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IN THE MATTER OF: ANILOM MORTGAGE SAMUEL MOLINA JR. (collectively "Respondents") * * * * * * * * * * * * * * * * * * * |
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TEMPORARY ORDER TO ORDER OF SUMMARY SUSPENSION SECOND AMENDED NOTICE NOTICE OF INTENT TO REVOKE NOTICE OF INTENT TO IMPOSE AND NOTICE OF RIGHT TO HEARING |
I. LEGAL AUTHORITY AND JURISDICTION
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”.
Pursuant to the authority granted by Section 36a-17(a) of the 2012 Supplement to the General Statutes, Section 36a-17(a) of the 2012 Supplement to the General Statutes, as amended by Public Act 12-96, and Section 36a-498f of the Connecticut General Statutes, the Commissioner, through the Consumer Credit Division (“Division”) of the Department of Banking (“Department”), has investigated the activities of Respondents to determine if they have violated, are violating or are about to violate the provisions of the Connecticut General Statutes or if they continue to meet the minimum qualifications for licensure under the provisions of the Connecticut General Statutes within the jurisdiction of the Commissioner.
Section 36a-17(a) of the 2012 Supplement to the General Statutes provides, in pertinent part, that:
The commissioner, in the commissioner’s discretion, may make such public or private investigations or examinations within or outside this state, concerning any person subject to the jurisdiction of the commissioner, as the commissioner deems necessary to carry out the duties of the commissioner. . . .
Section 36a-17(a) of the 2012 Supplement to the General Statutes, as amended by Public Act 12-96, provides, in pertinent part, that:
The commissioner, in the commissioner’s discretion, may, subject to the provisions of section 36a-21 and the Freedom of Information Act, as defined in section 1-200; (1) make such public or private investigations or examinations within or outside this state, concerning any person subject to the jurisdiction of the commissioner, as the commissioner deems necessary to carry out the duties of the commissioner. . . .
Section 36a-498f of the Connecticut General Statutes provides, in pertinent part, that:
(a) In addition to any authority provided under this title, the Banking Commissioner shall have the authority to conduct investigations and examinations as follows:
(1) For purposes of . . . license renewal, license suspension, license conditioning, license revocation or termination, or general or specific inquiry or investigation to determine compliance with sections 36a-485 to 36a-498f, inclusive, 36a-534a and 36a-534b, the commissioner may access, receive and use any books, accounts, records, files, documents, information or evidence, including, but not limited to: (A) Criminal, civil and administrative history information; (B) personal history and experience information including independent credit reports obtained from a consumer reporting agency described in Section 603(p) of the federal Fair Credit Reporting Act, 15 USC 1681a; and (C) any other documents, information or evidence the commissioner deems relevant to the inquiry or investigation regardless of the location, possession, control or custody of such documents, information or evidence. . . .
Subsections (a) and (b) of Section 36a-51 of the 2012 Supplement to the General Statutes provides, in pertinent part, that:
(a) The commissioner may . . . revoke or refuse to renew any license issued by the commissioner under any provision of the general statutes by sending a notice to the licensee by registered or certified mail, return receipt requested, or by any express delivery carrier that provides a dated delivery receipt. The notice shall be deemed received by the licensee on the earlier of the date of actual receipt or seven days after mailing or sending. Any such notice shall include: (1) A statement of the time, place, and nature of the hearing; (2) a statement of the legal authority and jurisdiction under which the hearing is to be held; (3) a reference to the particular sections of the general statutes . . . involved; (4) a short and plain statement of the matters asserted; and (5) a statement indicating that the licensee may file a written request for a hearing on the matters asserted within fourteen days of receipt of the notice. If the commissioner finds that public health, safety or welfare imperatively requires emergency action, and incorporates a finding to that effect in the notice, the commissioner may order summary suspension of a license in accordance with subsection (c) of section 4-182 and require the licensee to take or refrain from taking such action as in the opinion of the commissioner will effectuate the purposes of this section, pending proceedings for . . . revocation or refusal to renew.
(b) If a hearing is requested within the time specified in the notice, the commissioner shall hold a hearing upon the matters asserted in the notice unless the licensee fails to appear at the hearing. After the hearing, the commissioner shall . . . revoke or refuse to renew the license for any reason set forth in the applicable licensing provisions of the general statutes if the commissioner finds sufficient grounds exist for such . . . revocation or refusal to renew. If the licensee does not request a hearing within the time specified in the notice or fails to appear at the hearing, the commissioner shall . . . revoke or refuse to renew . . . the license. No such license shall be suspended or revoked except in accordance with the provisions of chapter 54.
