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IN THE MATTER OF: PRECISION FUNDING ("Precision Funding Group") |
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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, Precision Funding Group is a New Jersey limited liability company that is currently licensed as a mortgage lender under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
WHEREAS, on April 7, 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 Precision Funding Group 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 Precision Funding Group employed or retained, during the period of December 16, 2008 through December 16, 2010, fifteen (15) individuals as mortgage loan originators without licensing them, in violation of Section 36a-486(b) of the then applicable Connecticut General Statutes;
WHEREAS, the Commissioner believes that such allegation would support initiation of enforcement proceedings against Precision Funding Group, including proceedings to revoke Precision Funding Group’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 Precision Funding Group 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 Precision Funding Group 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 Precision Funding Group acknowledge the possible consequences of formal administrative proceedings;
WHEREAS, Precision Funding Group 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, notwithstanding the foregoing, Precision Funding Group acknowledges that this Settlement Agreement is a public record and constitutes, for the limited purposes of satisfying Precision Funding Group’s disclosure obligations on its MU1, MU2 and MU4 Forms on the Nationwide Mortgage Licensing System, as applicable to Precision Funding Group, a finding by the Commissioner that Precision Funding Group has been involved in a violation of a financial services-related regulation or statute;
WHEREAS, Precision Funding Group herein represents to the Commissioner that the individuals alleged to be unlicensed mortgage loan originators, in violation of Section 36a-486(b) of the then applicable Connecticut General Statutes, during the period of December 16, 2008 through December 16, 2010, 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 no longer engaged in any mortgage-related activity with Precision Funding Group that would prohibit Precision Funding Group from engaging the services of such individuals without licensure as mortgage loan originators under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
WHEREAS, Precision Funding Group 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 Precision Funding Group requires licensure from the Commissioner under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
AND WHEREAS, Precision Funding Group, 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 Precision Funding Group enter into this Settlement Agreement as follows:
| 1. | No later than the date this Settlement Agreement is executed by Precision Funding Group, Precision Funding Group 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 Fifteen Thousand Dollars ($15,000) 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 Precision Funding Group 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 Precision Funding Group based on the allegation contained herein if any representations made by Precision Funding Group in this Settlement Agreement are subsequently discovered to be untrue or if Precision Funding Group 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 Precision Funding Group 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 Precision Funding Group to enforce this Settlement Agreement if the Commissioner determines that Precision Funding Group 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 14th day of February 2011. ________/s/_________
Howard F. Pitkin
Banking Commissioner
I, Mark Furey, state on behalf of Precision Funding Group, 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 Precision Funding Group, LLC; that Precision Funding Group LLC, agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that Precision Funding Group, LLC, voluntarily agrees to enter into this Settlement Agreement, expressly waiving any right to a hearing on the matters described herein.
By: ________/s/_________
Name: Mark Furey
Title: COO
Precision Funding Group, LLC
State of: New Jersey
County of: Camden
On this the 2 day of February 2011, before me, Ryan J. Geiger, the undersigned officer, personally appeared Mark Furey who acknowledged himself to be the C.O.O. of Precision Funding Group, LLC, a member managed/manager managed limited liability company that he as such C.O.O., 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 C.O.O.
In witness whereof I hereunto set my hand.
________/s/_________
Notary Public
Date Commission Expires: 1/18/2013