Bulletin # 2584 - Week Ending August 30, 2013

This bulletin constitutes the only official notification you will receive from this office concerning any of the following applications. Any observations you may have are solicited. Any comments should be in writing to Howard F. Pitkin, Banking Commissioner, at the Connecticut Department of Banking, 260 Constitution Plaza, Hartford, CT 06103-1800 or via E-mail. Written comments will be considered only if they are received within ten days from the date of this bulletin.

STATE BANK ACTIVITY

Branch Activity

Section 36a-145 of the Connecticut General Statutes requires certain applications for a branch, or for a limited branch at which loans will be made, be accompanied by a plan detailing how adequate services to meet the banking needs of all community residents will be provided.  Plans are submitted when such applications are filed and are available for public inspection and comment at this Department for a period of 30 days.  Questions concerning branch activity should be directed to the Financial Institutions Division, (860) 240-8180.

Acquisition

On August 28, 2013, pursuant to Section 36a-184 of the Connecticut General Statutes, Donald J. Vaccaro, filed an acquisition statement to acquire more than 25% of the voting securities of Urban Financial Group, Inc., a Delaware Corporation, and indirectly The Community’s Bank, a Connecticut Bank and Trust Company headquartered in Bridgeport, Connecticut.

CONSUMER CREDIT DIVISION ACTIVITY

Consent Orders

On July 23, 2013, the Commissioner entered into a Consent Order with Long Ridge Mortgage, LLC (NMLS # 146932) (“Long Ridge Mortgage”), Stratford, Connecticut.  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, on June 24, 2013, 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.  The Commissioner alleged that Long Ridge Mortgage failed to timely file certain annual information required by mortgage call reports in violation of Section 36a 534b(c)(3) of the Connecticut General Statutes.  As part of the Consent Order, Long Ridge Mortgage paid $2,500 as a civil penalty.

On August 6, 2013, the Commissioner entered into a Consent Order with Silver Fin Capital Group LLC (NMLS # 12147) (“Silver Fin Capital Group”), Great Neck, New York.  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, on June 24, 2013, 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.  The Commissioner alleged that Silver Fin Capital Group failed to file certain annual information required by mortgage call reports in violation of Section 36a 534b(c)(3) of the Connecticut General Statutes.  As part of the Consent Order, Silver Fin Capital Group paid $2,500 as a civil penalty.

On August 13, 2013, the Commissioner entered into a Consent Order with Quantum Mortgage Corporation (NMLS # 59626) (“Quantum Mortgage”), White Plains, New York.  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, on March 22, 2013, 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.  The Commissioner alleged that Quantum Mortgage failed to timely file certain annual and quarterly information required by mortgage call reports in violation of Section 36a-534b(c)(3) of the 2012 Supplement to the General Statutes in effect prior to October 1, 2012, and Section 36a-534b(c)(3) of the Connecticut General Statutes.  As part of the Consent Order, Quantum Mortgage paid $2,500 as a civil penalty.

Order to Cease and Desist and Order Imposing Civil Penalty

On August 6, 2013, the Commissioner issued an Order to Cease and Desist and Order Imposing Civil Penalty (“Order”) In the Matter of:  Independence Law Group, Inc. (“Respondent”), Sunrise, Florida.  The basis of the Order was 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.  Respondent was ordered to cease and desist from violating Section 36a-671(b) of the Connecticut General Statutes and to pay a civil penalty in the amount of $100,000.  In addition, an Order to Make Restitution previously issued against Respondent on June 25, 2013, remains in effect and became permanent on July 18, 2013.

