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IN THE MATTER OF: FAIRGROUND MORTGAGE ("Fairground Mortgage") |
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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, Fairground Mortgage is a Connecticut corporation that was licensed from January 28, 1999 through July 22, 2010, as a mortgage broker under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
WHEREAS, on April 29, 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 Fairground 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;
WHEREAS, as a result of such examination, the Commissioner alleges that Fairground Mortgage employed or retained, during the period of January 26, 2009 through February 16, 2009, one (1) individual as a mortgage loan originator without licensing such individual, in violation of Section 36a-486(b) of the Connecticut General Statutes;
WHEREAS, the Commissioner believes that such allegation would support initiation of enforcement proceedings against Fairground Mortgage, including proceedings to revoke Fairground Mortgage’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 Fairground Mortgage 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 Fairground Mortgage 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 Fairground Mortgage acknowledge the possible consequences of formal administrative proceedings;
WHEREAS, Fairground Mortgage voluntarily agrees to enter into this Settlement Agreement without admitting or denying any allegation set forth herein, and solely for the purposes of obviating the need for formal administrative proceedings concerning the allegations described above;
WHEREAS, Fairground Mortgage herein represents to the Commissioner that the individual alleged to be an unlicensed mortgage loan originator in violation of Section 36a-486(b) of the Connecticut General Statutes during the period of January 26, 2009 through February 16, 2009, is no longer engaged in any mortgage-related activity with Fairground Mortgage that would prohibit Fairground Mortgage from engaging the services of such individual without licensure as a mortgage loan originator under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
WHEREAS, Fairground Mortgage 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 Fairground Mortgage requires licensure from the Commissioner under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
AND WHEREAS, Fairground Mortgage, through its execution of this Settlement Agreement, voluntarily agrees to waive any rights to a hearing upon the allegation 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 Fairground Mortgage enter into this Settlement Agreement as follows:
| 1. | No later than the date this Settlement Agreement is executed by Fairground Mortgage, Fairground Mortgage 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 Fairground Mortgage based upon the allegation contained herein; provided that entry of this Settlement Agreement is without prejudice to the right of the Commissioner to take enforcement action against Fairground Mortgage based on the allegation contained herein if any representations made by Fairground Mortgage in this Settlement Agreement are subsequently discovered to be untrue or if Fairground Mortgage 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 Fairground Mortgage 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 Fairground Mortgage to enforce this Settlement Agreement if the Commissioner determines that Fairground Mortgage 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 13th day of September 2010. ________/s/_________
Howard F. Pitkin
Banking Commissioner
I, Kirk A. Hagert, state on behalf of Fairground Mortgage Company, 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 Fairground Mortgage Company, Inc.; that Fairground Mortgage Company, Inc., agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that Fairground Mortgage Company, Inc., voluntarily agrees to enter into this Settlement Agreement, expressly waiving any right to a hearing on the matters described herein.
By: ________/s/___________________
Name: Kirk A. Hagert
Title: President
Fairground Mortgage Company, Inc.
State of: CT
County of: Hartford
On this the 31st day of August 2010, before me, Gail Strong, the undersigned officer, personally appeared Kirk A. Hagert who acknowledged himself to be the President of Fairground Mortgage Company, 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 corporation by himself as President.
In witness whereof I hereunto set my hand.
________/s/_________
Notary Public
Date Commission Expires: Apr. 30, 2012