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 (“Department”), conducted an investigation of the renewal application submitted by Respondent, pursuant to the authority granted by Sections 36a-17 and 36a-498f of the Connecticut General Statutes, 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 November 9, 2016, the Commissioner, acting pursuant to Sections 36a-494(a)(1) and 36a-494(a)(1)(C) of the 2016 Supplement to the General Statutes, subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, Section 36a-494(b) of the 2016 Supplement to the General Statutes and Sections 36a-52(a) and 36a-50(a) of the Connecticut General Statutes, issued a Notice of Intent Not to Renew 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 (“Notice”) against Respondent, which Notice is incorporated herein by reference;

WHEREAS, on November 9, 2016, the Notice was sent by certified mail, return receipt requested, to Respondent (Certified Mail Nos. 70151520000018249399 and 70151520000018249450);

WHEREAS, the Notice provided Respondent with an opportunity for a hearing and stated that if a hearing was not requested by Respondent within 14 days of its receipt or if Respondent failed to appear at the requested hearing, the allegations would be deemed admitted and the Commissioner would issue an order refusing to renew Respondent’s mortgage lender license in Connecticut, which would cause Respondent’s mortgage lender license in Connecticut to be deemed expired, would issue an order that Respondent cease and desist from violating Section 36a-534b(c)(3) of the Connecticut General Statutes and from violating orders of the Commissioner, and may order a civil penalty be imposed upon Respondent for the reasons set forth in the Notice;

WHEREAS, on November 14, 2016, Respondent received the Notice and no request for a hearing was received;

WHEREAS, the Commissioner alleged in the Notice that Respondent’s failure to file the Standard Financial Condition – 2015 Mortgage Call Report when it was due:  (1) constituted a violation of Section 36a-534b(c)(3) of the Connecticut General Statutes, which constitutes sufficient grounds for the Commissioner to refuse to renew Respondent’s mortgage lender license pursuant to Section 36a-494(a)(1)(C) of the 2016 Supplement to the General Statutes and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, and forms the basis to issue an order to cease and desist pursuant to Section 36a-494(b) of the 2016 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty pursuant to Section 36a-494(b) of the 2016 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes; (2) constituted violations of two orders of the Commissioner, which violations form the basis to issue an order to cease and desist pursuant to Section 36a-52(a) of the Connecticut General Statutes and to impose a civil penalty pursuant to Section 36a-50(a) of the Connecticut General Statutes; (3) renders the Commissioner unable to find that Respondent demonstrates the character and general fitness such as 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-498f, inclusive, 36a-534a and 36a-534b of the Connecticut General Statutes, which failure would be sufficient grounds for the Commissioner to deny an application for a mortgage lender license pursuant to Section 36a-489(a)(1)(C) of the Connecticut General Statutes and would be sufficient grounds for the Commissioner to refuse to renew Respondent’s mortgage lender license in Connecticut pursuant to Section 36a-494(a)(1) of the 2016 Supplement to the General Statutes and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, and such failure also causes Respondent to fail to meet minimum standards for renewal under Section 36a-489(a)(2) of the Connecticut General Statutes, which would cause such license to expire; and (4) forms the basis to revive allegations made by the Commissioner in previous consent orders relating to Respondent’s failure to file prior mortgage call reports, which allegations were admitted by Respondent, and forms the basis to issue an order to cease and desist pursuant to Section 36a-494(b) of the 2016 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty pursuant to Section 36a-494(b) of the 2016 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes;

WHEREAS, Section 36a-51(b) of the Connecticut General Statutes provides, in pertinent part, that “[i]f the licensee does not request a hearing within the time specified in the notice . . . , the commissioner shall . . . refuse to renew the license.  No such license shall be . . . revoked except in accordance with the provisions of chapter 54”;

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”;

WHEREAS, Section 36a-50(a)(2) of the Connecticut General Statutes provides, in pertinent part, that “[i]f such person does not request a hearing within the time specified in the notice . . . , the commissioner may, as the facts require, order that a civil penalty not exceeding one hundred thousand dollars per violation be imposed upon such person”;

WHEREAS, Section 36a-50(a)(3) of the Connecticut General Statutes provides, in pertinent part, that “[e]ach action undertaken by the commissioner under this subsection shall be in accordance with 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”.

1.	The Commissioner finds that the matters asserted, as set forth in paragraphs 1 through 18, 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 paragraphs 1 through 4, inclusive, of 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 engaged in acts or conduct which pursuant to Section 36a-494(a) of the 2016 Supplement to the General Statutes and Section 36a-51(a) of the Connecticut General Statutes constitutes grounds to refuse to renew Respondent’s mortgage lender license for its main office located at 41 Grand Avenue, Suite 200, River Edge, New Jersey.
3.	The Commissioner finds that Respondent engaged in acts or conduct, which pursuant to Section 36a-494(a) of the 2016 Supplement to the General Statutes and Sections 36a-52(a) and 36a-50(a) of the Connecticut General Statutes, forms the basis to issue an order to cease and desist against Respondent and to impose a civil penalty upon Respondent.
4.	The Commissioner finds that the Notice was given in compliance with subsections (a) and (b) of Section 36a-51 and Sections 36a-52(a), 36a-50(a), 4-177 and 4-182(c) of the Connecticut General Statutes.

1.	The mortgage lender license in this state of Approved Funding Corp. at 41 Grand Avenue, Suite 200, River Edge, New Jersey shall NOT BE RENEWED;
2.	The mortgage lender license in this state of Approved Funding Corp. at 41 Grand Avenue, Suite 200, River Edge, New Jersey shall be deemed EXPIRED;
3.	Approved Funding Corp. shall CEASE AND DESIST from violating Section 36a-534b(c)(3) of the Connecticut General Statutes and orders of the Commissioner;
4.	A CIVIL PENALTY of Seven Thousand Five Hundred Dollars ($7,500) be imposed upon Approved Funding Corp., to be remitted to the Department of Banking by cashier’s check, certified check or money order, made payable to “Treasurer, State of Connecticut”, no later than thirty (30) days from the date this Order is mailed; and
5.	This Order shall become effective when mailed.