Subsections (a) and (b) of Section 36a-52 of the Connecticut General Statutes provides, in pertinent part, that:
(a) Whenever it appears to the commissioner that any person has violated, is violating or is about to violate any provision of the general statutes within the jurisdiction of the commissioner, . . . the commissioner may send a notice to such person by registered or certified mail, return receipt requested, or by any express delivery carrier that provides a dated delivery receipt. The notice shall be deemed received by the person on the earlier of the date of actual receipt, or seven days after mailing or sending. Any such notice shall include: (1) A statement of the time, place, and nature of the hearing; (2) a statement of the legal authority and jurisdiction under which the hearing is to be held; (3) a reference to the particular sections of the general statutes . . . alleged to have been violated; (4) a short and plain statement of the matters asserted; and (5) a statement indicating that such person may file a written request for a hearing on the matters asserted within fourteen days of receipt of the notice. If a hearing is requested within the time specified in the notice, the commissioner shall hold a hearing upon the matters asserted in the notice, unless the person fails to appear at the hearing. After the hearing, the commissioner shall determine whether an order to cease and desist should be issued against the person named in the notice. If the person does not request a hearing within the time specified in the notice or fails to appear at the hearing, 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.
(b) If the commissioner finds that the public welfare requires immediate action, the commissioner may incorporate a finding to that effect in the notice sent in accordance with subsection (a) of this section and issue a temporary order requiring the person to cease and desist from the activity which constitutes such alleged violation and to take or refrain from taking such action as in the opinion of the commissioner will effectuate the purposes of this section. Such temporary order shall become effective on receipt and, unless set aside or modified by a court, shall remain in effect until the effective date of a permanent order or dismissal of the matters asserted in the notice.
Section 36a-50(a) of the Connecticut General Statutes, as amended by Public Act 12-96, provides, in pertinent part, that:
(1) Whenever the commissioner finds as the result of an investigation that any person has violated any provision of the general statutes within the jurisdiction of the commissioner, . . . the commissioner may send a notice to such person by registered or certified mail, return receipt requested, or by any express delivery carrier that provides a dated delivery receipt. The notice shall be deemed received by the person on the earlier of the date of actual receipt or seven days after mailing or sending. Any such notice shall include: (A) A statement of the time, place, and nature of the hearing; (B) a statement of the legal authority and jurisdiction under which the hearing is to be held; (C) a reference to the particular sections of the general statutes . . . alleged to have been violated; (D) a short and plain statement of the matters asserted; (E) the maximum penalty that may be imposed for such violation; and (F) a statement indicating that such person may file a written request for a hearing on the matters asserted not later than fourteen days after receipt of the notice.
(2) If a hearing is requested within the time specified in the notice, the commissioner shall hold a hearing upon the matters asserted in the notice unless such person fails to appear at the hearing. After the hearing, if the commissioner finds that the person has violated any such provision, . . . the commissioner may, in the commissioner’s discretion and in addition to any other remedy authorized by law, order that a civil penalty not exceeding one hundred thousand dollars per violation be imposed upon such person. If such person does not request a hearing within the time specified in the notice or fails to appear at the hearing, the commissioner may, as the facts require, order that a civil penalty not exceeding one hundred thousand dollars per violation be imposed upon such person.
(3) Each action undertaken by the commissioner under this subsection shall be in accordance with the provisions of chapter 54.
Section 4-182(c) of the Connecticut General Statutes provides, in pertinent part, that:
If the agency finds that public health, safety or welfare imperatively requires emergency action, and incorporates a finding to that effect in its order, summary suspension of a license may be ordered pending proceedings for revocation or other action. These proceedings shall be promptly instituted and determined.
Section 36a-1-22 of the Regulations of Connecticut State Agencies provides, in pertinent part that:
The commissioner may amend the notice of hearing at any stage of the contested case prior to the close of evidence. The presiding officer shall provide parties . . . with notice of the amendment and shall provide them with sufficient time to prepare their case in light of the amendment. A party that has requested a hearing on the original notice need not request a hearing on the amended notice and any such hearing shall proceed on the amended notice as if it were the original notice.
As a result of investigation, on June 21, 2012, the Commissioner issued a Notice of Intent to Revoke and Refuse to Renew Mortgage Broker License and Notice of Right to Hearing (“Original Notice”) against Anilom. Anilom requested a hearing in response to the Original Notice. On August 6, 2012, the Commissioner issued an Amended Notice of Intent to Revoke and Refuse to Renew Mortgage Broker License against Anilom (“Amended Notice”). Anilom received the Amended Notice and the hearing scheduled for the matters asserted in the Amended Notice are presently subject to an open-ended continuance.
II. MATTERS ASSERTED
| 1. |
Anilom is a Connecticut corporation with an office at 9 Mott Avenue, Suite 306, Norwalk, Connecticut. |
| 2. |
Anilom has been licensed as a mortgage broker in Connecticut on the Nationwide Mortgage Licensing System and Registry (“NMLS”) since 2008. Anilom’s request for renewal of its mortgage broker license for the 2011 licensing period was approved on March 7, 2011. |
| 3. |
Molina is an individual whose unique identifier on NMLS is 130560. |
| 4. |
At all times pertinent hereto, Molina is and has been the sole owner and president of Anilom and both its qualified individual and designated contact person.
