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IN THE MATTER OF: MORTGAGE STORE OF ("Respondent") * * * * * * * * * * * * * * * * * * * |
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ORDER REVOKING AND REFUSING TO ORDER TO CEASE AND DESIST AND ORDER IMPOSING CIVIL PENALTY |
I. PRELIMINARY STATEMENT
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 Sections 36a-17 and 36a-498f 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 January 9, 2012, the Commissioner, acting pursuant to Sections 36a-494(a)(1) and 36a-494(a)(1)(C), subsections (a) and (b) of Section 36a-51, Sections 36a-494(b), 36a-52(a) and 36a-50(a) of the Connecticut General Statutes, issued a Notice of Intent to Revoke and Refuse to Renew Mortgage Broker 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 January 10, 2012, the Notice was sent by certified mail, return receipt requested, to Respondent (Certified Mail No. 70112000000247358024);
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 Respondent’s license to act as a mortgage broker in Connecticut, an order refusing to renew Respondent’s license to act as a mortgage broker in Connecticut, which shall cause such license to expire, and an order that Respondent cease and desist from violating Section 36a-486(b) of the then applicable Connecticut General Statutes and Section 36a-53a of the Connecticut General Statutes; and may order that a civil penalty not to exceed One Hundred Thousand Dollars ($100,000) per violation be imposed upon Respondent;
WHEREAS, on January 11, 2012, Respondent received the Notice and no request for a hearing has been received by the Commissioner;
WHEREAS, the Commissioner alleged in the Notice, with respect to the activity described therein, that Respondent’s employing or retaining three (3) individuals who were not registered as originators or licensed as mortgage loan originators, constitutes three (3) violations of Section 36a-486(b) of the then applicable Connecticut General Statutes. Such violations constitute sufficient grounds for the Commissioner to revoke and refuse to renew Respondent’s license to act as a mortgage broker in Connecticut pursuant to Sections 36a-494(a)(1) and 36a-494(a)(1)(C) and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes. Such violations also form a basis to issue an order to cease and desist against Respondent pursuant to Sections 36a-494(b) and 36a-52(a) of the Connecticut General Statutes and to impose a civil penalty pursuant to Sections 36a-494(b) and 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 have at its main office a qualified individual, constitutes sufficient grounds for the Commissioner to deny an application for a mortgage broker license under Section 36a-488(a)(1)(B) of the Connecticut General Statutes, which constitutes sufficient grounds for the Commissioner to revoke and refuse to renew Respondent’s license to act as a mortgage broker in Connecticut pursuant to Section 36a-494(a)(1) and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes. Such failure to have a qualified individual also causes Respondent to fail to meet minimum standards for renewal under Section 36a-489(a)(2)(A) of the Connecticut General Statutes, as amended by Public Act 11-216, which shall cause such license to expire;
WHEREAS, the Commissioner additionally alleged in the Notice, with respect to the activity described therein, that Respondent’s “no” response to Question 29.a) on its Uniform Manager’s Questionnaire dated August 22, 2011, constitutes the making or causing to be made in a document filed with the Commissioner a statement which is, at the time and in the light of the circumstance under which it is made, false and misleading in a material respect, in violation of Section 36a-53a of the Connecticut General Statutes. Such violation constitutes sufficient grounds for the Commissioner to revoke and refuse to renew Respondent’s license to act as a mortgage broker in Connecticut pursuant to Sections 36a-494(a)(1) and 36a-494(a)(1)(C) and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes. Such violation also forms a basis to issue an order to cease and desist against Respondent pursuant to Sections 36a-494(b) and 36a-52(a) of the Connecticut General Statutes and to impose a civil penalty pursuant to Sections 36a-494(b) and 36a-50(a) of the Connecticut General Statutes;
WHEREAS, Section 36a-51(b) of the Connecticut General Statutes provides, in pertinent part, that “[i]f the licensee does not request a hearing within the time specified in the notice . . . , 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 . . . , 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 . . . the commissioner may . . . 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”.
