Make Restitution, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (“Notice”) in the Matter of:  National Credit Relief Bureau, Inc. a/k/a NCRB (“Respondent”), Plantation, Florida.  The Notice was the result of an investigation by the Consumer Credit Division.  The Notice alleges that Respondent engaged in debt negotiation in this state without obtaining the required license, in violation of Section 36a-671(b) of the Connecticut General Statutes in effect prior to October 1, 2011.  As part of the Order to Make Restitution, Respondent was ordered to provide repayment of fees to identified Connecticut residents plus interest, and any other Connecticut residents who entered into an agreement for debt negotiation services with Respondent on and after October 1, 2009, any fees paid by such Connecticut resident to Respondent plus interest.  Respondent was afforded an opportunity to request a hearing with regard to the allegation set forth in the Notice.

Order Revoking Consumer Collection Agency License and Order to Cease and Desist

On February 4, 2013, the Commissioner issued an Order Revoking Consumer Collection Agency License and Order to Cease and Desist (“Order”) in the Matter of:  Zenith Acquisition Corp. (“Respondent”), Amherst, New York.  The basis of the Order was that Respondent failed to maintain a surety bond that runs concurrently with the period of its consumer collection agency license in Connecticut from 170 Northpointe Parkway, Suite 300, Amherst, New York, in violation of Section 36a-802(a) of the Connecticut General Statutes.  The Order revokes Respondent’s license to act as a consumer collection agency in Connecticut from such location and orders Respondent to cease and desist from violating Section 36a-802(a) of the Connecticut General Statutes.

On February 4, 2013, the Commissioner issued an Order Revoking Consumer Collection Agency License and Order to Cease and Desist (“Order”) in the Matter of:  Creditors Interchange Receivable Management, LLC (“Respondent”), Tampa, Florida.  The basis of the Order was that Respondent failed to maintain a surety bond that runs concurrently with the period of its consumer collection agency license in Connecticut from 3505 East Frontage Road, Colonial Concourse #3,Suite 130, Tampa, Florida, in violation of Section 36a 802(a) of the Connecticut General Statutes.  The Order revokes Respondent’s license to act as a consumer collection agency in Connecticut from such location and orders Respondent to cease and desist from violating Section 36a-802(a) of the Connecticut General Statutes.

On February 4, 2013, the Commissioner issued an Order Revoking Consumer Collection Agency License and Order to Cease and Desist (“Order”) in the Matter of:  Creditors Interchange Receivable Management, LLC (“Respondent”), Fort Erie, Ontario, Canada.  The basis of the Order was that Respondent failed to maintain a surety bond that runs concurrently with the period of its consumer collection agency license in Connecticut from 224 Garrison Road, Suite 5, Fort Erie, Ontario, Canada, in violation of Section 36a 802(a) of the Connecticut General Statutes.  The Order revokes Respondent’s license to act as a consumer collection agency in Connecticut from such location and orders Respondent to cease and desist from violating Section 36a-802(a) of the Connecticut General Statutes.

On February 4, 2013, the Commissioner issued an Order Revoking Consumer Collection Agency License and Order to Cease and Desist (“Order”) in the Matter of:  Creditors Interchange Receivable Management, LLC (“Respondent”), Cheektowaga, New York.  The basis of the Order was that Respondent failed to maintain a surety bond that runs concurrently with the period of its consumer collection agency license in Connecticut from 80 Holtz Drive, Cheektowaga, New York, in violation of Section 36a-802(a) of the Connecticut General Statutes.  The Order revokes Respondent’s license to act as a consumer collection agency in Connecticut from such location and orders Respondent to cease and desist from violating Section 36a-802(a) of the Connecticut General Statutes.

Temporary Order to Cease and Desist, Order to Make Restitution, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty

On February 5, 2013, the Commissioner issued a Temporary Order to Cease and Desist, Order to Make Restitution, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (“Notice”) in the Matter of:  Claremont Funding LLC (“Respondent”), Baldwin, New York.  The Notice was based on an investigation by the Consumer Credit Division.  The Notice alleges that Respondent engaged in debt negotiation in this state without obtaining the required license, in violation of Section 36a-671(b) of the 2012 Supplement to the General Statutes.  As part of the Order to Make Restitution, Respondent was ordered to provide repayment of $2,450 to an identified Connecticut resident plus interest, and repay to any other Connecticut residents who entered into an agreement for debt negotiation services with Respondent on and after October 1, 2009, any fees paid by such Connecticut residents to Respondent plus interest.  The Commissioner also found that public welfare required the issuance of a Temporary Order to Cease and Desist against Respondent.  Respondent was afforded an opportunity to request a hearing with regard to the allegation set forth in the Notice.

On February 5, 2013, the Commissioner issued a Temporary Order to Cease and Desist, Order to Make Restitution, 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 New Life Financial Solutions, Inc. a/k/a New Life Consultants (“Respondent”), Hallandale Beach, Florida.  The Notice was based on an investigation by the Consumer Credit Division.  The Notice alleges that Respondent engaged in debt negotiation in this state without obtaining the required license, violation of Section 36a-671(b) of the Connecticut General Statutes, in effect prior to October 1, 2011, and offered to engage in debt negotiation in this state without obtaining the required license, in violation of Section 36a-671(b) of the Connecticut General Statutes, in effect prior to October 1, 2011, and Section 36a-671(b) of the 2012 Supplement to the General Statutes.  The Commissioner also found that the public welfare required the issuance of a Temporary Order to Cease and Desist against Respondent.  Respondent was afforded an opportunity to request a hearing with regard to the allegations set forth in the Notice.