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| 5. |
Molina was licensed as a mortgage loan originator on January 13, 2012, and at all times relevant hereto, was and presently is sponsored by Anilom. |
| 6. | In April and May of 2011, the Division posted seven deficiencies to Anilom’s NMLS account requesting certain information necessary to confirm that Anilom was maintaining the required statutory tangible net worth. |
| 7. |
On May 26, 2011, Anilom filed with the Commissioner, through NMLS, a required financial statement for Anilom for the period ending March 31, 2011. |
| 8. | On November 15, 2011, NMLS posted an automated deficiency for Anilom’s failure to have filed its third quarter standard mortgage call report. |
| 9. | On December 20, 2011, Anilom requested renewal of its license to act as a mortgage broker in Connecticut under Part I of Chapter 668, Sections 36a-485 to 36a-534c, inclusive, of the Connecticut General Statutes on NMLS for the 2012 licensing period (“2012 licensing period”). |
| 10. | As of January 9, 2012, Anilom had not provided all of the information requested in the deficiencies, as more fully described in paragraph 6 above, relating to its financial statement and maintenance of the required statutory tangible net worth, and Anilom had not filed the third quarter mortgage call report, as more fully described in paragraph 8 above, and accordingly, Anilom’s renewal request was placed “on hold”. |
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11. |
On January 23, 2012, Anilom filed a financial statement with the Commissioner, through NMLS, for the period ending November 30, 2011. |
| 12. | On January 25, 2012, in response to Anilom’s filing described in paragraph 11 above, the Commissioner, through the Division, posted five deficiencies to Anilom’s NMLS account requesting certain information necessary to confirm that Anilom was maintaining the required statutory tangible net worth. |
| 13. | On February 15, 2012, NMLS posted an automated deficiency for Anilom’s failure to have filed its fourth quarter standard mortgage call report. |
| 14. | On February 16, 2012, pursuant to Section 4-182(c) of the Connecticut General Statutes, the Division sent a letter to Anilom’s designated contact employee at Anilom’s designated mailing address giving Anilom an opportunity to show compliance with all lawful requirements for retention of its mortgage broker license in Connecticut (“Compliance Letter”). The Compliance Letter required Anilom to respond to the requests for supplemental documentation regarding its submitted financial statements, to file outstanding mortgage call reports, and to provide a written response no later than March 2, 2012. |
| 15. | As of March 2, 2012, Anilom had not filed a written response to or provided any of the information requested in the Compliance Letter. |
| 16. |
On March 5, 2012, the Compliance Letter was returned to the Department marked “Return to Sender – Unclaimed – Unable to Forward.” |
| 17. | On March 13, 2012, a copy of the Compliance Letter was sent via first class mail to a post office box address provided by Respondents via telephone. |
| 18. | On March 31, 2012, NMLS posted an automated deficiency for Anilom’s failure to have filed the financial condition section of the standard mortgage call report for 2011. |
| 19. | On April 26, 2012, pursuant to Section 4-182(c) of the Connecticut General Statutes, the Division sent a letter to Anilom’s designated contact employee at Anilom’s designated mailing address, and sent a copy of the Compliance Letter to Anilom’s designated contact employee at the post office box address Respondents had provided via telephone, as described in paragraph 17 above, giving Anilom an opportunity to show compliance with all lawful requirements for retention of its mortgage broker license in Connecticut (“Second Compliance Letter”). The Second Compliance Letter required Anilom to file the financial condition section of the standard mortgage call report for 2011 no later than May 4, 2012. |
| 20. | On May 17, 2012, the Second Compliance Letter sent to the post office box address was returned to the Division marked “Return to Sender – Unclaimed – Unable to Forward”. On May 22, 2012, the Second Compliance Letter sent to the designated mailing address was returned to the Division marked “Returned to Sender – Unclaimed”. |
| 21. | As of May 4, 2012, Anilom had not filed any information in response to the Second Compliance Letter. |
| 22. | On May 9, 2012, the designated mailing address for the licensed office of Anilom was changed by Molina to reflect the post office box address referenced in paragraph 17 above. |
| 23. | On June 20, 2012, Molina amended Anilom’s licensed office address and its designated mailing address to 9 Mott Avenue, Suite 306, Norwalk, Connecticut. |
| 24. | On or about September 6, 2012, Anilom represented to the Division that Molina had opened certain certificates of deposit and made certain deposits on behalf of Anilom in connection with outstanding issues regarding tangible net worth. |
| 25. | On September 12, 2012, Anilom filed its third and fourth quarter standard mortgage call reports for 2011, and filed its first and second quarter standard mortgage call reports for 2012. |
| 26. | On September 13, 2012, Respondents provided the Division with a balance sheet reflecting certain certificates of deposit and deposits as assets, among other assets, and stating the total liabilities and equity for Anilom as of September 12, 2012. |
| 27. | The balance sheet described in paragraph 26 above intentionally misrepresented the assets and liabilities of Anilom, and Anilom has not established that it has the statutorily required tangible net worth. |
| 28. | On May 9, 2012, and in subsequent attestations to date, Molina attested to a “no” answer to the following disclosure question required to be answered in connection with both his position as a control person at Anilom, and in connection with his mortgage loan originator’s license as further described in paragraphs 4 and 5 above: “Have you been the subject of a foreclosure action within the past 10 years?” |
| 29. | Molina specifically represented to the Division at a meeting on September 13, 2012, that he was not an owner of property he had resided in at 104 Wellers Bridge Road, Roxbury, Connecticut. |
| 30. | Molina was an owner of the property referenced in paragraph 29 above and was a mortgagor on such property. |
| 31. | Molina was a party to a foreclosure proceeding on the property referenced in paragraph 29 above that was initiated in March 2004 and resulted in a judgment of strict foreclosure in June 2004. |
| 32. |
Molina is the owner and mortgagor of his current residence, which property is currently the subject of a foreclosure proceeding, which proceeding was filed on May 16, 2012.