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 Sections 36a-17 and 36a-498f 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 January 9, 2012, the Commissioner, acting pursuant to Sections 36a-494(a)(1) and 36a-494(a)(1)(C), subsections (a) and (b) of Section 36a-51, Sections 36a-494(b), 36a-52(a) and 36a-50(a) of the Connecticut General Statutes, issued a Notice of Intent to Revoke and Refuse to Renew Mortgage Broker 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 January 10, 2012, the Notice was sent by certified mail, return receipt requested, to Respondent (Certified Mail No. 70112000000247358024);
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 Respondent’s license to act as a mortgage broker in Connecticut, an order refusing to renew Respondent’s license to act as a mortgage broker in Connecticut, which shall cause such license to expire, and an order that Respondent cease and desist from violating Section 36a-486(b) of the then applicable Connecticut General Statutes and Section 36a-53a of the Connecticut General Statutes; and may order that a civil penalty not to exceed One Hundred Thousand Dollars ($100,000) per violation be imposed upon Respondent;
WHEREAS, on January 11, 2012, Respondent received the Notice and no request for a hearing has been received by the Commissioner;
WHEREAS, the Commissioner alleged in the Notice, with respect to the activity described therein, that Respondent’s employing or retaining three (3) individuals who were not registered as originators or licensed as mortgage loan originators, constitutes three (3) violations of Section 36a-486(b) of the then applicable Connecticut General Statutes. Such violations constitute sufficient grounds for the Commissioner to revoke and refuse to renew Respondent’s license to act as a mortgage broker in Connecticut pursuant to Sections 36a-494(a)(1) and 36a-494(a)(1)(C) and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes. Such violations also form a basis to issue an order to cease and desist against Respondent pursuant to Sections 36a-494(b) and 36a-52(a) of the Connecticut General Statutes and to impose a civil penalty pursuant to Sections 36a-494(b) and 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 have at its main office a qualified individual, constitutes sufficient grounds for the Commissioner to deny an application for a mortgage broker license under Section 36a-488(a)(1)(B) of the Connecticut General Statutes, which constitutes sufficient grounds for the Commissioner to revoke and refuse to renew Respondent’s license to act as a mortgage broker in Connecticut pursuant to Section 36a-494(a)(1) and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes. Such failure to have a qualified individual also causes Respondent to fail to meet minimum standards for renewal under Section 36a-489(a)(2)(A) of the Connecticut General Statutes, as amended by Public Act 11-216, which shall cause such license to expire;
WHEREAS, the Commissioner additionally alleged in the Notice, with respect to the activity described therein, that Respondent’s “no” response to Question 29.a) on its Uniform Manager’s Questionnaire dated August 22, 2011, constitutes the making or causing to be made in a document filed with the Commissioner a statement which is, at the time and in the light of the circumstance under which it is made, false and misleading in a material respect, in violation of Section 36a-53a of the Connecticut General Statutes. Such violation constitutes sufficient grounds for the Commissioner to revoke and refuse to renew Respondent’s license to act as a mortgage broker in Connecticut pursuant to Sections 36a-494(a)(1) and 36a-494(a)(1)(C) and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes. Such violation also forms a basis to issue an order to cease and desist against Respondent pursuant to Sections 36a-494(b) and 36a-52(a) of the Connecticut General Statutes and to impose a civil penalty pursuant to Sections 36a-494(b) and 36a-50(a) of the Connecticut General Statutes;
WHEREAS, Section 36a-51(b) of the Connecticut General Statutes provides, in pertinent part, that “[i]f the licensee does not request a hearing within the time specified in the notice . . . , 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 . . . , 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 . . . the commissioner may . . . 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”.
II. FINDINGS OF FACT AND CONCLUSIONS OF LAW
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The Commissioner finds that the matters asserted, as set forth in paragraphs 1 through 7, inclusive, of Section II of the Notice shall constitute findings of fact within the meaning of Section 4-180(c) of the Connecticut General Statutes, and that the conclusions as set forth in paragraphs 1 through 3, inclusive, of Section III of the Notice shall constitute conclusions of law within the meaning of Section 4-180(c) of the Connecticut General Statutes and Section 36a-1-52 of the Regulations of Connecticut State Agencies. |
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The Commissioner finds that Respondent has engaged in acts or conduct which, pursuant to Sections 36a-494(a)(1) and 36a-494(a)(1)(C) and subsections (a) and (b) of Section 36a-51 of the Connecticut, constitutes sufficient grounds to revoke and refuse to renew Respondent’s license to act as a mortgage broker in Connecticut. |
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The Commissioner finds that Respondent has engaged in acts or conduct which, pursuant to Sections 36a-494(b) and 36a-52(a) of the Connecticut General Statutes, forms the basis to issue an order to cease and desist against Respondent. |
| 4. | The Commissioner finds that Respondent has engaged in acts or conduct which, pursuant to Sections 36a-494(b) and 36a-50(a) of the Connecticut General Statutes, forms the basis to impose a civil penalty upon Respondent. |
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The Commissioner finds that the Notice was given in compliance with subsections (a) and (b) of Section 36a-51, and Sections 36a-52(a), 36a-50(a), 4-177 and 4-182(c) of the Connecticut General Statutes.
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III. ORDER
Having read the record, I HEREBY ORDER, pursuant to Sections 36a-494(a)(1) and 36a-494(a)(1)(C), subsections (a) and (b) of Section 36a-51 and Sections 36a-494(b), 36a-52(a) and 36a-50(a) of the Connecticut General Statutes, that:
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The license of Mortgage Store of Connecticut, LLC to act as a mortgage broker in Connecticut be and is hereby REVOKED; |
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The license of Mortgage Store of Connecticut, LLC to act as a mortgage broker in Connecticut NOT BE RENEWED, which causes such license to be deemed EXPIRED. |
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Mortgage Store of Connecticut, LLC CEASE AND DESIST from violating Section 36a-486(b) of the then applicable Connecticut General Statutes and Section 36a-53a of the Connecticut General Statutes; |
| 4. | A CIVIL PENALTY of Ten Thousand Dollars ($10,000) be imposed against Mortgage Store of Connecticut, LLC to be remitted to the Department of Banking by cashier’s check, certified check or money order, made payable to “Treasurer, State of Connecticut”, no later than thirty (30) days from the date this Order is mailed; and |
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This Order shall become effective when mailed.
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Dated at Hartford, Connecticut
this 14th day of February 2012. ________/s/_________
Howard F. Pitkin
Banking Commissioner
This order was mailed by certified mail,
return receipt requested, to Respondent
on February 15, 2012.
Mortgage Store of Connecticut, LLC Certified Mail No. 7011 0470 0002 2573 1710
Attn: Anthony J. Ranciato, President
3190 Whitney Avenue, Building 1
Hamden, Connecticut 06518