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IN THE MATTER OF: PATRIOT FINANCIAL, INC ("Patriot 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, Patriot Financial is a Washington corporation that requested renewal of its mortgage broker license in Connecticut for the January 1 through December 31, 2016 licensing period on the Nationwide Multistate Licensing System and Registry (“NMLS”) on December 13, 2015;
WHEREAS, the Commissioner, through the Consumer Credit Division (“Division”) of the Department of Banking, pursuant to the authority granted by Sections 36a-17 and 36a-498f of the Connecticut General Statutes, investigated the activities of Patriot Funding 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 September 26, 2016, as a result of the investigation, the Commissioner, acting pursuant to subsections (a) and (b) of Section 36a-494 of the 2016 Supplement to the General Statutes and subsections (a) and (b) of Section 36a-51, and Sections 36a-52(a) and 36a-50(a) of the Connecticut General Statutes, issued a Notice of Intent Not To Renew Mortgage Broker 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 Patriot Financial, which Notice is incorporated herein by reference;
WHEREAS, the Commissioner alleged in the Notice that Patriot Funding’s failure to timely respond to various deficiencies posted by the Division to Patriot Funding’s NMLS account and to provide corrected mortgage call report (“MCR”) information constituted violations of Section 36a-17(d) and 36a-498f(b) of the Connecticut General Statutes. Such violations constituted sufficient grounds to refuse to renew the mortgage broker license of Patriot Financial, formed the basis to issue an order to cease and desist, and rendered the Commissioner unable to find that Patriot Financial demonstrated the requisite character and fitness for renewed licensure;
WHEREAS, on September 27, 2016, the Notice was sent by certified mail, return receipt requested, to Patriot Funding (Certified Mail Nos. 70123050000069998454 and 70123050000069998379);
WHEREAS, on October 3, 2016, Patriot Funding received the Notice sent by Certified Mail No. 70123050000069998454, and on October 4, 2016, Patriot Funding received the Notice sent by Certified Mail No. 70123050000069998379);
WHEREAS, on October 5, 2016, Patriot Funding requested a hearing;
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 Patriot Funding now desire to resolve the matters alleged in the Notice and set forth herein;
WHEREAS, both the Commissioner and Patriot Funding acknowledge the possible consequences of formal administrative proceedings, and Patriot Funding voluntarily agrees to consent to the entry of the sanction imposed below solely for the purpose of obviating the need for formal administrative proceedings concerning the allegations set forth herein;
WHEREAS, Patriot Funding admits that it did not timely respond to the Division in connection with the Division’s posted deficiencies calling for corrected MCR information;
WHEREAS, Patriot Funding promptly filed the requested information following receipt of the Notice;
WHEREAS, on October 12, 2016, Patriot Financial filed a letter with the Division outlining how Patriot Financial shall ensure that it will timely respond to posted deficiencies and any other requests for information from the Commissioner (“Compliance Plan”), which Compliance Plan is expressly incorporated herein by reference;
WHEREAS, Patriot Funding 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, Patriot Funding 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, Patriot Funding, through its execution of this Consent Order, voluntarily agrees to waive any right to a hearing as it pertains to the allegations contained in the Notice and 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, Patriot Funding, through its execution of this Consent Order, consents to the Commissioner’s entry of a Consent Order imposing the following sanction:
In connection with its current license and any future license that may be issued to Patriot Funding by the Commissioner, Patriot Funding shall adhere to its Compliance Plan and it shall substantively respond to any deficiency posted to the NMLS or to any other form of request for information from the Commissioner or the Division within fifteen (15) days of such posting or receipt, unless a different time period is specified in such deficiency or request, or unless an extension is granted by the Commissioner or the Division in writing. It is expressly understood and agreed that a failure by Patriot Funding to adhere to the foregoing response requirements during the balance of the 2016 licensing period or in any of the next three (3) licensing periods during which time Patriot Funding is licensed, shall, in addition to any other remedy available to the Commissioner, form a basis for the Commissioner to revoke or refuse to renew the license of Patriot Funding in Connecticut;
CONSENT ORDER
NOW THEREFORE, the Commissioner enters the following:
| 1. | The Sanction set forth above be and is hereby entered; |
| 2. | 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 Patriot Funding based upon the allegations set forth herein; provided that issuance of this Consent Order is without prejudice to the right of the Commissioner to take enforcement action against Patriot Funding 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 Patriot Funding and reflected herein is subsequently discovered to be untrue; |
| 3. | So long as this Consent Order is promptly disclosed by Patriot Funding on NMLS, nothing in the issuance of this Consent Order shall adversely affect the ability of Patriot Funding 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; and |
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This Consent Order shall become final when issued.
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Issued at Hartford, Connecticut
this 12th day of December 2016. _______/s/_________
Jorge L. Perez
Banking Commissioner
I, Matt Hess, state on behalf of Patriot Financial, Inc, 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 Patriot Financial, Inc; that Patriot Financial, Inc, agrees freely and without threat or coercion of any kind to comply with the sanction entered and terms and conditions ordered herein; and that Patriot Financial, Inc, 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: Matt Hess
Title: President
Patriot Financial, Inc
State of: NC
County of: Wake
On this the 6th day of Dec. 2016, before me, Lynn M. Heinsohn, the undersigned officer, personally appeared Matt Hess who acknowledged himself to be the President of Patriot Financial, Inc, a corporation, and that he as such President, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself as President.
In witness whereof I hereunto set my hand.
_________/s/_________
Notary Public
Date Commission Expires: 4/7/19