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III. STATUTORY BASIS FOR REVOCATION AND REFUSAL TO RENEW
MORTGAGE BROKER LICENSE, REVOCATION OF MORTGAGE LOAN
ORIGINATOR LICENSE, ORDER TO CEASE AND DESIST
AND IMPOSITION OF CIVIL PENALTY
Section 36a-494(a)(1) of the 2012 Supplement to the General Statutes, as amended by Public Act 12-96, provides, in pertinent part, that:
The commissioner may . . . revoke or refuse to renew any . . . mortgage broker license or take any other action, in accordance with the provisions of section 36a-51, for any reason which would be sufficient grounds for the commissioner to deny an application for such license under sections 36a-485 to 36a-498f, inclusive, . . . 36a-534a and 36a-534b, . . . or if the commissioner finds that the licensee, any control person of the licensee, the qualified individual . . . with supervisory authority, trustee, employee or agent of such licensee has . . .. . . has done any of the following: (A) Made any material misstatement in the application; [or] . . . (C) violated any of the provisions of this title . . . .
Section 36a-494(a)(2) of the 2012 Supplement to the General Statutes, as amended by Public Act 12-96, provides, in pertinent part, that:
The commissioner may . . . revoke . . . any mortgage loan originator license . . . or take any other action, in accordance with the provisions of section 36a-51, for any reason which would be sufficient grounds for the commissioner to deny an application for such license under sections 36a-485 to 36a-498f, inclusive, . . . 36a-534a and 36a-534b, . . . or if the commissioner finds that the licensee . . . has violated any of the provisions of this title . . . .
Section 36a-494(b) of the 2012 Supplement to the General Statutes, as amended by Public Act 12-96, provides, in pertinent part, that:
Whenever it appears to the commissioner that (1) any person has violated, is violating or is about to violate any of the provisions of sections 36a-485 to 36a-498a, inclusive, . . . 36a-534a and 36a-534b, . . . [or] (2) any person is, was or would be cause of the violation of any such provisions . . . due to an act or omission such person knew or should have known would contribute to such violation, . . . the commissioner may take action against such person . . . in accordance with sections 36a-50 . . . and 36a-52.
Section 36a-489(a)(1) of the 2012 Supplement to the General Statutes, as amended by Public Act 12-96, provides, in pertinent part, that:
The commissioner shall not issue an initial license for a . . . mortgage broker unless the commissioner, at a minimum, finds that: (A) The applicant meets the requirements of subsection (a) of section 36a-488 . . . ; (C) the applicant demonstrates that the financial responsibility, character and general fitness of the applicant, the control person of the applicant and the qualified individual . . . are such as to command the confidence of the community and to warrant a determination that the applicant will operate honestly, fairly and efficiently within the purposes of sections 36a-485 to 36a-498f, inclusive, . . . 36a-534a and 36a-534b . . . ; and (E) the applicant has not made a material misstatement in the application.
Section 36a-489(b)(1) of the 2012 Supplement to the General Statutes, as amended by Public Act 12-96, provides, in pertinent part, that:
The commissioner shall not issue an initial license for a mortgage loan originator . . . unless the commissioner, at a minimum, finds that the applicant has: . . . (C) demonstrated financial responsibility, character and general fitness so as to command the confidence of the community and to warrant a determination that the mortgage loan originator . . . will operate honestly, fairly and efficiently within the purposes of sections 36a-485 to 36a-498f, inclusive, . . . 36a-534a and 36a-534b . . . ; and (F) not made a material misstatement in the application.
