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, the Commissioner, through the Consumer Credit Division of the Department of Banking, conducted an investigation of the activities of Respondent, pursuant to the authority granted by Section 36a-17(a) of the Connecticut General Statutes, to determine if Respondent had violated, was violating or was about to violate the provisions of the Connecticut General Statutes within the jurisdiction of the Commissioner;

WHEREAS, on December 14, 2010, the Commissioner, acting pursuant to Section 36a-492(c) of the 2010 Supplement to the General Statutes, Section 36a-52(b) of the Connecticut General Statutes, Sections 36a-494(a)(1) and 36a-494(a)(1)(C), subsections (a) and (b) of Section 36a-51 and Section 36a-494(b) of the 2010 Supplement to the General Statutes, and Sections 36a-52(a) and 36a-50(a) of the Connecticut General Statutes, issued a Notice of Automatic Suspension, Temporary Order to Cease and Desist, Notice of Intent to Revoke and Refuse to Renew Mortgage Lender License, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (collectively “Notice”) against Respondent, which Notice is incorporated herein by reference;

WHEREAS, on December 15, 2010, the Notice was sent by registered mail, return receipt requested, to Respondent (Registered Mail No. RB028037473US);

WHEREAS, the Notice provided Respondent with the opportunity for a hearing and stated that if a hearing was not requested within 14 days of its receipt, the Commissioner would issue an order revoking and refusing to renew Respondent’s license to engage in the business of a mortgage lender in Connecticut from 198 Route 9 North, Suite 100, Manalapan, New Jersey (“Manalapan Office”), which order shall cause Respondent’s mortgage lender license in Connecticut to be deemed expired, issue an order that Respondent cease and desist from violating Section 36a-492 of the 2010 Supplement to the General Statutes, and may order that a civil penalty not to exceed Two Thousand Five Hundred Dollars ($2,500) be imposed upon Respondent;

WHEREAS, on December 28, 2010, the Notice was returned to the Department marked “Return to Sender – Moved Left No Address”;

WHEREAS, Section 36a-51(a) of the 2010 Supplement to the General Statutes provides, in pertinent part, that “[t]he notice shall be deemed received by the licensee on the earlier of the date of actual receipt or seven days after mailing or sending”;

WHEREAS, Section 36a-52(a) of the Connecticut General Statutes provides, in pertinent part, that “[t]he notice shall be deemed received by the person on the earlier of the date of actual receipt or seven days after mailing or sending”;

WHEREAS, Section 36a-50(a)(1) of the Connecticut General Statutes provides, in pertinent part, that “[t]he notice shall be deemed received by the person on the earlier of the date of actual receipt or seven days after mailing or sending”;

WHEREAS, Respondent failed to request a hearing within the prescribed time period;

WHEREAS, the Commissioner alleged in the Notice, with respect to the activity described therein, that Respondent’s failure to file the new form of surety bond in an appropriate amount with the Commissioner, as required by Section 36a-492 of the 2010 Supplement to the General Statutes, constitutes sufficient grounds for the Commissioner to deny an application for such license under Section 36a-489(a)(1)(D) of the 2010 Supplement to the General Statutes and constitutes a violation of Section 36a-492 of the 2010 Supplement to the General Statutes, both of which constitute grounds for the Commissioner to revoke and to refuse to renew Respondent’s license to engage in the business of a mortgage lender in Connecticut from the Manalapan Office pursuant to Sections 36a-494(a)(1) and 36a-494(a)(1)(C) and subsections (a) and (b) of Section 36a-51 of the 2010 Supplement to the General Statutes.  Such violation also forms a basis to issue an order to cease and desist against Respondent 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 to impose a civil penalty 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, the Commissioner also alleged in the Notice, with respect to the activity described therein, that Respondent’s failure to maintain a surety bond that runs concurrently with the period of its mortgage lender license constitutes sufficient grounds for the Commissioner to deny an application for such license under Section 36a-489(a)(1)(D) of the 2010 Supplement to the General Statutes and constitutes a violation of Section 36a-492 of the 2010 Supplement to the General Statutes, both of which constitute sufficient grounds for the Commissioner to revoke and to refuse to renew Respondent’s license to engage in the business of a mortgage lender in Connecticut from the Manalapan Office pursuant to Sections 36a-494(a)(1) and 36a-494(a)(1)(C) and subsections (a) and (b) of Section 36a-51 of the 2010 Supplement to the General Statutes.  Such violation also forms a basis to issue an order to cease and desist against Respondent 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 causes Respondent to fail to meet minimum standards for renewal under Section 36a-489(a)(2)(A) of the 2010 Supplement to the General Statutes, which shall cause such license to expire;

WHEREAS, Section 36a-51(b) of the 2010 Supplement to the General Statutes provides, in pertinent part, that “[i]f the licensee does not request a hearing within the time specified in the notice or fails to appear at the hearing, the commissioner shall . . . revoke or refuse to renew the license.  No such license shall be . . . revoked except in accordance with the provisions of chapter 54”;

WHEREAS, Section 36a-52(a) of the Connecticut General Statutes provides, in pertinent part, that “[i]f the person does not request a hearing within the time specified in the notice or fails to appear at the hearing, the commissioner shall issue an order to cease and desist against the person.  No such order shall be issued except in accordance with the provisions of chapter 54”;

WHEREAS, Section 36a-50(a)(2) of the Connecticut General Statutes provides, in pertinent part, that “[i]f such person does not request a hearing within the time specified in the notice or fails to appear at the hearing, the commissioner may, as the facts require, order that a civil penalty not exceeding one hundred thousand dollars per violation be imposed upon such person”;

WHEREAS, Section 36a-50(a)(3) of the Connecticut General Statutes provides, in pertinent part, that “[e]ach action undertaken by the commissioner under this subsection shall be in accordance with the provisions of chapter 54”;

AND WHEREAS, Section 36a-1-31(a) of the Regulations of Connecticut State Agencies provides, in pertinent part, that “[w]hen a party fails to request a hearing within the time specified in the notice, the allegations against the party may be deemed admitted.  Without further proceedings or notice to the party, the commissioner shall issue a final decision in accordance with section 4-180 of the Connecticut General Statutes and section 36a-1-52 of the Regulations of Connecticut State Agencies”.

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