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IN THE MATTER OF: WATERHOUSE FINANCIAL ("Waterhouse Financial") |
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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, Waterhouse Financial is a Connecticut limited liability company that is licensed as a mortgage broker under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
WHEREAS, on March 26, 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 Waterhouse Financial 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 Waterhouse Financial employed or retained, during the period of December 14, 2009 through February 20, 2010, one (1) individual as a mortgage loan originator without licensing such individual, 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 Waterhouse Financial, including proceedings to revoke Waterhouse Financial’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 Waterhouse Financial 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 Waterhouse Financial 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 Waterhouse Financial acknowledge the possible consequences of formal administrative proceedings;
WHEREAS, Waterhouse Financial 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, Waterhouse Financial herein represents to the Commissioner that the individual alleged to be an unlicensed mortgage loan originator in violation of Section 36a-486(b) of the Connecticut General Statutes during the period of December 14, 2009 through February 20, 2010, is in the process of becoming licensed as a mortgage loan originator to engage in mortgage-related activity with Waterhouse Financial, pursuant to the requirements under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
WHEREAS, Waterhouse Financial 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 Waterhouse Financial requires licensure from the Commissioner under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
AND WHEREAS, Waterhouse Financial, 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 Waterhouse Financial enter into this Settlement Agreement as follows:
| 1. | No later than the date this Settlement Agreement is executed by Waterhouse Financial, Waterhouse Financial 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 One Thousand Dollars ($1,000) 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 Waterhouse Financial 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 Waterhouse Financial based on the allegation contained herein if any representations made by Waterhouse Financial in this Settlement Agreement are subsequently discovered to be untrue or if Waterhouse Financial 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 Waterhouse Financial 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 Waterhouse Financial to enforce this Settlement Agreement if the Commissioner determines that Waterhouse Financial 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 7th day of October 2010. ________/s/_________
Howard F. Pitkin
Banking Commissioner
I, Lloyd Bromfield, state on behalf of Waterhouse Financial Mortgage Consultants, 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 Waterhouse Financial Mortgage Consultants, LLC; that Waterhouse Financial Mortgage Consultants, LLC agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that Waterhouse Financial Mortgage Consultants, LLC voluntarily agrees to enter into this Settlement Agreement, expressly waiving any right to a hearing on the matters described herein.
By: ________/s/_________
Name: Lloyd Bormfield
Title:
Waterhouse Financial
Mortgage Consultants, LLC
State of: Connecticut
County of: New Haven
On this the 2nd day of September 2010, before me, Maryann DeSanto, the undersigned officer, personally appeared Lloyd Bromfield who acknowledged himself to be the President of Waterhouse Financial Mortgage Consultants, 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 limited liability company by himself as Owner/President.
In witness whereof I hereunto set my hand.
________/s/_________
Notary Public
Date Commission Expires: Oct. 31, 2012