| * * * * * * * * * * * * * * * * * * * *
IN THE MATTER OF: GENTRY CAPITAL SERVICES, LLC ("Gentry Capital Services") |
* * * * * * * * * |
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, Gentry Capital Services is a Connecticut limited liability company that is licensed as a mortgage broker in Connecticut under Part I of Chapter 668, Sections 36a-485 et seq. of the Connecticut General Statutes;
WHEREAS, on July 30, 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 Gentry Capital 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 Gentry Capital Services employed or retained, during the period of January 2008 through February 2009, two (2) 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, as a result of such examination, the Commissioner also alleges that Gentry Capital Services received, during the period of February 2009 through June 2009, a “Co-Broker Fee” from another mortgage broker for two (2) loans in violation of 24 CFR 3500.14(b), which is a regulation applicable to the conduct of Gentry Capital Services’ business;
WHEREAS, the Commissioner believes that such allegations would support initiation of enforcement proceedings against Gentry Capital Services, including proceedings to revoke Gentry Capital Services’ 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 Gentry Capital 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 Gentry Capital 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 Gentry Capital Services acknowledge the possible consequences of formal administrative proceedings;
WHEREAS, Gentry Capital 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 conduct described above;
WHEREAS, Gentry Capital Services herein represents to the Commissioner that one of the individuals alleged to be an unregistered originator or unlicensed mortgage loan originator, during the period of January 2008 through February 2009, in violation of Sections 36a-486(b) and 36a-511(b) of then applicable Connecticut General Statutes, is currently licensed as mortgage loan originator with Gentry Capital Services and the other individual is no longer engaged in any mortgage-related activity with Gentry Capital Services that would require licensure from the Commissioner under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
WHEREAS, Gentry Capital 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 Gentry Capital Services requires licensure from the Commissioner under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
WHEREAS, in connection with this settlement, Gentry Capital Services was provided the option to pay a civil penalty in the amount of Seven Thousand Dollars ($7,000) in settlement of the allegations contained herein;
WHEREAS, the State of Connecticut is a participant in the Nationwide Mortgage Licensing System and Registry (“NMLS&R”), jointly developed by the Conference of State Bank Supervisors (“CSBS”) and the American Association of Residential Mortgage Regulators to establish a unified and modern system of mortgage licensing and registration, and is committed to the success of NMLS&R;
WHEREAS, in connection with this settlement, Gentry Capital Services was provided an alternative option to make a voluntary contribution in the amount of One Thousand Dollars ($1,000) to the State Regulatory Registry LLC (“SRR”), a wholly-owned subsidiary of CSBS, to support NMLS&R, and to pay a civil penalty in the amount of Six Thousand Dollars ($6,000);
WHEREAS, Gentry Capital Services elected to make a voluntary contribution to SRR in the amount of One Thousand Dollars ($1,000), and to pay a civil penalty in the amount of Six Thousand Dollars ($6,000);
AND WHEREAS, Gentry Capital 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 Gentry Capital Services enter into this Settlement Agreement as follows:
| 1. | No later than the date this Settlement Agreement is executed by Gentry Capital Services, Gentry Capital Services shall make a voluntary contribution by cashier’s check, certified check or money order in the amount of One Thousand Dollars ($1,000) to SRR to support NMLS&R; |
| 2. | No later than the date this Settlement Agreement is executed by Gentry Capital Services, Gentry Capital 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 Six Thousand Dollars ($6,000) as a civil penalty; |
| 3. | Upon entry of this Settlement Agreement, this matter will be resolved and the Commissioner will not take any future enforcement action against Gentry Capital 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 Gentry Capital Services based on the allegations contained herein if any representations made by Gentry Capital Services in this Settlement Agreement are subsequently discovered to be untrue or if Gentry Capital Services is not fully complying with any term or condition stated herein; |
| 4. | Nothing in the entry of this Settlement Agreement shall adversely affect the ability of Gentry Capital 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; |
| 5. | Notwithstanding paragraph 3 herein, execution of this Settlement Agreement is without prejudice to the right of the Commissioner to take enforcement action against Gentry Capital Services to enforce this Settlement Agreement if the Commissioner determines that Gentry Capital 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 9th day of February 2010. ________/s/_________
Howard F. Pitkin
Banking Commissioner
I, Kevin Gentry, state on behalf of Gentry Capital Services, 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 Gentry Capital Services, LLC; that Gentry Capital Services, LLC agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that Gentry Capital Services, LLC voluntarily agrees to enter into this Settlement Agreement, expressly waiving any right to a hearing on the matters described herein.
By: ________/s/_________
Name: Kevin Gentry
Title: Principal
State of: Connecticut
County of: Fairfield
On this the 1st day of February 2010, before me, Marybeth K. Darcy, the undersigned officer, personally appeared Kevin Gentry who acknowledged himself to be the Principal of Gentry Capital Services, LLC, a member managed/manager managed limited liability company that he, as such Principal, 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 Principal.
In witness whereof I hereunto set my hand.
________/s/_________
Notary Public
Date Commission Expires: Mar. 31, 2011