Bulletin # 2619 - Week Ending May 2, 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

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 April 22, 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:  Javier Gutierrez d/b/a Home Affordable Direct Inc (“Respondent”).  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.  As part of the Order to Make Restitution, Respondent was ordered to repay fees to an identified Connecticut resident in the amount of $2,500 plus interest, and to repay any other Connecticut resident 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.  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.

Order to Cease and Desist and Order Imposing Civil Penalty

On April 22, 2014, the Commissioner issued an Order to Cease and Desist and Order Imposing Civil Penalty (“Order”) against Arrowhead Investment, Inc. (“Arrowhead”) Salt Lake City, Utah.  The Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, on January 16, 2014, 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 against Arrowhead, which was amended on February 27, 2104.  The basis of the Order was 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 that Respondent charged, contracted for and 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 without obtaining the required license, in violation of Section 36a-573(a) of the Connecticut General Statutes.  The Order ordered that Arrowhead cease and desist from violating Sections 36a-555 and 36a-573 of the Connecticut General Statutes and imposed a civil penalty in the amount of $100,000.  In addition, an Order to Make Restitution previously issued against the Arrowhead remains in effect and became permanent on March 20, 2014.

On April 22, 2014, the Commissioner issued an Order to Cease and Desist and Order Imposing Civil Penalty (“Order”) against Law Offices of Timothy McCabe, P.A.  The Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, on February 28, 2014, In the Matter of:  Law Offices of Timothy McCabe, P.A. and Consumer Assistance Project, Corp f/k/a Back Office Law Project, Corp., the Commissioner issued in 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.  The basis of the Order was that McCabe engaged in debt negotiation in this state without obtaining the required license, in violation of Section 36a-671(b) of the Connecticut General Statutes.  The Order ordered that McCabe cease and desist from violating Section 36a-671(b) of the Connecticut General Statutes and imposed a civil penalty in the amount of $100,000.  In addition, an Order of Restitution previously issued against McCabe on February 28, 2014, remains in effect and became permanent on March 25, 2014.

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 April 22, 2014, 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 (“Notice”) in the Matter of:  Great Western Financial Services, Inc. (NMLS # 82156) (“Respondent”), Plano, Texas.  The Notice was the result of an investigation by the Consumer Credit Division.  The Notice alleges that Respondent failed to timely file certain quarterly information and failed to file certain annual information required on the Nationwide Mortgage Licensing System and Registry, in violation of Section 36a-534b(c)(3) of the Connecticut General Statutes and in violation of an order of the Commissioner.  Respondent was afforded an opportunity to request a hearing on the allegations set forth in the Notice.

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

On April 22, 2014, 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 (“Notice”) in the Matter of:  1st American Home Loans, LLC (NMLS # 2960) (“Respondent”), Dayville, Connecticut.  The Notice was the result of an investigation by the Consumer Credit Division.  The Notice alleges that Respondent failed to file certain annual information required on the Nationwide Mortgage Licensing System and Registry, in violation of Section 36a-534b(c)(3) of the Connecticut General Statutes and in violation of an order of the Commissioner.  Respondent was afforded an opportunity to request a hearing on the allegations set forth in the Notice.

On April 22, 2014, 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 (“Notice”) in the Matter of: Gen2 Mortgage Services LLC d/b/a Generation2 Mortgage Services (NMLS # 142998) (“Respondent”), South Windsor, Connecticut.  The Notice was the result of an investigation by the Consumer Credit Division.  The Notice alleges that Respondent failed to timely file certain annual information required on the Nationwide Mortgage Licensing System and Registry, in violation of Section 36a-534b(c)(3) of the Connecticut General Statutes and in violation of an order of the Commissioner.  Respondent was afforded an opportunity to request a hearing on the allegations set forth in the Notice.

On April 22, 2014, 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 (“Notice”) in the Matter of:  Intercontinental Capital Group, Inc. (NMLS # 60134) (“Respondent”), New York, New York.  The Notice was the result of an investigation by the Consumer Credit Division.  The Notice alleges that Respondent failed to timely file certain annual information required on the Nationwide Mortgage Licensing System and Registry, in violation of Section 36a-534b(c)(3) of the Connecticut General Statutes and in violation of an order of the Commissioner.  Respondent was afforded an opportunity to request a hearing on the allegations set forth in the Notice.

On April 22, 2014, 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 (“Notice”) in the Matter of: KWIK MORTGAGE CORPORATION (NMLS # 138075) (“Respondent”), South Plainfield, New Jersey.  The Notice was the result of an investigation by the Consumer Credit Division.  The Notice alleges that Respondent failed to timely file certain annual information required on the Nationwide Mortgage Licensing System and Registry, in violation of Section 36a-534b(c)(3) of the Connecticut General Statutes and in violation of an order of the Commissioner.  Respondent was afforded an opportunity to request a hearing on the allegations set forth in the Notice.

On April 22, 2014, 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 (“Notice”) in the Matter of:  New Milford Mortgage Company, LLC (NMLS # 110092) (“Respondent”), New Milford, Connecticut.  The Notice was the result of an investigation by the Consumer Credit Division.  The Notice alleges that Respondent failed to timely file certain annual information required on the Nationwide Mortgage Licensing System and Registry, in violation of Section 36a-534b(c)(3) of the Connecticut General Statutes and in violation of an order of the Commissioner.  Respondent was afforded an opportunity to request a hearing on the allegations set forth in the Notice.

On April 22, 2014, 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 (“Notice”) in the Matter of:  On Deck Mortgage Services LLC. (NMLS # 84623) (“Respondent”), Trumbull, Connecticut.  The Notice was the result of an investigation by the Consumer Credit Division.  The Notice alleges that Respondent failed to file certain annual information required on the Nationwide Mortgage Licensing System and Registry, in violation of Section 36a-534b(c)(3) of the Connecticut General Statutes and in violation of an order of the Commissioner.  Respondent was afforded an opportunity to request a hearing on the allegations set forth in the Notice.

On April 22, 2014, 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 (“Notice”) in the Matter of:  Polaris Funding Group, LLC (NMLS # 2540) (“Respondent”), Newington, Connecticut.  The Notice was the result of an investigation by the Consumer Credit Division.  The Notice alleges that Respondent failed to file certain annual information required on the Nationwide Mortgage Licensing System and Registry, in violation of Section 36a-534b(c)(3) of the Connecticut General Statutes and in violation of an order of the Commissioner.  Respondent was afforded an opportunity to request a hearing on the allegations set forth in the Notice.

Dated:  Tuesday, May 6, 2014