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, Bridgepoint Mortgage is a Pennsylvania limited liability company that was licensed as a mortgage broker under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes until it elected not to renew its license for the 2017 licensing period with the Commissioner through the Nationwide Multistate Licensing System and Registry (“NMLS”);

WHEREAS, Doug Huhn is the owner and control person of Bridgepoint Mortgage;

WHEREAS, Doug Huhn was licensed as a mortgage loan originator under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes until he elected not to renew his license for the 2017 licensing period with the Commissioner through NMLS;

WHEREAS, on December 22, 2016, Sabrina Huhn applied for licensure as a mortgage loan originator under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes by submitting an application to the Commissioner through NMLS (“Application”);

WHEREAS, the Application is currently pending;

WHEREAS, Sabrina Huhn had the apparent or actual authority to act on Bridgepoint Mortgage’s behalf by, among other things, negotiating the terms of a previous consent order between the Commissioner and Bridgepoint Mortgage, executing a previous consent order as the “Operations Manager” of Bridgepoint Mortgage in which she represented that she was “authorized to execute this Consent Order on behalf of Bridgepoint Mortgage LLC”, and appearing before the Consumer Credit Division (“Division”) of the Department of Banking exit interviews concerning the Division’s 2016 Examination (as defined below);

WHEREAS, between April 5, 2016 and September 15, 2016, the Commissioner, through the Division, conducted a routine examination of Bridgepoint Mortgage pursuant to the authority granted by Sections 36a-17(a) and 36a-498f of the Connecticut General Statutes, into the activities of Bridgepoint Mortgage 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 (“2016 Examination”);

WHEREAS, as a result of the Division’s 2016 Examination, the Commissioner alleges that Bridgepoint Mortgage altered loan file documents, thereby:  (1) directly or indirectly employing a scheme, device or artifice to defraud or mislead borrowers or lenders or to defraud any person, in violation of Section 36a-498e(1) of the Connecticut General Statutes; (2) engaging in an unfair or deceptive practice, in violation of Section 36a-498e(2) of the Connecticut General Statutes; (3) employing a device, scheme or artifice to defraud, in violation of Section 36a-53b(1) of the Connecticut General Statutes; or (4) engaging in an act, practice, or course of business which operates or would operate as a fraud or deceit upon any person, in violation of Section 36a-53b(3) of the Connecticut General Statutes;

WHEREAS, as a result of the 2016 Examination, the Commissioner alleges that Bridgepoint Mortgage engaged the services of at least one (1) mortgage loan originator who was not licensed by the Commissioner, in violation of Section 36a-486(b)(1) of the Connecticut General Statutes;

WHEREAS, the Commissioner alleges that Bridgepoint Mortgage assisted or aided and abetted at least one (1) person in the conduct of business as a mortgage loan originator without a valid license, in violation of Section 36a-498e(6) of the Connecticut General Statutes;

WHEREAS, the Commissioner alleges that Bridgepoint Mortgage failed to maintain adequate records of each residential mortgage loan transaction, in violation of Section 36a-493(a) of the Connecticut General Statutes;

WHEREAS, the Commissioner alleges that Bridgepoint Mortgage failed to provide statutorily-sufficient refundability of advance fee agreements to consumers, in violation of Section 36a-498 of the Connecticut General Statutes;

WHEREAS, the Commissioner alleges that Bridgepoint Mortgage failed to file with NMLS a change of address of its main office at least thirty (30) calendar days prior to such change, and provide directly to the Commissioner, a bond rider or endorsement, or addendum, as applicable, to the surety bond on file with the Commissioner that reflects the new address of the main office, in violation of Section 36a-490(b) of the Connecticut General Statutes;

WHEREAS, the Commissioner alleges that Bridgepoint Mortgage failed to produce loan files during an examination, in violation of Section 36a-498f(f) of the Connecticut General Statutes;

WHEREAS, the Commissioner alleges that Doug Huhn, as an owner, control person, qualified individual and as a mortgage loan originator at Bridgepoint Mortgage, failed to produce loan files during the 2016 Examination, in violation of Section 36a-498f(f) of the Connecticut General Statutes;

WHEREAS, the Commissioner alleges that Bridgepoint Mortgage, through Doug Huhn, improperly altered loan file documents, thereby directly or indirectly misleading borrowers or lenders and engaging in an unfair or deceptive practice, in violation of Sections 36a-498e(1) and 36a-498e(2), respectively, of the Connecticut General Statutes;

WHEREAS, the Commissioner maintains that the foregoing allegations, if any were found to be true, would render the Commissioner unable to continue to find that Bridgepoint Mortgage or Doug Huhn demonstrates the character and general fitness such as to command the confidence of the community and to warrant a determination that it 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;

