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IN THE MATTER OF: DARIEN FINANCIAL SERVICES, INC. ("Darien Financial Services") |
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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, Darien Financial Services is a Connecticut corporation that was licensed as a mortgage lender in Connecticut under Part I of Chapter 668, Sections 36a-485 et seq. of the Connecticut General Statutes;
WHEREAS, on August 10, 2009, the Commissioner, through the Consumer Credit Division of the Department of Banking, conducted an examination pursuant to Section 36a-17 of the Connecticut General Statutes into the activities of Darien Financial Services 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;
WHEREAS, as a result of such examination, the Commissioner alleges that Darien Financial Services employed or retained, during the period of November 2007 through January 2008, one (1) individual as an originator without registering such individual, in violation of Sections 36a-486(b) and 36a-511(b) of the then applicable Connecticut General Statutes;
WHEREAS, on January 1, 2010, Darien Financial Services’ license was marked “Terminated – Expired” on the Nationwide Mortgage Licensing System (“NMLS”);
WHEREAS, the Commissioner believes that such allegations would support initiation of enforcement proceedings against Darien Financial Services, including proceedings to issue a cease and desist order against Darien Financial Services 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 Darien Financial Services pursuant to Section 36a-494(b) of the Connecticut General Statutes, as amended, and Section 36a-50(a) 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 agreed settlement, unless precluded by law;
WHEREAS, both the Commissioner and Darien Financial Services acknowledge the possible consequences of formal administrative proceedings;
WHEREAS, Darien Financial Services agrees to voluntarily enter into this Settlement Agreement without admitting or denying any allegations set forth herein, and solely for the purposes of obviating the need for formal administrative proceedings concerning the allegations described above;
WHEREAS, Darien Financial Services herein represents to the Commissioner that the individual alleged to be an unregistered originator during the period of November 2007 through January 2008, in violation of Sections 36a-486(b) and 36a-511(b) of then applicable Connecticut General Statutes, is no longer engaged in any mortgage-related activity with Darien Financial Services that would require Darien Financial Services to obtain licensure for such individual from the Commissioner under Part I of Chapter 668, Sections 36a-485 et seq. of the Connecticut General Statutes;
WHEREAS, Darien Financial Services 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 Darien Financial Services requires licensure from the Commissioner under Part I of Chapter 668, Sections 36a-485 et seq. of the Connecticut General Statutes;
AND WHEREAS, Darien Financial Services, through its execution of this Settlement Agreement, voluntarily agrees to waive any rights to a hearing upon the allegations contained 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 Darien Financial Services enter into this Settlement Agreement as follows:
| 1. | No later than the date this Settlement Agreement is executed by Darien Financial Services, Darien Financial Services 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 Darien Financial Services based upon the allegations contained herein; provided that entry of this Settlement Agreement is without prejudice to the right of the Commissioner to take enforcement action against Darien Financial Services based on the allegations contained herein if any representations made by Darien Financial Services in this Settlement Agreement are subsequently discovered to be untrue or if Darien Financial Services 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 Darien Financial Services 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; |
| 4. | Notwithstanding paragraph 2 herein, execution of this Settlement Agreement is without prejudice to the right of the Commissioner to take enforcement action against Darien Financial Services to enforce this Settlement Agreement if the Commissioner determines that Darien Financial Services 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 5th day of February 2010. ________/s/_________
Howard F. Pitkin
Banking Commissioner
I, John V. Greco, state on behalf of Darien Financial Services, Inc., 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 Darien Financial Services, Inc.; that Darien Financial Services, Inc., agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that Darien Financial Services, Inc., voluntarily agrees to enter into this Settlement Agreement, expressly waiving any right to a hearing on the matters described herein.
By: ________/s/_________
Name: John V. Greco
Title: President
State of: Connecticut
County of: Fairfield
On this the 3rd day of February 2010, before me, Robert W. Finke, the undersigned officer, personally appeared John V. Greco who acknowledged himself to be the President of Darien Financial Services, Inc., a corporation, that he as such President, 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 President.
In witness whereof I hereunto set my hand.
________/s/_________
Commissioner of the Superior Court