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IN THE MATTER OF: CHRYSALIS FUNDING OF ("Chrysalis Funding") |
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SETTLEMENT AGREEMENT |
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”, and Sections 9 and 19 to 21, inclusive, of Public Act 09-209;
WHEREAS, Chrysalis Funding is a limited liability company currently licensed as a mortgage correspondent 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 of the Department of Banking, conducted an investigation pursuant to Section 36a-17 of the Connecticut General Statutes;
WHEREAS, as during the course of such investigation, Chrysalis Funding self-reported that during 2009, it had employed or retained one individual as a mortgage loan originator without licensing such individual in violation of Section 36a-486(b) of the Connecticut General Statutes, as amended by Public Acts 09-208 and 09-209;
WHEREAS, the Commissioner believes that such conduct would support initiation of enforcement proceedings against Chrysalis Funding, including proceedings to revoke Chrysalis Funding’s license pursuant to Section 36a-494(a) of the Connecticut General Statutes, as amended by Public Act 09-209, and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, issue a cease and desist order against Chrysalis Funding pursuant to Section 36a-494(b) of the Connecticut General Statutes, as amended by Public Act 09-209, and Section 36a-52(a) of the Connecticut General Statutes, and impose a civil penalty of up to one hundred thousand dollars ($100,000) per violation on Chrysalis Funding pursuant to Section 36a-494(b) of the Connecticut General Statutes, as amended, and Section 36a-50(a) of the Connecticut General Statutes;
WHEREAS, the individual involved in the conduct described herein obtained a mortgage loan originator’s license with Chrysalis Funding on December 15, 2009, and is currently licensed as a mortgage loan originator with Chrysalis Funding;
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 agreed settlement, unless precluded by law;
WHEREAS, both the Commissioner and Chrysalis Funding acknowledge the possible consequences of formal administrative proceedings;
WHEREAS, Chrysalis Funding agrees to voluntarily enter into this Settlement Agreement without admitting or denying that the conduct set forth herein was in violation of the Connecticut General Statutes, and solely for the purposes of obviating the need for formal administrative proceedings concerning the conduct described above;
WHEREAS, Chrysalis Funding herein represents to the Commissioner that it has accurately self-reported the scope of the activities of the one mortgage loan originator with Chrysalis Funding, and further that Chrysalis Funding has reviewed its files and no other individual employed or retained by Chrysalis Funding in 2009 was engaged in mortgage-related activity without the required licensure under Part I of Chapter 668, Sections 36a-485 et seq. of the Connecticut General Statutes;
WHEREAS, Chrysalis Funding herein represents to the Commissioner that it has reviewed and updated its internal policies, procedures and controls for assessing whether an individual engaged in mortgage-related activity with Chrysalis Funding requires licensure from the Commissioner under Part I of Chapter 668, Sections 36a-485 et seq. of the Connecticut General Statutes;
AND WHEREAS, Chrysalis Funding, through its execution of this Settlement Agreement, voluntarily agrees to waive any rights to a hearing upon the conduct described in this Settlement Agreement, and waives the right to seek judicial review or otherwise challenge or contest the validity of this Settlement Agreement.
NOW THEREFORE, the Commissioner and Chrysalis Funding enter into this Settlement Agreement as follows:
| 1. | No later than the date this Settlement Agreement is executed by Chrysalis Funding, Chrysalis Funding shall remit to the Department of Banking, by cashier’s check, certified check or money order made payable to “Treasurer, State of Connecticut”, the sum of One Thousand Dollars ($1,000) as a civil penalty; |
| 2. | Upon entry of this Settlement Agreement, this matter will be resolved and the Commissioner will not take any future enforcement action against Chrysalis Funding based upon the conduct described herein; provided that entry of this Settlement Agreement is without prejudice to the right of the Commissioner to take enforcement action against Chrysalis Funding based on the conduct described herein if any representations made by Chrysalis Funding in this Settlement Agreement are subsequently discovered to be untrue or if Chrysalis Funding is not fully complying with any term or condition stated herein; |
| 3. | Nothing in the entry of this Settlement Agreement shall adversely affect the ability of Chrysalis 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 to apply for or obtain licensure of its mortgage loan originators from the Commissioner; and |
| 4. | Notwithstanding paragraph 2 herein, execution of this Settlement Agreement is without prejudice to the right of the Commissioner to take enforcement action against Chrysalis Funding to enforce this Settlement Agreement if the Commissioner determines that Chrysalis Funding is not fully complying with any term or condition stated herein. For purposes of this paragraph, a violation of this Settlement Agreement shall be deemed to be a violation of an order of the Commissioner. |
IN WITNESS WHEREOF, the parties hereto have caused this Settlement Agreement to be executed by each of them or their duly authorized representatives on the dates hereinafter subscribed.
Dated at Hartford, Connecticut
this 9th day of February 2010. ________/s/_________
Howard F. Pitkin
Banking Commissioner
I, Michael Russo, state on behalf of Chrysalis Funding of Connecticut LLC, that I have read the foregoing Settlement Agreement; that I know and fully understand its contents; that I am authorized to execute this Settlement Agreement on behalf of Chrysalis Funding of Connecticut LLC; that Chrysalis Funding of Connecticut LLC agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that Chrysalis Funding of Connecticut LLC, voluntarily agrees to enter into this Settlement Agreement, expressly waiving any right to a hearing on the matters described herein.
By: ________/s/_________
Name: Michael Russo
Title: Owner
State of: Connecticut
County of: New Haven
On this the 2nd day of February 2010, before me, Andrew J. Fiorention, the undersigned officer, personally appeared Michael Russo who acknowledged himself to be the Owner of Chrysalis Funding of Connecticut LLC, a member managed/manager managed limited liability company, that he as such Owner, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the limited liability company by himself as Owner.
In witness whereof I hereunto set my hand.
________/s/_________
Notary Public
Date Commission Expires: Feb. 28, 2014