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IN THE MATTER OF: INDEPENDENT MORTGAGE ("Independent 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, Independent Mortgage is a Connecticut corporation that is currently licensed as a mortgage broker under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
WHEREAS, on July 26, 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 Independent 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 Independent Mortgage employed or retained, during the period of May 18 through October 2, 2008, 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, the Commissioner believes that such allegation would support initiation of enforcement proceedings against Independent Mortgage, including proceedings to revoke Independent 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 Independent 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 Independent 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 Independent Mortgage acknowledge the possible consequences of formal administrative proceedings;
WHEREAS, Independent 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 allegation described above;
WHEREAS, Independent Mortgage herein represents to the Commissioner that the 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 18 through October 2, 2008, are either currently licensed as mortgage loan originators under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes or are no longer engaged in any mortgage-related activity with Independent Mortgage that would prohibit Independent Mortgage from engaging the services of such individuals without licensure as a mortgage loan originator under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
WHEREAS, Independent 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 Independent Mortgage requires licensure from the Commissioner under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
AND WHEREAS, Independent 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 Independent Mortgage enter into this Settlement Agreement as follows:
| 1. | No later than the date this Settlement Agreement is executed by Independent Mortgage, Independent 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 Two Thousand Dollars ($2,000) 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 Independent 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 Independent Mortgage based on the allegation contained herein if any representations made by Independent Mortgage in this Settlement Agreement are subsequently discovered to be untrue or if Independent 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 Independent 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 Independent Mortgage to enforce this Settlement Agreement if the Commissioner determines that Independent 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 16th day of December 2010. ________/s/_________
Howard F. Pitkin
Banking Commissioner
I, Eugene J. Fabbri, state on behalf of Independent 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 Independent Mortgage Company, Inc.; that Independent Mortgage Company, Inc., agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that Independent 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:
Title: President
Independent Mortgage Company, Inc.
State of: Connecticut
County of: Fairfield
On this the 10th day of December 2010, before me, Joseph J. Choinski, the undersigned officer, personally appeared Eugene J. Fabbri who acknowledged herself to be the President of Independent 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: Aug. 31, 2014