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IN THE MATTER OF: SHOREPOINT MORTGAGE, LLC ("Shorepoint 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, the Commissioner, through the Consumer Credit Division of the Department of Banking, conducted an investigation pursuant to Section 36a-17 of the Connecticut General Statutes into the activities of Shorepoint 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 June 7, 2010, the Commissioner, acting pursuant to Section 36a-494(b) of the 2010 Supplement to the General Statutes and Sections 36a-52(a) and 36a-50(a) of the Connecticut General Statutes, issued a 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 Shorepoint Mortgage, which Notice is incorporated herein by reference;
WHEREAS, the Notice alleged that Shorepoint Mortgage acted as a mortgage broker in Connecticut at or from two (2) locations that were not licensed, in violation of Section 36a-486(a) of the 2008 Supplement to the General Statutes, as amended by Public Acts 07-156 and 08-176;
WHEREAS, the Notice also alleged that Shorepoint Mortgage failed to comply with a Settlement Agreement it had entered into with the Commissioner on January 10, 2007, in which Shorepoint Mortgage agreed not to act as a first or secondary mortgage broker in Connecticut without obtaining a license for each location where the business is to be conducted as required by the then applicable Connecticut General Statutes;
WHEREAS, the Notice further alleged that Shorepoint Mortgage employed or retained three (3) 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, on June 10, 2010, Shorepoint Mortgage received the Notice;
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, on January 1, 2010, Shorepoint Mortgage’s mortgage broker license terminated due to its failure to renew such license;
WHEREAS, Shorepoint Mortgage represents that it has not conducted any business in Connecticut since January 1, 2010;
WHEREAS, Shorepoint Mortgage voluntarily agrees to enter into this Settlement Agreement without admitting or denying any allegations contained in the Notice and set forth herein, and solely for the purpose of obviating the need for formal administrative proceedings concerning the allegations contained in the Notice and this Settlement Agreement;
WHEREAS, Shorepoint Mortgage specifically assures the Commissioner that the violations described herein shall not occur in the future;
AND WHEREAS, Shorepoint Mortgage, through its execution of this Settlement Agreement, voluntarily agrees to waive any rights to a hearing upon the allegations contained in the Notice and this Settlement Agreement, and waive the right to seek judicial review or otherwise challenge or contest the validity of this Settlement Agreement.
NOW THEREFORE, the Commissioner and Shorepoint Mortgage enter into this Settlement Agreement as follows:
| 1. | No later than the date this Settlement Agreement is executed by Shorepoint Mortgage, Shorepoint 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 Five Hundred Dollars ($500) as investigative costs; |
| 2. | Upon entry of this Settlement Agreement, this matter will be resolved and the Commissioner will not take any future enforcement action against Shorepoint Mortgage 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 Shorepoint Mortgage based on the allegations contained herein if any representations made by Shorepoint Mortgage in this Settlement Agreement are subsequently discovered to be untrue or if Shorepoint 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 Shorepoint 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 Shorepoint Mortgage to enforce this Settlement Agreement if the Commissioner determines that Shorepoint 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 2nd day of November 2010. ________/s/_________
Howard F. Pitkin
Banking Commissioner
I, Daniel Shepro, state on behalf of Shorepoint Mortgage, LLC d/b/a Shore Pointe Mortgage, 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 Shorepoint Mortgage, LLC d/b/a Shore Pointe Mortgage; and that Shorepoint Mortgage, LLC d/b/a Shore Pointe Mortgage agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein.
By: ________/s/_________
Name: Daniel Shepro
Title: Member
Shorepoint Mortgage, LLC
d/b/a Shore Pointe Mortgage
State of: Connecticut
County of: Fairfield
On this the 28th day of October 2010, before me, Staci Johnson, the undersigned officer, personally appeared Daniel Shepro, who acknowledged himself to be the Member of Shorepoint Mortgage, LLC d/b/a Shore Pointe Mortgage, a member managed/manager managed limited liability company, and 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 limited liability company by himself as Member.
In witness whereof I hereunto set my hand.
________/s/_________
Notary Public
Date Commission Expires: Mar. 31, 2014