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IN THE MATTER OF: UNITED CAPITAL LENDERS LLC ("United Capital Lenders") |
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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, United Capital Lenders is a Pennsylvania limited liability company that is licensed as a mortgage correspondent lender under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
WHEREAS, on March 15, 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 United Capital Lenders 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 United Capital Lenders employed or retained, during the period of March 25 through May 12, 2009, two (2) individuals as mortgage loan originators without licensing them, in violation of Section 36a-486(b) of the Connecticut General Statutes;
WHEREAS, the Commissioner believes that such allegation would support initiation of enforcement proceedings against United Capital Lenders, including proceedings to revoke United Capital Lenders’ 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 United Capital Lenders 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 United Capital Lenders 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 United Capital Lenders acknowledge the possible consequences of formal administrative proceedings;
WHEREAS, United Capital Lenders agrees to voluntarily 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, United Capital Lenders herein represents to the Commissioner that the individuals alleged to be unlicensed mortgage loan originators in violation of Section 36a-486(b) of the Connecticut General Statutes, during the period of March 25 through May 12, 2009, are currently licensed as mortgage loan originators in other states and are no longer engaged in any mortgage-related activity with United Capital Lenders in Connecticut that would prohibit United Capital Lenders 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, United Capital Lenders 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 United Capital Lenders requires licensure from the Commissioner under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
AND WHEREAS, United Capital Lenders, 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 United Capital Lenders enter into this Settlement Agreement as follows:
| 1. | No later than the date this Settlement Agreement is executed by United Capital Lenders, United Capital Lenders 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 Two Thousand Dollars ($2,000) 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 United Capital Lenders 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 United Capital Lenders based on the allegation contained herein if any representations made by United Capital Lenders in this Settlement Agreement are subsequently discovered to be untrue or if United Capital Lenders 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 United Capital Lenders 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 United Capital Lenders to enforce this Settlement Agreement if the Commissioner determines that United Capital Lenders 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 5th day of October 2010. ________/s/_________
Howard F. Pitkin
Banking Commissioner
I, George Herghelegiu, state on behalf of United Capital Lenders 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 United Capital Lenders LLC; that United Capital Lenders LLC agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that United Capital Lenders LLC voluntarily agrees to enter into this Settlement Agreement, expressly waiving any right to a hearing on the matters described herein.
By: ________/s/_________
Name: George Herghelegiu
Title: President
United Capital Lenders LLC
State of: Pennsylvania
County of: Bucks
On this the 24th day of September 2010, before me, Jennifer M. Fornara, the undersigned officer, personally appeared George Herghelegiu who acknowledged himself to be the President of United Capital Lenders LLC, a member managed/manager managed limited liability company, that he as such President, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself as President.
In witness whereof I hereunto set my hand.
________/s/_________
Notary Public
Date Commission Expires: February 11, 2011