State of Connecticut Department of Banking

Bulletin 3262 - August 28, 2026

The Department of Banking News Bulletin

Bulletin # 3262 - Week Ending August 28, 2026

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 directed to Jorge L. Perez, Banking Commissioner. Written comments will be considered only if they are received within ten business days from the date of this bulletin.

 
CONSUMER CREDIT ACTIVITY

Franklin Credit Management Corporation

On August 27, 2026, the Commissioner entered into a Consent Order (“Consent Order”) with Franklin Credit Management Corporation (NMLS # 2102), (“Franklin Credit”), Jersey City, New Jersey. The Consent Order was based on an investigation by the Consumer Credit Division. As a result of such investigation, the Commissioner alleged that between 2015 and the present: (1) Franklin Credit repeatedly failed to provide delinquent borrowers the required written notice in a timely manner in connection with at least 19 mortgage loans, in violation of 12 C.F.R. Section 1024.39(b)(1) of Regulation X, the Real Estate Settlement Procedures Act, and Sections 36a-678 and 36a 719f of the Connecticut General Statutes; (2) Franklin Credit repeatedly failed to provide the required periodic statements in a timely manner in connection with at least 9 mortgage loans, in violation of 12 C.F.R. Section 1026.41(a)(2) of Regulation Z, the Truth in Lending Act, and Sections 36a-678 and 36a-719f of the Connecticut General Statutes; and (3) Franklin Credit failed to mail consumer debtors a written notice of each late fee assessed as a result of a late payment on the mortgage loan within the required time period in connection with at least 6 mortgage loans, in violation of Section 49-6c of the Connecticut General Statutes. As part of the Consent Order, Franklin Credit paid $10,000 as a civil penalty and agreed to waive or refund to identified Connecticut borrowers late fees assessed as a result of late payment on the borrower’s mortgage loan without timely mailing the written notice required by Section 49-6c of the Connecticut General Statutes, totaling $15,882.53.

NewRez LLC

On August 12, 2026, the Commissioner, along with 46 state mortgage regulators (“Participating States”), entered into a Settlement Agreement and Consent Order (“Consent Order”) with NewRez LLC (NMLS # 3013), Fort Washington, Pennsylvania (“NewRez”). The Consent Order was based on a multi-state examination. The Commissioner, together with the Participating States, alleged instances of noncompliance by NewRez with the Real Estate Settlement Procedures Act and its implementing regulation, Regulation X, specifically, 12 C.F.R. Section 1024.37 governing lender placed insurance. As part of the Consent Order, Respondent agreed to implement and maintain enhanced servicing review standards and pay $15.5 million nationwide in administrative costs, penalties and remediation, including a civil penalty of $204,136 to Connecticut.
 

Dated: Tuesday, September 1, 2026

Jorge L. Perez
Banking Commissioner