The Department of Banking News Bulletin
Bulletin # 2859 - Week Ending December 7, 2018
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 Jorge L. Perez, Banking Commissioner, Department of Banking, 260 Constitution Plaza, Hartford, CT 06103-1800. Written comments will be considered only if they are received within ten business days from the date of this bulletin.
DEPOSIT INDEX AND INTEREST RATES
Pursuant to Section 36a-26 of the Connecticut General Statutes, the Commissioner has determined the deposit index for the calendar year 2019 to be 0.15%.
The following rates are for the period commencing January 1, 2019 and ending December 31, 2019. The type of account and statutory reference are listed along with the rate.
• Rental security deposits - 47a-21(i) - 0.15%
• Claims for property, funds, or money delivered to the State Treasurer - 3-70a(e) - 0.15%
• Mortgage escrow accounts - 49-2a (section requires that the interest rate be not less than the deposit index, rounded to the nearest one-tenth of one percentage point) - 0.20%
• Public service company, certified telecommunications provider and electric supplier customer security deposits - 16-262j(c) (section requires that the interest rate be not less than the higher of the deposit index, rounded to the nearest one-tenth of one percentage point, or 1.5%) - 1.5%
PLEASE NOTE: The interest rates provided herein are done as a convenience to the public; the Commissioner has no authority to establish interest rates beyond what is provided in statute. Accordingly, parties required to pay interest under these sections must ensure compliance with the applicable statute(s).
STATE BANK ACTIVITY
Branch Activity
CREDIT UNION ACTIVITY
Branch Activity
TO: 541 Westport Avenue, Norwalk, CT 06851
CONSUMER CREDIT DIVISION ACTIVITY
Notice of Intent to Revoke Mortgage Lender License, Notice of Intent to
Issue Order to Cease and Desist and Notice of Intent to Impose Civil Penalty
On December 5, 2018, the Commissioner issued a Notice of Intent to Revoke Mortgage Lender License, 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: 1st Alliance Lending, LLC, NMLS # 2819 (“Respondent”) East Hartford, Connecticut.
The Notice is the result of an examination and investigation (“Examination”) by the Consumer Credit Division (“Division”) in which Respondent failed to produce to the Division any requested e-mail records of its employees after multiple requests for such records. The Examination revealed that Respondent utilized a business model by which employees who were not licensed as mortgage loan originators operated from a “call center” location in East Hartford and did the bulk of mortgage loan origination work by taking mortgage loan applications, including pulling credit of potential borrowers, and offering or negotiating terms of residential mortgage loans. The Examination also found that Respondent failed to implement policies and procedures reasonably designed to achieve compliance with federal and state laws governing its mortgage lending operations.
The Notice alleges that Respondent: (1) failed to make records available and cooperate with the Division’s Examination, in violation of Section 36a-17(e) of the Connecticut General Statutes, as amended; (2) engaged the services of at least five individuals to act as mortgage loan originators who were not licensed, in violation of Section 36a-486(b)(1) of the Connecticut General Statutes and the 2018 Supplement to the General Statutes; (3) assisted or aided and abetted the conduct of at least five individuals acting as mortgage loan originators who were not licensed, in violation of Section 36a-498e(6) of the Connecticut General Statutes and the 2018 Supplement to the General Statutes and Section 36a-498e(a)(6) of the 2018 Supplement to the General Statutes, as amended; (4) accepted applications or referrals of applicants from, or paid fees to, at least five mortgage loan originators who were required to be licensed but were not licensed, in violation of Section 36a-496 of the Connecticut General Statutes; (5) failed to comply with Sections 36a-485 to 36a-498f, inclusive, 36a-498h, 36a-534a and 36a-534b of the Connecticut General Statutes or other state or federal law applicable to its business, in violation of Section 36a-498e(8) of the Connecticut General Statutes and the 2018 Supplement to the General Statutes and Section 36a-498e(a)(8) of the 2018 Supplement to the General Statutes, as amended; (6) failed to establish, enforce and maintain policies and procedures reasonably designed to achieve compliance with Section 36a-498e(a) of the 2018 Supplement to the General Statutes, as amended, in violation of Section 36a-498e(b)(1) of the 2018 Supplement to the General Statutes, as amended; and (7) fails to demonstrate the financial responsibility, character and general fitness 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-498e, inclusive, 36a-498h, 36a-534a and 36a-534b, as required by Section 36a-489(a)(1)(C) of the 2018 Supplement to the General Statutes, as amended. Respondent was afforded an opportunity to request a hearing with regard to the allegations set forth in the Notice.
Dated: Tuesday, December 11, 2018
Banking Commissioner