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IN THE MATTER OF: BRADFORD FINANCIAL ("Bradford Financial") |
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CONSENT ORDER |
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, Bradford Financial is a Connecticut corporation that is currently licensed as a mortgage broker under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking, pursuant to the authority granted by Sections 36a-17 and Section 36a-498f of the Connecticut General Statutes, investigated the activities of Bradford Financial 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 June 21, 2016, as a result of the investigation, the Commissioner, acting pursuant to 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 to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (“Notice”) against Bradford Financial, which Notice is incorporated herein by reference;
WHEREAS, the Commissioner alleged in the Notice that Bradford Financial failed to file its Standard Financial Condition – 2015 mortgage call report that was due on March 30, 2016, in violation of Section 36a-534b(c)(3) of the Connecticut General Statutes, which violation 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, on June 21, 2016, the Notice was sent by certified mail, return receipt requested, to Bradford Financial (Certified Mail Nos. 70123050000069999864 and 70123050000069999871);
WHEREAS, on June 23, 2016, Bradford Financial received the Notice and on July 7, 2016, requested a hearing;
WHEREAS, as a result of further investigation, the Commissioner further alleges that Bradford Financial failed to file its MCR – Standard – RMLA 2016 (Q2) on the date that it was due, in violation of Section 36a-534b(c)(3) of the Connecticut General Statutes, which violation 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 4-177(c) of the Connecticut General Statutes and Section 36a-1-55(a) of the Regulations of Connecticut State Agencies provide that a contested case may be resolved by consent order, unless precluded by law;
WHEREAS, the Commissioner and Bradford Financial now desire to resolve the matters alleged in the Notice and set forth herein;
WHEREAS, Bradford Financial herein represents to the Commissioner that it has reviewed and updated its internal policies, procedures and controls for timely and accurately filing all required reports with the Commissioner, including but not limited to mortgage call reports required to be submitted to the Commissioner through the Nationwide Multistate Licensing System and Registry (“NMLS”);
WHEREAS, Bradford Financial acknowledges that this Consent Order is a public record and is a reportable event for purposes of the regulatory disclosure questions on NMLS, as applicable;
WHEREAS, Bradford Financial voluntarily agrees to consent to the entry of the sanction imposed below, solely for the purpose of obviating the need for further formal administrative proceedings concerning the allegations contained in the Notice and set forth herein;
WHEREAS, Bradford Financial agrees that the Notice may be used in construing the terms of this Consent Order and agrees to the language of this Consent Order;
AND WHEREAS, Bradford Financial, through its execution of this Consent Order, voluntarily agrees to waive any applicable procedural rights, including a right to a hearing as it pertains to the allegation contained in the Notice and a right to a notice and an opportunity for a hearing as it pertains to the additional allegation set forth herein, and voluntarily waives its right to seek judicial review or otherwise challenge or contest the validity of this Consent Order.
CONSENT TO ENTRY OF SANCTION
WHEREAS, Bradford Financial, through its execution of this Consent Order, consents to the Commissioner’s entry of a Consent Order imposing the following sanction:
No later than the date this Consent Order is executed by Bradford Mortgage, it shall remit to the Department of Banking by wire transfer or by cashier’s check, certified check or money order made payable to “Treasurer, State of Connecticut”, the sum of Two Thousand Five Hundred Dollars ($2,500) as a civil penalty.
CONSENT ORDER
NOW THEREFORE, the Commissioner enters the following:
| 1. | The Sanction set forth above be and is hereby entered; |
| 2. | No later than the date this Consent Order is executed by Bradford Financial, it shall have satisfactorily filed on NMLS all mortgage call reports required to date. In the future, Bradford Financial shall timely and accurately file all required reports in connection with its current and any future license issued to Bradford Financial; |
| 3. | Upon issuance of this Consent Order by the Commissioner, this matter will be resolved and the Commissioner will not take any future enforcement action against Bradford Financial based upon the allegations set forth in the Notice and contained herein; provided that issuance of this Consent Order is without prejudice to the right of the Commissioner to take enforcement action against Bradford Financial based upon a violation of this Consent Order or the matters underlying its entry, if the Commissioner determines that compliance with the terms herein is not being observed or if any representation made by Bradford Financial and reflected herein is subsequently discovered to be untrue; |
| 4. | Subject to the foregoing, and so long as this Consent Order is promptly disclosed by Bradford Financial and its control persons on NMLS, as applicable, nothing in the issuance of this Consent Order shall adversely affect the ability of Bradford Financial to apply for or obtain licenses or renewal licenses under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes, provided all applicable legal requirements for such license are satisfied; and |
| 5. | This Consent Order shall become final when issued. |
Issued at Hartford, Connecticut
this 7th day of November 2016. ______/s/__________
Jorge L. Perez
Banking Commissioner
I, Glenn B. Johnson, state on behalf of Bradford Financial, Incorporated that I have read the foregoing Consent Order; that I know and fully understand its contents; that I am authorized to execute this Consent Order on behalf of Bradford Financial, Incorporated; that Bradford Financial, Incorporated agrees freely and without threat or coercion of any kind to comply with the sanction entered and terms and conditions ordered herein; and that Bradford Financial, Incorporated voluntarily agrees to enter into this Consent Order, expressly waiving the procedural rights set forth herein as to the matters described herein.
By: ________/s/___________
Name: Glenn B. Johnson
Title: Owner/Partner
Bradford Financial, Incorporated
State of: Connecticut
County of: New London
On this the 12th day of September 2016, before me, Sarah Saunders, the undersigned officer, personally appeared Glenn B. Johnson who acknowledged himself/herself to be the Owner/Partner of Bradford Financial, Incorporated, a corporation, and that he/she as such Owner/Partner, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself/herself as Glenn Johnson.
In witness whereof I hereunto set my hand.
__________/s/___________
Commissioner of the Superior Court