Section 36a-488(a)(1) of the 2012 Supplement to the General Statutes, as amended by Public Act 12-96, provides, in pertinent part, that:
The commissioner shall not issue a . . . mortgage broker license to any person unless such person meets the following tangible net worth . . . requirements, as applicable: (A) . . . the minimum tangible net worth requirement for . . . a mortgage broker shall be . . . (ii) on and after March 2, 2009, fifty thousand dollars . . . .
Section 36a-488(a)(2) of the 2012 Supplement to the General Statutes provides, in pertinent part, that:
Each licensee shall maintain the net worth required by this subsection.
Section 36a-488(b) of the 2012 Supplement to the General Statutes provides, in pertinent part, that:
On and after July 1, 2008, an application for a license as a . . . mortgage broker office or renewal of such license shall be filed, in a form prescribed by the commissioner, with the system. . . . The following supplementary information shall be filed directly with the commissioner: . . . (3) such other information pertaining to the applicant, . . . as the commissioner may require. . . .
Section 36a-489(a)(2) of the 2012 Supplement to the General Statutes, as amended by Public Act 12-96, provides, in pertinent part, that:
(A) The minimum standards for license renewal for a . . . mortgage broker shall include the following: (i) The applicant continues to meet the minimum standards under subdivision (1) of this subsection . . . .
(B) The license of a . . . mortgage broker failing to satisfy the minimum standards for license renewal shall expire. . . .
Section 36a-534b(c)(3) of the 2012 Supplement to the General Statutes provides, in pertinent part, that:
Any person making any filing or submission of any information on the system shall do so in accordance with the procedures and requirements of the system . . . . Each . . . mortgage broker . . . shall submit to the system reports of condition that shall be in such form and shall contain such information as the system may require.
Section 36a-53a of the Connecticut General Statutes provides:
No person shall make or cause to be made orally or in any document filed with the commissioner or in any proceeding, investigation or examination under this title, any statement which is, at the time and in the light of the circumstances under which it is made, false or misleading in any material respect.
| 1. |
As set forth in paragraphs 2, 6 through 21, inclusive, and 24 through 27, inclusive, of the Matters Asserted, Anilom has failed to maintain the statutory tangible net worth requirement, which constitutes a violation of Section 36a-488(a)(2) of the 2012 Supplement to the General Statutes, which constitutes sufficient grounds to revoke or refuse to renew Anilom’s license to act as a mortgage broker in Connecticut for the 2012 licensing period under Section 36a-494(a)(1)(C) of the 2012 Supplement to the General Statutes, as amended, and subsections (a) and (b) of Section 36a-51 of the 2012 Supplement to the General Statutes. |
| 2. |
As set forth in paragraphs 2, 6 through 21, inclusive, and 24 through 27, inclusive, of the Matters Asserted, Anilom’s failure to establish that it has the minimum tangible net worth would constitute sufficient grounds to deny a mortgage broker license under Sections 36a-489(a)(1) and 36a-488(a)(1) of the 2012 Supplement to the General Statutes, as amended, which constitutes sufficient grounds to revoke or refuse to renew Anilom’s license to act as a mortgage broker in Connecticut for the 2012 licensing period under Section 36a-494(a)(1) of the 2012 Supplement to the General Statutes, as amended, and subsections (a) and (b) of Section 36a-51 of the 2012 Supplement to the General Statutes. Such failure by Anilom also constitutes sufficient grounds to refuse to renew Anilom’s mortgage broker license under Section 36a-489(a)(2)(A) of the 2012 Supplement to the General Statutes, as amended, which would cause such license to expire pursuant to Section 36a-489(a)(2)(B) of the 2012 Supplement to the General Statutes, as amended. |
| 3. |
As set forth in paragraphs 8, 13, 18 and 25 of the Matters Asserted, Anilom’s failure to timely file its third and fourth quarter mortgage call reports for 2011 and its financial condition section of the standard mortgage call report for 2011 each constitute violations of Section 36a-534b(c)(3) of the 2012 Supplement to the General Statutes. Such violations constitute sufficient grounds to revoke or refuse to renew Anilom’s mortgage broker license in Connecticut for the 2012 licensing period under Section 36a-494(a)(1)(C) of the 2012 Supplement to the General Statutes, as amended, and subsections (a) and (b) of Section 36a-51 of the 2012 Supplement to the General Statutes, and forms the basis to issue an order to cease and desist pursuant to Section 36a-494(b) of the 2012 Supplement to the General Statutes, as amended, and Section 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty pursuant to Section 36a-494(b) of the 2012 Supplement to the General Statutes, as amended, and Section 36a-50(a) of the Connecticut General Statutes, as amended. Section 36a-50(a) of the Connecticut General Statutes, as amended, authorizes the Commissioner to impose a civil penalty upon Anilom in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation, subject to Anilom’s right to a hearing on the allegations set forth above. |
| 4. |
As set forth in paragraphs 2 and 28 through 32, inclusive, of the Matters Asserted, Anilom, through Molina, made a material misstatement in Anilom’s application, which would constitute sufficient grounds to deny a mortgage broker license under Sections 36a-489(a)(1) and 36a-488(a)(1) of the 2012 Supplement to the General Statutes, as amended, which constitutes sufficient grounds to revoke or refuse to renew Anilom’s license to act as a mortgage broker in Connecticut for the 2012 licensing period under Section 36a-494(a)(1) of the 2012 Supplement to the General Statutes, as amended, and subsections (a) and (b) of Section 36a-51 of the 2012 Supplement to the General Statutes. Such material misstatement by Anilom also constitutes sufficient grounds to refuse to renew Anilom’s mortgage broker license under Section 36a-489(a)(2)(A) of the 2012 Supplement to the General Statutes, as amended, which would cause such license to expire pursuant to Section 36a-489(a)(2)(B) of the 2012 Supplement to the General Statutes, as amended.