Consent Orders

On February 1, 2013, the Commissioner entered into a Consent Order with Fairview Mortgage Corp (NMLS # 5936) (“Fairview”), Massapequa, New York.  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, on November 14, 2012, the Commissioner issued an Amended and Restated Notice of Intent to Issue Order to Cease and Desist, Amended and Restated Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing against Fairview.  The Commissioner alleged that Fairview failed to file certain annual and quarterly information required by standard mortgage call reports, and failed to timely file certain other quarterly information required by standard mortgage call reports, all in violation of Section 36a-534b(c)(3) of the 2012 Supplement to the General Statutes and/or Section 36a-534b(c)(3), as amended by Public Act 12-96.  Among other things, the Consent Order recognized that Fairview’s mortgage broker license had since expired and provided that Fairview shall not be eligible to reapply for licensure as a mortgage lender, mortgage correspondent lender or mortgage broker before June 30, 2013.

On February 5, 2013, the Commissioner entered into a Consent Order with Mortgage One Financial Services Corporation d/b/a Mortgage One (NMLS # 123391) (“Mortgage One”), Brookfield, Connecticut.  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, on December 17, 2012, the Commissioner 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 against Mortgage One.  The Commissioner alleged that Mortgage One failed to timely file certain quarterly information required by standard mortgage call reports, in violation of Section 36a-534b(c)(3) of the 2012 Supplement to the General Statutes and/or Section 36a-534b(c)(3), as amended by Public Act 12-96.  As part of the Consent Order, Mortgage One paid $1,000 as a civil penalty.

On February 6, 2013, the Commissioner entered into a Consent Order with Chrysalis Funding of Connecticut, LLC (“Chrysalis”), Branford, Connecticut.  The Consent Order was based on an examination by the Consumer Credit Division (“Division”).  As a result of such examination, the Commissioner alleged that Chrysalis failed to:  (1) maintain minimum tangible net worth for the year ending December 31, 2011, in violation of Section 36a-488(a) of the 2012 Supplement to the General Statutes, (2) ensure that the Nationwide Mortgage Licensing System and Registry (“NMLS”) unique identifiers of mortgage loan originators were stated on mortgage loan applications, in violation of Section 36a-498d of the Connecticut General Statutes, (3) submit timely and accurate mortgage call reports on NMLS, in violation of Section 36a-534b(c)(3) of the 2012 Supplement to the General Statutes, and (4) respond timely to inquiries by the Division, and otherwise cooperate with the Division, in violation of Section 36a-17(d) of the 2012 Supplement to the General Statutes and Section 36a-498f of the Connecticut General Statutes.  The Consent Order required that Chrysalis pay $2,500 as a civil penalty and cease and desist from failing to:  (1) maintain the required tangible net worth, in violation of Section 36a-488(a) of the 2012 Supplement to the General Statutes, (2) ensure that the NMLS unique identifiers of mortgage loan originators are stated on mortgage loan applications, in violation of Section 36a-498d of  the Connecticut General Statutes, (3) submit timely and accurate mortgage call reports on NMLS, in violation of Section 36a-534b(c)(3) of the 2012 Supplement to the General Statutes, and (4) respond timely to inquiries by the Division, and otherwise cooperate with the Division, in violation of Section 36a 17(d) of the 2012 Supplement to the General Statutes and Section 36a-498f of the Connecticut General Statutes.

Order to Cease and Desist and Order Imposing Civil Penalty

On February 6, 2013, the Commissioner issued an Order to Cease and Desist and Order Imposing Civil Penalty (“Order”) against Geneva-Roth Ventures, Inc. a/k/a Geneva-Roth Capital, Inc. d/b/a Loan Point USA (“Respondent”), Mission, Kansas.  The basis of the Order was that Respondent offered and made loans in Connecticut without obtaining the required license, in violation of Section 36a-555 of the Connecticut General Statutes, and charged Connecticut residents an interest rate of greater than 12% on loans in amounts less than $15,000, in violation of Section 36a-573(a) of the Connecticut General Statutes, in effect prior to October 1, 2011.  Respondent was ordered to cease and desist from violating Section 36a-555 of the Connecticut General Statutes and Section 36a-573(a) of the Connecticut General Statutes, in effect prior to October 1, 2011, and to pay a civil penalty of $100,000.

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

On February 7, 2013, the Commissioner issued an Order to Cease and Desist, Order of Repayment of Fees and Order Imposing Civil Penalty against WJE Enterprises, Inc. d/b/a Federal Modification Group and Distressed Property Experts, LLC d/b/a Federal Modification Group (collectively “Respondents”), both of Westland, Michigan.  The basis of the Order was that Respondents offered to engage in debt negotiation in this state without obtaining the required license, in violation of Section 36a 671(b) of the Connecticut General Statutes, in effect prior to October 1, 2011, and engaged in debt negotiation in this state without obtaining the required license, in violation of Section 36a-671(b) of the Connecticut General Statutes, in effect prior to October 1, 2011.  In addition, Respondents had charged fees for debt negotiation services that were excessive.  Respondents were each ordered to cease and desist from violating Section 36a-671(b) of the Connecticut General Statutes, in effect prior to October 1, 2011, to repay fees to certain Connecticut residents, and to pay a civil penalty of $100,000.

Dated:  Tuesday, March 12, 2013