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, the Commissioner, through the Consumer Credit Division of the Department of Banking (“Department”), conducted an investigation of the activities of Respondent, pursuant to the authority granted by Sections 36a-17 and 36a-498f of the Connecticut General Statutes, to determine if Respondent 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 29, 2017, the Commissioner, acting pursuant to Sections 36a-492(c), 36a-52(b), 36a-494(a)(1), 36a-494(a)(1)(C), 36a-51(a), 36a-51(b), 36a-494(b) and 36a-52(a) of the Connecticut General Statutes, issued a Notice of Automatic Suspension, Temporary Order to Cease and Desist, Notice of Intent to Revoke Mortgage Correspondent Lender Licenses, Notice of Intent to Issue Order to Cease and Desist and Notice of Right to Hearing (collectively “Notice and Order”) against Respondent, which Notice and Order is incorporated herein by reference;

WHEREAS, on September 29, 2017, the Notice and Order was sent by certified mail, return receipt requested, to Respondent (Certified Mail Nos. 70162070000104623078 and 70162070000104623085);

WHEREAS, the Notice and Order provided Respondent with the opportunity for a hearing and stated that if a hearing was not requested within 14 days of its receipt or if Respondent failed to appear at any such hearing, the allegation would be deemed admitted and the Commissioner would issue an order revoking Respondent’s licenses to engage in the business of a mortgage correspondent lender in Connecticut from 300 Garden City Plaza, Suite 170, Garden City, New York (“Main Office”), and from 155 Route 109, West Babylon, New York (“Branch Office”), and issue an order that Respondent cease and desist from violating Section 36a-492 of the Connecticut General Statutes;

WHEREAS, on October 2, 2017, the Notice and Order sent to Respondent by Certified Mail No. 70162070000104623078 was returned to the Department marked “Moved Left No Address – Unable To Forward – Return To Sender”;

WHEREAS, on October 12, 2017, the Notice and Order sent to Respondent by Certified Mail No. 70162070000104623085 was returned to the Department marked “Return To Sender – No Such Number – Unable To Forward”;

WHEREAS, the Notice and Order issued against Respondent was deemed received by it on the earlier of the date of actual receipt or seven days after mailing or sending, pursuant to Sections 36a-51(a) and 36a-52(a) of the Connecticut General Statutes;

WHEREAS, Respondent failed to request a hearing within the prescribed time period and to present evidence, rebuttal evidence and argument on all issues of fact and law to be considered by the Commissioner;

WHEREAS, the Commissioner alleged in the Notice and Order, with respect to the activity described therein, that Respondent’s failure to maintain a surety bond that runs concurrently with the period of its mortgage correspondent lender licenses constitutes sufficient grounds to deny applications for such licenses under Section 36a-489(a)(1)(D) of the Connecticut General Statutes and constitutes a violation of Section 36a-492 of the Connecticut General Statutes, both of which constitute grounds to revoke Respondent’s licenses to engage in the business of mortgage correspondent lending in Connecticut from its Main Office and its Branch Office pursuant to Sections 36a-494(a)(1) and 36a-494(a)(1)(C) and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, and forms a basis to issue an order to cease and desist pursuant to Sections 36a-494(b) and 36a-52(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 . . . revoke . . . 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”;

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 6, inclusive, of Section II of the Notice and Order 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 and Order 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(a)(1) and 36a-494(a)(1)(C) and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, constitutes sufficient grounds to revoke Respondent’s licenses to engage in the business of a mortgage correspondent lender in Connecticut from 300 Garden City Plaza, Suite 170, Garden City, New York, and from 155 Route 109, West Babylon, New York.
3.	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.
4.	The Commissioner finds that the Notice and Order was given in compliance with subsections (a) and (b) of Section 36a-51, and Sections 36a-52(a) and 4-177 of the Connecticut General Statutes.

1.	The licenses of Vanguard Funding LLC to engage in the business of a mortgage correspondent lender in Connecticut from 300 Garden City Plaza, Suite 170, Garden City, New York, and from 155 Route 109, West Babylon, New York, be and are hereby REVOKED;
2.	Vanguard Funding LLC CEASE AND DESIST from violating Section 36a-492 of the Connecticut General Statutes; and
3.	This Order shall become effective when mailed.

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