Bulletin # 2645 - Week Ending October 31, 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, Department of Banking, 260 Constitution Plaza, Hartford, CT 06103-1800.  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.

CONSUMER CREDIT DIVISION ACTIVITY

Consent Order

On October 21, 2014, the Commissioner entered into a Consent Order with Glastonbury Residential Mortgage, LLC. d/b/a Glastonbury Residential Mortgage (NMLS # 886988) (“Glastonbury Residential Mortgage”), Glastonbury, Connecticut.  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, on May 9, 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 against Glastonbury Residential Mortgage.  The Commissioner alleged that Glastonbury Residential Mortgage 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, Glastonbury Residential Mortgage requested surrender of its mortgage correspondent lender license.

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

On October 21, 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:  Classic Mortgage LLC (NMLS # 31149) (“Respondent”), Maywood, 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 quarterly 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 October 21, 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:  Commercial Enterprises LLC d/b/a Cellura Mortgagers (NMLS # 222382) (“Respondent”), Guilford, Connecticut.  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 required on the Nationwide Mortgage Licensing System and Registry, in violation of Section 36a-534b(c)(3) of the Connecticut General Statutes.  Respondent was afforded an opportunity to request a hearing on the allegations set forth in the Notice.

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 October 23, 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:  Home Defense Team P.A. (“Respondent”), Boca Raton, Florida.  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 amended by Public Act 14-7.  As part of the Order to Make Restitution, Respondent was ordered to repay fees to any other Connecticut resident to whom it had not already made repayment and who entered into an agreement for debt negotiation services with Respondent on and after October 1, 2009, 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 allegations set forth in the Notice.

On October 24, 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 (“Notice”) in the Matter of:  Great Plains Lending, LLC (“Great Plains”), Red Rock, Oklahoma, John R. Shotton (“Shotton”) and Clear Creek Lending (“Clear Creek”) (collectively, “Respondents”), Stillwater, Oklahoma.  The Notice was the result of an investigation by the Consumer Credit Division.  The Notice alleges that Great Plains engaged in the business of making loans of money or credit without obtaining the required license, in violation of Section 36a-555(1) of the Connecticut General Statutes; made, offered or assisted Connecticut borrowers in obtaining small loans in Connecticut, in violation of Section 36a-555(2) of the Connecticut General Statutes; and charged, contracted for and received interest at a rate greater than 12% on small loans in Connecticut, in violation of Section 36a-573(a) of the Connecticut General Statutes.  The Notice also alleges that Shotton participated in Great Plains’ violation of Sections 36a-555(1), 36a-555(2) and 36a-573(a) of the Connecticut General Statutes, thereby subjecting him to the provisions of such sections pursuant to Section 36a-573(a) of the Connecticut General Statutes; and that Clear Creek offered or assisted borrowers to obtain small loans in Connecticut, in violation of Section 36a-555(2) of the Connecticut General Statutes.  Respondents have been afforded an opportunity to request a hearing on the Notice.

Dated:  Tuesday, November 4, 2014

Howard F. Pitkin
Banking Commissioner