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IN THE MATTER OF: SIWELL, INC. d/b/a ("Capital Mortgage Services") |
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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-534b, inclusive, of the Connecticut General Statutes, “Mortgage Lenders, Correspondent Lenders, Brokers and Loan Originators”;
WHEREAS, Capital Mortgage Services is a Texas corporation that was licensed in Connecticut as a mortgage lender under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
WHEREAS, the Commissioner, through the Consumer Credit Division (“Division”) of the Department of Banking (“Department”), conducted an investigation pursuant to the authority granted by Section 36a-17 of the Connecticut General Statutes to determine if Capital Mortgage Services, while licensed as a mortgage lender in Connecticut, 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 7, 2017, as a result of the investigation, the Commissioner, acting pursuant to 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 Capital Mortgage Services, which Notice is incorporated herein by reference;
WHEREAS, the Commissioner alleged in the Notice that Capital Mortgage Service’s failure to designate a new qualified individual (“QI”) in accordance with the terms and conditions of a Consent Order issued by the Commissioner against Capital Mortgage Services on October 17, 2016 (“2016 Consent Order”), constituted a violation of an order of the Commissioner, which formed 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;
WHEREAS, on September 7, 2017, the Notice was sent by certified mail, return receipt requested, to Capital Mortgage Services (Certified Mail Nos. 70123050000069976018 and 70123050000069976025);
WHEREAS, on September 11, 2017, Capital Mortgage Services received the Notices sent by certified mail, and no request for a hearing has been received;
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 Capital Mortgage Services now desire to resolve the matters contained in the Notice and set forth herein;
WHEREAS, both the Commissioner and Capital Mortgage Services acknowledge the possible consequences of further formal administrative proceedings, and Capital Mortgage Services voluntarily agrees to consent to the entry of the sanctions imposed below solely for the purpose of obviating the need for further formal administrative proceedings concerning the allegation contained in the Notice and set forth herein;
WHEREAS, Capital Mortgage Services admits that it did not designate a new QI in accordance with the terms and conditions of the 2016 Consent Order;
WHEREAS, on September 29, 2017, Capital Mortgage Services surrendered its mortgage lender license in Connecticut, and obtained from the Commissioner a license to engage in the business of a mortgage servicer in Connecticut, having demonstrated, among other things, that it has in place a QI meeting the statutory requirements for a mortgage servicer license;
WHEREAS, Capital Mortgage Services 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, Capital Mortgage Services 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, Capital Mortgage Services, 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 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 SANCTIONS
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1. |
No later than the date this Consent Order is executed by Capital Mortgage Services, it shall remit to the Department by wire transfer or by cashier’s check, certified check or money order made payable to “Treasurer, State of Connecticut”, the sum of Five Thousand Dollars ($5,000) as a civil penalty; and |
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So long as it holds any license from the Commissioner that requires a QI or a branch manager (“BM”), Capital Mortgage Services continues to be bound by, and shall adhere to the terms and conditions of the 2016 Consent Order, including but not limited to those terms and conditions relating to QIs and BMs for the balance of the term set forth in the 2016 Consent Order (through December 31, 2019). |
CONSENT ORDER
NOW THEREFORE, the Commissioner enters the following:
| 1. | The Sanctions set forth above be and are 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 Capital Mortgage Services based upon the allegation 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 Capital Mortgage Services 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 Capital Mortgage Services and reflected herein is subsequently discovered to be untrue; |
| 3. | Capital Mortgage Services shall not take any action or make or permit to be made any public statement, including in regulatory filings or otherwise, denying, directly or indirectly, any allegation referenced in this Consent Order or create the impression that this Consent Order is without factual basis; |
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Subject to the foregoing and so long as this Consent Order is promptly disclosed by Capital Mortgage Services and its control persons on NMLS, as applicable, nothing in the issuance of this Consent Order shall adversely affect the ability of Capital Mortgage Services to apply for or obtain a license or renewal licenses under Part I of Chapter 668, Sections 36a-485 et seq., and Part VII of Chapter 669, Sections 36a-715 et seq., of the Connecticut General Statutes, provided that all applicable legal requirements for such license or renewal license are satisfied and the terms of this Consent Order are followed; and |
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This Consent Order shall become final when issued.
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Issued at Hartford, Connecticut
this 1st day of December 2017. ______/s/__________
Jorge L. Perez
Banking Commissioner
I, Eric Sharp, state on behalf of Siwell, Inc. d/b/a Capital Mortgage Services of Texas., 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 Siwell, Inc. d/b/a Capital Mortgage Services of Texas.; that Siwell, Inc. d/b/a Capital Mortgage Services of Texas agrees freely and without threat or coercion of any kind to comply with the sanctions entered and terms and conditions ordered herein; and that Siwell, Inc. d/b/a/ Capital Mortgage Services of Texas 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: Eric P. Sharp
Title: Risk Manager
Siwell, Inc. d/b/a Capital Mortgage Services of Texas
State of: Texas
County of: Lubbock
On this the 28th day of November 2017, before me, Jeff Deitiker, the undersigned officer, personally appeared Eric Sharp who acknowledged himself/herself to be the Risk Manager of Siwell, Inc. d/b/a Capital Mortgage Services of Texas., a corporation, and that he/she as such Risk Manager, 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 Risk Manager.
In witness whereof I hereunto set my hand.
__________/s/___________
Notary Public: Jeff Deitiker
Date Commission Expires: 10/21/2019