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 (“Division”), conducted an investigation pursuant to Section 36a-17 of the Connecticut General Statutes into the activities of Settlers 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, on December 13, 2011, the Commissioner, acting pursuant to Sections 36a-494(a)(1)(C) and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, issued a Notice of Intent to Suspend Mortgage Broker License and Notice of Right to Hearing (collectively “Notice”) against Settlers Mortgage, which Notice is incorporated herein by reference;

WHEREAS, the Notice alleged that Settlers Mortgage failed to pay the cost of an examination conducted by the Division in violation of Section 36a-65(c)(6) of the Connecticut General Statutes, as amended by Public Act 11-216.  Such violation constitutes sufficient grounds for the Commissioner to suspend Settlers Mortgage’s mortgage broker license in Connecticut pursuant to Section 36a-494(a)(1)(C) and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes;

WHEREAS, on December 13, 2011, the Notice was sent to Settlers Mortgage by registered mail, return receipt requested (Registered Mail No. RA878574750US);

WHEREAS, on December 14, 2011, Settlers Mortgage received the Notice and requested a hearing on December 20, 2011, which hearing is currently scheduled for January 10, 2012;

WHEREAS, on December 15, 2011, Settlers Mortgage made a partial payment of the cost of the examination conducted by the Division;

WHEREAS, on January 6, 2012, Settlers Mortgage paid the balance of the cost of the examination conducted by the Division;

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 consent order, unless precluded by law;

WHEREAS, the Commissioner and Settlers Mortgage now desire to resolve the matter alleged in the Notice and set forth herein;

WHEREAS, Settlers Mortgage voluntarily agrees to consent to the entry of the sanction described below without admitting or denying any allegation contained in the Notice and set forth herein and solely for the purpose of obviating the need for further formal administrative proceedings concerning the allegation contained in the Notice and set forth herein;

WHEREAS, Settlers Mortgage agrees that the Notice may be used in construing the terms of this Consent Order and agrees to the language of this Consent Order;

WHEREAS, Settlers Mortgage, through its execution of this Consent Order, voluntarily agrees to waive its procedural rights, including a right to a hearing as it pertains to the allegation contained in the Notice and set forth herein, and voluntarily waives the right to seek judicial review or otherwise challenge or contest the validity of this Consent Order;

AND WHEREAS, Settlers Mortgage specifically assures the Commissioner that the violation alleged in the Notice and set forth herein shall not occur in the future.

CONSENT TO ENTRY OF SANCTION

WHEREAS, Settlers Mortgage, through its execution of this Consent Order, consents to the Commissioner’s entry of a Consent Order imposing the following sanction:

CONSENT ORDER

NOW THEREFORE, the Commissioner enters the following:

Dated at Hartford, Connecticut
this 27th day of January 2012.            ________/s/_________
                                                     Howard F. Pitkin
                                                     Banking Commissioner

I, ___________________________, state on behalf of Settlers Mortgage Company, LLC, that I have read the foregoing Consent Order; that I know and fully understand its contents; that I am authorized to execute this consent to entry of order on behalf of Settlers Mortgage Company, LLC; that Settlers Mortgage Company, LLC agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that Settlers Mortgage Company, LLC consents to the issuance of this Consent Order, expressly waiving any right to a hearing on the matters described herein.                                            

                                            By:  ________/s/_________
                                                   Name:  Michael L. Stephan
                                                   Title:  President
                                                   Settlers Mortgage Company, LLC

                                                   

State of:  Connecticut

County of:  Fairfield

On this the 20 day of January 2012, before me, Ruth M. Cavayero, the undersigned officer, personally appeared Michael L. Stephan, who acknowledged himself/herself to be the President of Settlers Mortgage Company, LLC, a member-managed/manager-managed limited liability company, and that he/she, as such Michael L. Stephan, being authorized to do so, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself/herself as President.

In witness whereof I hereunto set my hand.

Administrative Orders and Settlements