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, Czarniewski is an individual who was licensed as a mortgage loan originator in Connecticut for the 2009 licensing period, although her license was not effective from January 1 through November 20, 2009, and who was licensed as a mortgage loan originator in Connecticut for the 2010 licensing period until November 2, 2010, when her license was surrendered;
 
WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking, investigated the activities of Czarniewski pursuant to Sections 36a-17(a) and 36a-498f(a) of the Connecticut General Statutes to determine if she 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 investigation, on January 19, 2011, the Commissioner, acting pursuant to Sections 36a-494(b), 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 Czarniewski and several other respondents, which Notice is incorporated herein by reference;

WHEREAS, the Notice alleges, with regard to Czarniewski, that on or about June 4, 2009, during the period when her mortgage loan originator license was not effective, Czarniewski acted as an unlicensed mortgage loan originator in connection with a residential mortgage loan in Connecticut, in violation of Section 36a-486(b) of the then applicable Connecticut General Statutes;

WHEREAS, the Notice alleges, with regard to Czarniewski, that Czarniewski misrepresented, concealed, suppressed, intentionally omitted or otherwise intentionally failed to disclose material particulars of a mortgage loan transaction to lenders entitled to such information in violation of Section 36a-494(b) of the then applicable Connecticut General Statutes;

WHEREAS, the Notice was mailed on January 20, 2011, to Czarniewski by registered mail, return receipt requested (Registered Mail No. RB028037544US);

WHEREAS, Czarniewski received the Notice sent by registered mail on January 21, 2011;

WHEREAS, the Department received an Appearance and Request for Hearing form from Czarniewski on January 25, 2011, requesting a hearing on the Notice, which such hearing is currently scheduled for June 23, 2011;

WHEREAS, as a result of subsequent investigation, the Commissioner alleges that Czarniewski engaged in unlicensed mortgage loan activity in violation of Section 36a-486(b) of the then applicable Connecticut General Statutes on a residential mortgage loan that closed on or about June 3, 2009, at a time when Czarniewski’s mortgage loan originator license was not effective;

WHEREAS, as a result of subsequent investigation, the Commissioner alleges that Czarniewski was violating Section 36a-486(a) of the Connecticut General Statutes through identified advertising present on a church website on the Internet;

WHEREAS, such additional allegations would support initiation of further administrative proceedings against Czarniewski, including proceedings to cease and desist pursuant to Sections 36a-494(b) and 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty of up to one hundred thousand dollars ($100,000) per violation on Czarniewski pursuant to Sections 36a-494(b) and 36a-50(a) of the Connecticut General Statutes;

WHEREAS, such additional enforcement proceedings would constitute a contested case within the meaning of Section 4-166(2) 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 consent order, unless precluded by law;

WHEREAS, Czarniewski herein represents to the Commissioner that she does not know, and had no interaction of any kind with, Respondent Narain, identified in the Notice, pertaining to the 2009 residential mortgage loans identified in the Notice and herein;

WHEREAS, Czarniewski herein represents to the Commissioner that she did not take any of the applications for the 2009 residential mortgage loans set forth in the Notice or identified herein, nor did she negotiate, solicit, arrange or find the mortgage loan;

WHEREAS, Czarniewski herein represents to the Commissioner that her involvement in each of the 2009 residential mortgage loans described in the Notice and herein, and on any other residential mortgage loan during the period of time when her license was not effective, was limited to voluntarily assisting the borrowers, each of whom were existing or potential insurance clients of Czarniewski, by:  (a) transmitting loan documents at their request by facsimile; and/or (b) attending the closing;

WHEREAS, Czarniewski herein represents to the Commissioner that she did not receive any compensation from any source for such services;

WHEREAS, Czarniewski herein represents to the Commissioner that since she surrendered her license in 2010, she has not engaged in the business of a mortgage loan originator with respect to dwellings located in this state;

WHEREAS, Czarniewski has caused the identified advertising to be removed from the Internet, and further represents to the Commissioner that she is not otherwise advertising or causing to be advertised that she will negotiate, solicit, place or find a residential mortgage loan, either directly or indirectly;

WHEREAS, both the Commissioner and Czarniewski acknowledge the possible consequences of formal administrative proceedings, and Czarniewski 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 allegations contained in the Notice and set forth herein;

WHEREAS, Czarniewski acknowledges that this Consent Order is a public record and, notwithstanding the foregoing paragraph, constitutes a finding by the Commissioner that Czarniewski has been involved in a violation of a financial services-related regulation or statute that will be required to be disclosed in response to regulatory disclosure questions on the MU2 Form or MU4 Form on the Nationwide Mortgage Licensing System and Registry (“NMLS”), as such forms may be applicable to Czarniewski in the future;

WHEREAS, Czarniewski has submitted evidence demonstrating economic hardship, such that the Commissioner believes that Czarniewski is incapable of paying any civil penalty that otherwise could have been assessed against her pursuant to the Notice and the additional allegations set forth herein;

WHEREAS, the Commissioner has determined that no civil penalty will be imposed on Czarniewski based on such economic hardship;

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

AND WHEREAS, Czarniewski, through her execution of this Consent Order, voluntarily agrees to waive her procedural rights, including a right to a hearing as it pertains to the allegation contained in the Notice and set forth herein, and including a right to notice and a hearing as it pertains to the additional allegations set forth herein, and voluntarily waives her right to seek judicial review or otherwise challenge or contest the validity of this Consent Order.

CONSENT TO ENTRY OF SANCTION

WHEREAS, Czarniewski, through her 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 1st day of July 2011.                   ________/s/_________
                                                     Howard F. Pitkin
                                                     Banking Commissioner

I, Veronica Rose Czarniewski, state that I have read the foregoing Consent Order; that I know and fully understand its contents; that I agree freely and without threat or coercion of any kind to comply with the sanction entered and terms and conditions ordered herein; and that I voluntarily agree to enter into this Consent Order, expressly waiving the procedural rights set forth herein as to the matters described herein.                                           

State of:  CT

County of:  New Haven

On this the 30th day of June 2011, before me, Robert Kelly, the undersigned officer, personally appeared Veronica Rose Czarniewski, known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument and acknowledged that he executed the same for the purposes therein contained.

In witness whereof I hereunto set my hand.

Administrative Orders and Settlements