WHEREAS, such allegations would support initiation of enforcement proceedings against Bridgepoint Mortgage and Doug Huhn including, without limitation, proceedings to issue:  (1) a temporary order to cease and desist, pursuant to Section 36a-52(b) of the Connecticut General Statutes; (2) a notice of intent to revoke or refuse to renew mortgage lender license, pursuant to Sections 36a-494(a)(1), 36a-494(a)(1)(B) and 36a-494(a)(1)(C), and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes; (3) a notice of intent to issue order to cease and desist, pursuant to subdivisions (1), (2) and (3) of Section 36a-494(b) and Section 36a-52(a) of the Connecticut General Statutes; and (4) a notice of intent to impose civil penalty of up to one hundred thousand dollars ($100,000) per violation, pursuant to subdivisions (1), (2) and (3) of Section 36a-494(b) and Section 36a-50(a) of the Connecticut General Statutes;

WHEREAS, Bridgepoint Mortgage, although licensed as a mortgage broker until December 31, 2016, represents that it ceased acting as a mortgage broker in Connecticut in or about March 2016;

WHEREAS, though neither Douglas Huhn nor Bridgepoint Mortgage are currently licensed by the Commissioner as either a mortgage loan originator or mortgage broker, respectively, as a result of each’s respective decision to not seek renewal of those licenses for the 2017 licensing period, Sections 36a-50 and 36a-52 of the Connecticut General Statutes permit the Commissioner to initiate enforcement proceedings to issue:  (1) a temporary order to cease and desist; (2) a notice of intent to issue order to cease and desist; and (3) a notice of intent to impose civil penalty of up to one hundred thousand dollars ($100,000) per violation;

WHEREAS, the Commissioner maintains that the foregoing allegations, if any were found to be true, would render the Commissioner unable to continue to find that Bridgepoint Mortgage or Doug Huhn demonstrate the character and general fitness such as to command the confidence of the community and to warrant a determination that they 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;

WHEREAS, such allegations would support initiation of enforcement proceedings against Bridgepoint Mortgage and Doug Huhn, including, without limitation, proceedings to issue:  (1) a temporary order to cease and desist, pursuant to Section 36a-52(b) of the Connecticut General Statutes; (2) a notice of intent to revoke or refuse to renew mortgage broker and mortgage loan originator license, pursuant to Sections 36a-494(a)(1), 36a-494(a)(1)(B) and 36a-494(a)(1)(C), and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes; (3) a notice of intent to issue order to cease and desist, pursuant to subdivisions (1), (2) and (3) of Section 36a-494(b) and Section 36a-52(a) of the Connecticut General Statutes; and (4) a notice of intent to impose civil penalty of up to one hundred thousand dollars ($100,000) per violation, pursuant to subdivisions (1), (2) and (3) of Section 36a-494(b) and Section 36a-50(a) of the Connecticut General Statutes;

WHEREAS, initiation of such enforcement proceedings would constitute a “contested case” within the meaning of Section 4-166(4) 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, Bridgepoint Mortgage, Doug Huhn, and Sabrina Huhn each acknowledge the possible consequences of formal administrative proceedings, and Bridgepoint Mortgage, Doug Huhn and Sabrina Huhn, each voluntarily agree to consent to the entry of the sanctions imposed below for the purpose of obviating the need for formal administrative proceedings concerning the allegations set forth herein;

WHEREAS, the Commissioner and Bridgepoint Mortgage, Doug Huhn and Sabrina Huhn desire to resolve the matters set forth herein;

WHEREAS, Bridgepoint Mortgage, Doug Huhn and Sabrina Huhn acknowledge 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, Bridgepoint Mortgage, Doug Huhn and Sabrina Huhn have submitted evidence demonstrating economic hardship, such that the Commissioner believes that they are incapable of paying a civil penalty fully commensurate with the allegations levied against them set forth herein;

WHEREAS, Bridgepoint Mortgage, Doug Huhn and Sabrina Huhn specifically assure the Commissioner that the violations alleged herein shall not occur in the future;

AND WHEREAS, Bridgepoint Mortgage, Doug Huhn and Sabrina Huhn, through their respective executions of this Consent Order, voluntarily agree to waive their procedural rights, including a right to a notice and an opportunity for a hearing as it pertains to the allegations set forth herein, and voluntarily waives their right to seek judicial review or otherwise challenge or contest the validity of this Consent Order.

CONSENT TO ENTRY OF SANCTIONS

WHEREAS, Bridgepoint Mortgage, Doug Huhn and Sabrina Huhn, through their executions of this Consent Order, consents to the Commissioner’s entry of a Consent Order imposing the following sanctions:

CONSENT ORDER

NOW THEREFORE, the Commissioner enters the following:

Issued at Hartford, Connecticut
this 5th day of April 2018.                                 ______/s/__________
                                                                    Jorge L. Perez
                                                                    Banking Commissioner

I, Doug Huhn, state on behalf of Bridgepoint Mortgage LLC 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 Bridgepoint Mortgage LLC; that Bridgepoint Mortgage LLC agrees freely and without threat or coercion of any kind to comply with the sanctions entered and terms and conditions ordered herein; and that Bridgepoint Mortgage LLC 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:  Doug Huhn
                                                                   Title:  Owner
                                                                   Bridgepoint Mortgage LLC