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IN THE MATTER OF:

RIVERCREST CREDIT SERVICES 

      ("Respondent")

   
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    ORDER TO CEASE AND DESIST      

I.  PRELIMINARY STATEMENT

WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Part I of Chapter 668, Sections 36a-485 to 36a-534c, inclusive, of the Connecticut General Statutes, “Mortgage Lenders, Correspondent Lenders, Brokers and Loan Originators”;

WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking, conducted an investigation of the activities of Respondent, pursuant to the authority granted by Section 36a-17 of the Connecticut General Statutes, as amended by Public Acts 14-7 and 14-89, to determine if it had violated, was violating or was about to violate the provisions of the Connecticut General Statutes within the jurisdiction of the Commissioner;

WHEREAS, on January 2, 2015, the Commissioner, acting pursuant to Sections 36a-494(b) and 36a-52(a) of the Connecticut General Statutes, issued a Notice of Intent to Issue Order to Cease and Desist and Notice of Right to Hearing (collectively “Notice”) against Respondent, which Notice is incorporated herein by reference;

WHEREAS, on January 2, 2015, the Notice was sent by certified mail, return receipt requested, to Respondent (Certified Mail No. 70120470000147903546);

WHEREAS, the Notice provided Respondent with the opportunity for a hearing and stated that if a hearing was not requested within 14 days of its receipt, the Commissioner would issue an order that Respondent cease and desist from violating Section 36a-486(a) of the Connecticut General Statutes;

WHEREAS, on January 7, 2015, the Notice was returned to the Department marked “Return to Sender – Not Deliverable as Addressed – Unable to Forward”;

WHEREAS, Section 36a-52(a) of the Connecticut General Statutes provides, in pertinent part, that “[t]he notice shall be deemed received by the person on the earlier of the date of actual receipt, or seven days after mailing or sending”;

WHEREAS, Respondent failed to request a hearing within the prescribed time period;

WHEREAS, the Commissioner alleged in the Notice, with respect to the activity described therein, that Respondent engaged in the business of making residential mortgage loans without a license by advertising, soliciting or offering to make residential mortgage loans via its website, in violation of Section 36a-486(a) of the Connecticut General Statutes.  Such violation forms the basis to issue an order to cease and desist against Respondent pursuant to Sections 36a-494(b) and 36a-52(a) of the Connecticut General Statutes;

WHEREAS, the Commissioner also alleged in the Notice, with respect to the activity described therein, that Respondent acted as a mortgage broker without a license by advertising via its website that it would negotiate, solicit, place or find residential mortgage loans, either directly or indirectly, in violation of Section 36a-486(a) of the Connecticut General Statutes.  Such violation forms the basis to issue an order to cease and desist against Respondent pursuant to Sections 36a-494(b) and 36a-52(a) of the Connecticut General Statutes;

WHEREAS, Section 36a-52(a) of the Connecticut General Statutes provides, in pertinent part, that “[i]f the person does not request a hearing within the time specified in the notice . . . the commissioner shall issue an order to cease and desist against the person.  No such order shall be issued except in accordance with the provisions of chapter 54”;

AND WHEREAS, Section 36a-1-31(a) of the Regulations of Connecticut State Agencies provides, in pertinent part, that “[w]hen a party fails to request a hearing within the time specified in the notice, the allegations against the party may be deemed admitted.  Without further proceedings or notice to the party, the commissioner shall issue a final decision in accordance with section 4-180 of the Connecticut General Statutes and section 36a-1-52 of the Regulations of Connecticut State Agencies”.


II.  FINDINGS OF FACT AND CONCLUSIONS OF LAW

1.
The Commissioner finds that the matters asserted as set forth in paragraphs 1 through 3, inclusive, of Section II of the Notice shall constitute findings of fact within the meaning of Section 4-180(c) of the Connecticut General Statutes, and that the conclusions as set forth in Section III of the Notice shall constitute conclusions of law within the meaning of Section 4-180(c) of the Connecticut General Statutes and Section 36a-1-52 of the Regulations of Connecticut State Agencies.
2.The Commissioner finds that Respondent has engaged in acts or conduct which, pursuant to Sections 36a-494(b) and 36a-52(a) of the Connecticut General Statutes, forms the basis to issue an order to cease and desist against Respondent.
3.The Commissioner finds that the Notice was given in compliance with Sections 36a-52(a) and 4-177 of the Connecticut General Statutes.


III.  ORDER

Having read the record, I HEREBY ORDER, pursuant to Sections 36a-494(b) and 36a-52(a) of the Connecticut General Statutes, that:

1.Rivercrest Credit Services CEASE AND DESIST from violating Section 36a-486(a) of the Connecticut General Statutes; and
2.This Order shall become effective when mailed.


Issued at Hartford, Connecticut
this 2nd day of February 2015.          _______/s/_________
                                                      Bruce H. Adams
                                                      Acting Banking Commissioner

This Order was sent by certified mail,
return receipt requested, to Respondent
on February 3, 2015.


Rivercrest Credit Services                 Certified Mail No. 70120470000147903829
102 Coe Avenue
Middletown, Connecticut 06457


Administrative Orders and Settlements