Order Revoking Consumer Collection Agency License, Order to Cease and Desist and Order Imposing Civil Penalty

On August 6, 2013, the Commissioner issued an Order Revoking Consumer Collection Agency License, Order to Cease and Desist and Order Imposing Civil Penalty (“Order”) In the Matter of:  Receivables Management Solutions Incorporated (“Respondent”), W. St. Paul, Minnesota.  The basis of the Order was that Respondent failed to maintain a surety bond that ran concurrently with the period of its license, in violation of Section 36a-802(a) of the Connecticut General Statutes, and failed to fully cooperate with the Commissioner during the course of an examination, in violation of Section 36a-17(d) of the Connecticut General Statutes.  Respondent’s license to act as a consumer collection agency in Connecticut from 260 East Wentworth Avenue, W. St. Paul, Minnesota, was revoked, Respondent was ordered to cease and desist from violating Sections 36a-17(d) and 36a-802(a) of the Connecticut General Statutes and to pay a civil penalty in the amount of $100,000.

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

On August 6, 2013, the Commissioner issued an Order Revoking Consumer Collection Agency License and Order to Cease and Desist (“Order”) In the Matter of:  Titanium Solutions, Inc. (“Respondent”), Fort Mill, South Carolina.  The basis of the Order was that Respondent failed to maintain a surety bond that ran concurrently with the period of its license, in violation of Section 36a-802(a) of the Connecticut General Statutes.  Respondent’s license to act as a consumer collection agency in Connecticut from 3023 HSBC Way, 2nd Floor, Fort Mill, South Carolina, was revoked, and Respondent was ordered 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 and Notice of Intent to Impose Civil Penalty

On August 13, 2013, the Commissioner issued a Temporary Order to Cease and Desist, Order to Make Restitution (“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 (collectively “Notice”) in the Matter of:  Mortgage Counseling Center a/k/a Mortgage Counseling Center of America, Inc. (“Mortgage Counseling Center”), Lake Forest, California, and Edward Albert Bauman, Jr. (“Bauman”) (collectively, Respondents”).  The Notice was the result of an investigation by the Consumer Credit Division.  The Notice alleges that each 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.  As part of the Order to Make Restitution, Respondents were ordered to repay fees to an identified Connecticut resident plus interest, and to repay any other Connecticut residents who entered into an agreement for debt negotiation services with Respondents 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.  Respondents were afforded an opportunity to request a hearing with regard to the allegations set forth in the Notice.

On August 13, 2013, the Commissioner issued a Temporary Order to Cease and Desist, Order to Make Restitution (“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 (collectively, “Notice”) in the Matter of:  Mortgage Help for America Limited Liability Company a/k/a Mortgage Help for America (“Respondent”), Tabernacle, New Jersey.  The Notice was the result of an investigation by the Consumer Credit Division.  The Notice alleges that the 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.  As part of the Order to Make Restitution, Respondent was ordered to repay fees to identified Connecticut residents plus interest, and to repay 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.

Notice of Intent to Revoke Mortgage Correspondent Lender License, Notice of Intent to Issue Order to Cease and Desist and Notice of Intent to Impose Civil Penalty

On August 13, 2013, the Commissioner issued a Temporary Order to Cease and Desist, Notice of Intent to Revoke Consumer Collection Agency License, 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:  Residential Home Funding Corp. d/b/a Residential Home Mortgage Corp. d/b/a Consumer Equity d/b/a The Mortgage Corner (“Respondent”), White Plains, New York.  The Notice was the result of an investigation by the Consumer Credit Division.  The Notice alleges that Respondent’s failure to timely provide the Commissioner a complete and accurate response to a report of examination and compliance letter renders the Commissioner unable to determine that Respondent demonstrates financial responsibility, character and general fitness such as to command the confidence of the community and to warrant a determination that Respondent will operate honestly, fairly and efficiently within the purposes of Sections 36a-485 to 36a-498f, inclusive, 36a-534a and 36a-534b of the Connecticut General Statutes, which failure would be sufficient grounds for the Commissioner to deny an application for a mortgage lender license, and would be sufficient grounds to revoke Respondent’s license.  Also, Respondent failed to fully cooperate with the Commissioner during the course of an examination, in violation of Section 36a 17(d) of the Connecticut General Statutes.  Respondent was afforded an opportunity to request a hearing with regard to the allegations set forth in the Notice.