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| 5. |
As set forth in paragraphs 24, 26 and 27 of the Matters Asserted, Anilom, through Molina, made or caused to be made orally and in a document filed with the Commissioner in a proceeding and in an investigation under Title 36a, statements which were, at the time and in the light of the circumstances under which they were made, false or misleading in a material respect, in violation of Section 36a-53a of the Connecticut General Statutes. Such violation constitutes sufficient grounds to revoke or refuse to renew Anilom’s mortgage broker license in Connecticut for the 2012 licensing period under Section 36a-494(a)(1)(C) of the 2012 Supplement to the General Statutes, as amended, and subsections (a) and (b) of Section 36a-51 of the 2012 Supplement to the General Statutes, and forms the basis to issue an order to cease and desist pursuant to Section 36a-494(b) of the 2012 Supplement to the General Statutes, as amended, and Section 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty pursuant to Section 36a-494(b) of the 2012 Supplement to the General Statutes, as amended, and Section 36a-50(a) of the Connecticut General Statutes, as amended. Section 36a-50(a) of the Connecticut General Statutes, as amended, authorizes the Commissioner to impose a civil penalty upon Anilom in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation, subject to Anilom’s right to a hearing on the allegations set forth above. |
| 6. | As set forth in paragraphs 5 and 28 through 32, inclusive, of the Matters Asserted, Molina made a material misstatement in Molina’s mortgage loan originator application, which would constitute sufficient grounds to deny a mortgage loan originator license under Sections 36a-489(b)(1) of the 2012 Supplement to the General Statutes, as amended, which constitutes sufficient grounds to revoke Molina’s license to act as a mortgage loan originator in Connecticut for the 2012 licensing period under Section 36a-494(a)(2) of the 2012 Supplement to the General Statutes, as amended, and subsections (a) and (b) of Section 36a-51 of the 2012 Supplement to the General Statutes. |
| 7. |
As set forth in paragraphs 4, 5 and 24 through 32, inclusive, of the Matters Asserted, Molina made or caused to be made orally and in a document filed with the Commissioner in a proceeding and in an investigation under Title 36a, statements which were, at the time and in the light of the circumstances under which they were made, false or misleading in a material respect, in violation of Section 36a-53a of the Connecticut General Statutes. Such violation constitutes sufficient grounds to revoke Molina’s mortgage loan originator license in Connecticut for the 2012 licensing period under Section 36a-494(a)(2) of the 2012 Supplement to the General Statutes, as amended, and subsections (a) and (b) of Section 36a-51 of the 2012 Supplement to the General Statutes, and forms the basis to issue an order to cease and desist pursuant to Section 36a-494(b) of the 2012 Supplement to the General Statutes, as amended, and Section 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty pursuant to Section 36a-494(b) of the 2012 Supplement to the General Statutes, as amended, and Section 36a-50(a) of the Connecticut General Statutes, as amended. Section 36a-50(a) of the Connecticut General Statutes, as amended, authorizes the Commissioner to impose a civil penalty upon Molina in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation, subject to Molina’s right to a hearing on the allegations set forth above. |
| 8. | As set forth in paragraphs 1 through 32, inclusive, of the Matters Asserted, the Commissioner is unable to continue to find that Molina demonstrates financial responsibility, character and general fitness such as to command the confidence of the community and to warrant a determination that he will operate honestly, fairly and efficiently within the purposes of Sections 36a-485 to 36a-498f, inclusive, 36a-534a and 36a-534b, which would constitute sufficient grounds to deny a mortgage loan originator license under Section 36a-489(b)(1) of the 2012 Supplement to the General Statutes, as amended, which constitutes sufficient grounds to revoke Molina’s license to act as a mortgage loan originator in Connecticut for the 2012 licensing period under Section 36a-494(a)(1) of the 2012 Supplement to the General Statutes, as amended, and subsections (a) and (b) of Section 36a-51 of the 2012 Supplement to the General Statutes. |
| 9. |
As set forth in paragraphs 1 through 32, inclusive, of the Matters Asserted, the Commissioner is unable to continue to find that Anilom demonstrates that the financial responsibility, character and general fitness of the applicant, the control persons of the applicant and the qualified individual are such as to command the confidence of the community and to warrant a determination that the applicant will operate honestly, fairly and efficiently within the purposes of Sections 36a-485 to 36a-498f, inclusive, 36a-534a and 36a-534b, which would constitute sufficient grounds to deny a mortgage broker license under Sections 36a-489(a)(1) and 36a-488(a)(1) of the 2012 Supplement to the General Statutes, as amended, which constitutes sufficient grounds to revoke or refuse to renew Anilom’s license to act as a mortgage broker in Connecticut for the 2012 licensing period under Section 36a-494(a)(1) of the 2012 Supplement to the General Statutes, as amended, and subsections (a) and (b) of Section 36a-51 of the 2012 Supplement to the General Statutes.
