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IN THE MATTER OF: INDIVIDUAL FINANCING ("Individual Financing Solutions") |
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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, Individual Financing Solutions is a Connecticut limited liability company 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 September 22, 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 Individual Financing Solutions 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 Individual Financing Solutions acted as a mortgage broker, during the period of January through August 2008, from an unlicensed location, in violation of Section 36a-490 of the then applicable Connecticut General Statutes;
WHEREAS, the Commissioner believes that such allegations would support initiation of enforcement proceedings against Individual Financing Solutions, including proceedings to revoke the license of Individual Financing Solutions 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 Individual Financing Solutions 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 Individual Financing Solutions 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 Individual Financing Solutions acknowledge the possible consequences of formal administrative proceedings;
WHEREAS, Individual Financing Solutions 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 allegations described above;
WHEREAS, Individual Financing Solutions herein represents to the Commissioner that it is no longer acting as a mortgage broker from any location that is not licensed under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
WHEREAS, Individual Financing Solutions herein represents to the Commissioner that it has reviewed and updated its internal policies, procedures and controls for assessing whether a location from which Individual Financing Solutions acts as a mortgage broker requires licensure from the Commissioner under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
AND WHEREAS, Individual Financing Solutions, 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 Individual Financing Solutions enter into this Settlement Agreement as follows:
| 1. | No later than the date this Settlement Agreement is executed by Individual Financing Solutions, Individual Financing Solutions 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 Three Thousand Dollars ($3,000) 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 Individual Financing Solutions 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 Individual Financing Solutions based on the allegations contained herein if any representations made by Individual Financing Solutions in this Settlement Agreement are subsequently discovered to be untrue or if Individual Financing Solutions 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 Individual Financing Solutions 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; |
| 4. | Notwithstanding paragraph 2 herein, execution of this Settlement Agreement is without prejudice to the right of the Commissioner to take enforcement action against Individual Financing Solutions to enforce this Settlement Agreement if the Commissioner determines that Individual Financing Solutions 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 August 2010.
________/s/_________
Howard F. Pitkin
Banking Commissioner
I, Matthew Jenness, state on behalf of Individual Financing Solutions, 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 Individual Financing Solutions, LLC; that Individual Financing Solutions, LLC agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that Individual Financing Solutions, LLC voluntarily agrees to enter into this Settlement Agreement, expressly waiving any right to a hearing on the matters described herein.
By: ________/s/_________
Name: Matthew Jenness
Title: Member
Individual Financing Solutions, LLC
State of: Connecticut
County of: Fairfield
On this the 18th day of August 2010, before me, Heather Ann Persichilli, the undersigned officer, personally appeared Matthew Jenness who acknowledged himself to be the Member of Individual Financing Solutions, LLC, a limited liability company, that he as such Member, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself as Member.
In witness whereof I hereunto set my hand.
________/s/_________
Notary Public
Date Commission Expires: June 30, 2013