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IN THE MATTER OF: EAGLE MORTGAGE GROUP, LLC ("Eagle Mortgage Group") |
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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”;
WHEREAS, Eagle Mortgage Group is a Connecticut limited liability company that is licensed as a mortgage broker under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
WHEREAS, on January 20, 2009, Eagle Mortgage Group entered into a Settlement Agreement with the Commissioner to resolve allegations that Eagle Mortgage Group employed or retained three (3) individuals as loan originators without registering them, in violation of Sections 36a-486(b) and 36a-511(b) of the then applicable Connecticut General Statutes;
WHEREAS, in connection with such Settlement Agreement, Eagle Mortgage Group represented that it had reviewed and updated its internal policies, procedures and controls for assessing whether an individual engaged in mortgage-related activity with Eagle Mortgage Group required licensure from the Commissioner under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
WHEREAS, on March 12, 2010, 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 Eagle Mortgage Group 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 Eagle Mortgage Group employed or retained, during the period of May 2, 2008 through June 1, 2009, three (3) individuals as originators or mortgage loan originators without registering or licensing them, in violation of Sections 36a-486(b) and 36a-511(b) of the then applicable Connecticut General Statutes;
WHEREAS, the Commissioner believes that such allegations would support initiation of enforcement proceedings against Eagle Mortgage Group, including proceedings to revoke Eagle Mortgage Group’s license pursuant to Section 36a-494(a) and subsections (a) and (b) of Section 36a-51 of the 2010 Supplement to the General Statutes, issue a cease and desist order against Eagle Mortgage Group pursuant to Section 36a-494(b) of the 2010 Supplement to the General Statutes 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 Eagle Mortgage Group pursuant to Section 36a-494(b) of the 2010 Supplement to the General Statutes 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 Eagle Mortgage Group acknowledge the possible consequences of formal administrative proceedings;
WHEREAS, Eagle Mortgage Group voluntarily agrees to enter into this Settlement Agreement without admitting or denying any allegations set forth herein, and solely for the purpose of obviating the need for formal administrative proceedings concerning the allegations described above;
WHEREAS, Eagle Mortgage Group herein represents to the Commissioner that the three (3) individuals alleged to be unregistered originators or unlicensed mortgage loan originators in violation of Sections 36a-486(b) and 36a-511(b) of the then applicable Connecticut General Statutes, during the period of May 2, 2008 through June 1, 2009, are no longer engaged in any mortgage-related activity with Eagle Mortgage Group that would prohibit Eagle Mortgage Group from engaging the services of such individuals without licensure as mortgage loan originators under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
WHEREAS, Eagle Mortgage Group specifically assures the Commissioner that the violation described herein shall not occur in the future;
AND WHEREAS, Eagle Mortgage Group, 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 Eagle Mortgage Group enter into this Settlement Agreement as follows:
| 1. | No later than the date this Settlement Agreement is executed by Eagle Mortgage Group, Eagle Mortgage Group 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 Six Thousand Dollars ($6,000) 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 Eagle Mortgage Group 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 Eagle Mortgage Group based on the allegations contained herein if any representations made by Eagle Mortgage Group in this Settlement Agreement are subsequently discovered to be untrue or if Eagle Mortgage Group 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 Eagle Mortgage Group 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 for its mortgage loan originators to apply for or obtain licensure 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 Eagle Mortgage Group to enforce this Settlement Agreement if the Commissioner determines that Eagle Mortgage Group 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 30th day of September 2010. ________/s/_________
Howard F. Pitkin
Banking Commissioner
I, Ian Williams, state on behalf of Eagle Mortgage Group, 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 Eagle Mortgage Group, LLC; that Eagle Mortgage Group, LLC agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that Eagle Mortgage Group, LLC voluntarily agrees to enter into this Settlement Agreement, expressly waiving any right to a hearing on the matters described herein.
By: ________/s/___________________
Name: Ian Williams
Title: Managing Member
Eagle Mortgage Group, LLC
State of: CT
County of: New Haven
On this the 23rd day of September 2010, before me, Deborah Moxam, the undersigned officer, personally appeared Ian Williams who acknowledged himself to be the Managing Member of Eagle Mortgage Group, LLC, a limited liability company, that he as such Managing Member, 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 Managing Member.
In witness whereof I hereunto set my hand.
________/s/_________
Notary Public
Date Commission Expires: June 30, 2015