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IV. FINDINGS AND STATUTORY BASIS FOR TEMPORARY ORDER
TO CEASE AND DESIST AND ORDER OF SUMMARY SUSPENSION
The Commissioner finds that public safety and welfare imperatively require emergency action to summarily suspend Anilom’s license to act as a mortgage broker in Connecticut and to summarily suspend Molina’s license to engage in the business of a mortgage loan originator in Connecticut under Section 4-182(c) of the Connecticut General Statutes and finds that public welfare requires immediate action to issue a temporary order requiring Anilom and Molina to cease and desist from violating the law under Section 36a-52(b) of the Connecticut General Statutes, in that the allegations set forth herein have deprived the Commissioner of all confidence that Molina and Anilom are conducting a business in a manner consistent with applicable law and that any ongoing residential mortgage loan activity must be halted to protect the public.
V. TEMPORARY ORDER TO CEASE AND DESIST, ORDER OF SUMMARY
SUSPENSION, NOTICE OF INTENT TO REVOKE OR REFUSE TO RENEW
MORTGAGE BROKER LICENSE, NOTICE OF INTENT TO REVOKE MORTGAGE
LOAN ORIGINATOR LICENSE, NOTICE OF INTENT TO ISSUE ORDER TO
CEASE AND DESIST, NOTICE OF INTENT TO IMPOSE CIVIL
PENALTY AND NOTICE OF RIGHT TO HEARING
WHEREAS, the Commissioner has reason to believe that Anilom has engaged in acts or conduct which constitutes sufficient grounds for the Commissioner to revoke or refuse to renew Anilom’s license to act as a mortgage broker in Connecticut pursuant to Sections 36a-494(a)(1) and 36a-494(a)(1)(C) of the 2012 Supplement to the General Statutes, as amended, and subsections (a) and (b) of Section 36a-51 of the 2012 Supplement to the General Statutes, and forms a basis to issue an order to cease and desist against Anilom pursuant to Section 36a-494(b) of the 2012 Supplement to the General Statutes, as amended, and Section 36a-52(a) of the Connecticut General Statutes and to impose a civil penalty upon Anilom pursuant to Section 36a-494(b) of the 2012 Supplement to the General Statutes, as amended, and Section 36a-50(a) of the Connecticut General Statutes, as amended;
WHEREAS, the Commissioner has reason to believe that Molina has engaged in acts or conduct which constitutes sufficient grounds for the Commissioner to revoke Molina’s license to engage in the business of a mortgage loan originator in Connecticut pursuant to Sections 36a-494(a)(2) of the 2012 Supplement to the General Statutes, as amended, and subsections (a) and (b) of Section 36a-51 of the 2012 Supplement to the General Statutes, and forms a basis to issue an order to cease and desist against Molina pursuant to Section 36a-494(b) of the 2012 Supplement to the General Statutes, as amended, and Section 36a-52(a) of the Connecticut General Statutes and to impose a civil penalty upon Molina pursuant to Section 36a-494(b) of the 2012 Supplement to the General Statutes, as amended, and Section 36a-50(a) of the Connecticut General Statutes, as amended;
AND WHEREAS, the Commissioner has made the findings required under Sections 36a-52(b) and 4-182(c) of the Connecticut General Statutes.
THE COMMISSIONER THEREFORE ORDERS, pursuant to the authority granted in Section 36a-52(b) of the Connecticut General Statutes, that Anilom Mortgage Corporation immediately CEASE AND DESIST from further violations of Section 36a-534b(c)(3) of the 2012 Supplement to the General Statutes and Section 36a-53a of the Connecticut General Statutes. This Temporary Order shall become effective upon receipt by Anilom Mortgage Corporation and, unless set aside or modified by a court, shall remain in effect until the effective date of a permanent order or dismissal of the matters asserted in this Temporary Order.
