Bulletin # 2611 - Week Ending March 7, 2014

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.

CONSUMER CREDIT DIVISION ACTIVITY

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

On February 27, 2014, the Commissioner issued an Amended and Restated Temporary Order to Cease and Desist, Amended and Restated Order to Make Restitution, 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 (“Notice”) in the Matter of:  Arrowhead Investment, Inc. (“Respondent”), Salt Lake City, Utah.  The Notice was the result of an investigation by the Consumer Credit Division.  The Notice alleges that Respondent:  made, offered or assisted Connecticut borrowers to obtain consumer loans without obtaining the required license, in violation of Section 36a-555 of the Connecticut General Statutes; and charged, contracted for, or received interest at a rate greater than 12% on at least one consumer loan to a Connecticut resident in an amount less than $15,000, in violation of Section 36a 573(a) of the Connecticut General Statutes.  Respondent was afforded an opportunity to request a hearing on the Notice.

Consent Order

On February 28, 2014, the Commissioner entered into a Consent Order with SecurityNational Mortgage Company d/b/a Southern Security Mortgage Company (NMLS # 3116) (“SecurityNational”), Salt Lake City, Utah.  The Consent Order was based on an examination by the Consumer Credit Division.  As a result of such examination, the Commissioner alleged that during the period of September 19 through November 30, 2012, SecurityNational accepted applications from one (1) individual as a mortgage loan originator who was not licensed, in violation of Section 36a-496 of the Connecticut General Statutes.  As part of the Consent Order, SecurityNational paid $4,500 as a civil penalty.

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

On February 28, 2014, 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:  Law Offices of Timothy McCabe, P.A. (“McCabe”), Lake Worth and Deerfield Beach, Florida, and Consumer Assistance Project, Corp, f/k/a Back Office Law Project, Corp (“Consumer Assistance Project”), Coral Cables, Florida (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, each Respondent was ordered to repay fees to identified Connecticut residents plus interest, and to repay any other Connecticut resident who entered into an agreement for debt negotiation services with such Respondent on and after October 1, 2009, any fees paid by such Connecticut resident to such Respondent plus interest.  The Commissioner also found that public welfare required the issuance of a Temporary Order to Cease and Desist against Respondents.  Respondents were afforded an opportunity to request a hearing with regard to the allegations set forth in the Notice.