THE COMMISSIONER FURTHER ORDERS, pursuant to the authority granted in Section 36a-52(b) of the Connecticut General Statutes, that Samuel Molina Jr. immediately CEASE AND DESIST from further violations of Section 36a-53a of the Connecticut General Statutes. This Temporary Order shall become effective upon receipt by Samuel Molina Jr., and, unless set aside or modified by a court, shall remain in effect until the effective date of a permanent order or dismissal of the matters asserted in this Temporary Order.
THE COMMISSIONER FURTHER ORDERS, pursuant to the authority granted in Section 36a-51(b) of the 2012 Supplement to the General Statutes and Section 4-182(c) of the Connecticut General Statutes, the license of Anilom Mortgage Corporation to act as a mortgage broker in Connecticut be and is hereby SUMMARILY SUSPENDED pending proceedings for revocation and refusal to renew.
THE COMMISSIONER FURTHER ORDERS, pursuant to the authority granted in Section 36a-51(b) of the 2012 Supplement to the General Statutes and Section 4-182(c) of the Connecticut General Statutes, the license of Samuel Molina Jr. to engage in the business of a mortgage loan originator in Connecticut be and is hereby SUMMARILY SUSPENDED pending proceedings for revocation.
FURTHER, notice is hereby given to Anilom that the Commissioner intends to REVOKE and REFUSE TO RENEW Anilom’s license to act as a mortgage broker in Connecticut, issue an order requiring Anilom to CEASE AND DESIST from violating Section 36a-534b(c)(3) of the 2012 Supplement to the General Statutes and Section 36a-53a of the Connecticut General Statutes, and impose a CIVIL PENALTY upon Anilom as set forth herein, subject to Anilom’s right to a hearing on the allegations set forth above.
FURTHER, notice is hereby given to Molina that the Commissioner intends to issue an order to REVOKE Molina’s license to engage in the business of a mortgage loan originator in Connecticut, issue an order requiring Molina to CEASE AND DESIST from violating Section 36a-53a of the Connecticut General Statutes, and impose a CIVIL PENALTY upon Molina as set forth herein, subject to Molina’s right to a hearing on the allegations set forth above.
A hearing will be granted to each Respondent if a written request for a hearing is received by the Department of Banking, Consumer Credit Division, 260 Constitution Plaza, Hartford, Connecticut 06103-1800 within fourteen (14) days following its receipt of this Temporary Order to Cease and Desist, Order of Summary Suspension, Second Amended Notice of Intent to Revoke and Refuse to Renew Mortgage Broker License, Notice of Intent to Revoke Mortgage Loan Originator, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing as set forth in subsections (a) and (b) of Section 36a-51 of the 2012 Supplement to the General Statutes. This Temporary Order to Cease and Desist, Order of Summary Suspension, Second Amended Notice of Intent to Revoke and Refuse to Renew Mortgage Broker License, Notice of Intent to Revoke Mortgage Loan Originator, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing shall be deemed received on the earlier of the date of actual receipt, or seven days after mailing or sending. The enclosed Appearance and Request for Hearing Form must be completed and mailed to the above address. If Respondents will not be represented by an attorney at the hearing, please complete the Appearance and Request for Hearing Form as “pro se”. Once a written request for hearing is received, the Commissioner may issue a notification of hearing and designation of hearing officer that acknowledges receipt of a request for a hearing, designates a hearing officer and sets the date of the hearing in accordance with Section 4-177 of the Connecticut General Statutes and Section 36a-1-21 of the Regulations of Connecticut State Agencies. If a hearing is requested, the hearing will be held on December 12, 2012, at 10 a.m., at the Department of Banking, 260 Constitution Plaza, Hartford, Connecticut.
The hearing will be held in accordance with the provisions of Chapter 54 of the Connecticut General Statutes, unless Respondents fail to appear at the requested hearing. At such hearing, each Respondent will have the right to appear and present evidence, rebuttal evidence and argument on all issues of fact and law to be considered by the Commissioner.
Anilom’s previously filed request for hearing is preserved as it relates to this Second Amended Notice of Intent to Revoke and Refuse to Renew Mortgage Broker License. If Anilom does not request a hearing within the time prescribed, the Commissioner will issue an order (1) that Anilom cease and desist from violating Section 36a-534b(c)(3) of the 2012 Supplement to the General Statutes and Section 36a-53a of the Connecticut General Statutes, and (2) that may order a civil penalty not to exceed One Hundred Thousand Dollars ($100,000) per violation be imposed upon Anilom.
If Molina does not request a hearing within the time prescribed, the Commissioner will issue an order (1) revoking Molina’s license to engage in the business of a mortgage loan originator in Connecticut, (2) that Molina cease and desist from violating Section 36a-53a of the Connecticut General Statutes, and (3) that may order a civil penalty not to exceed One Hundred Thousand Dollars ($100,000) per violation be imposed upon Molina.
So ordered at Hartford, Connecticut
this 10th of October 2012. ________/s/_________
Howard F. Pitkin
Banking Commissioner