DOB: News Bulletin 2236 - December 29, 2006

The Department of Banking News Bulletin 

Bulletin # 2236
Week Ending December 29, 2006

This bulletin constitutes the only official notification you will receive from this office concerning any of the following applications. Any observations you may have are solicited. Any comments should be in writing to Howard F. Pitkin, Banking Commissioner, at the Connecticut Department of Banking, 260 Constitution Plaza, Hartford, CT 06103-1800 or via E-mail. Written comments will be considered only if they are received within ten days from the date of this bulletin.



REPRESENTATIVE OFFICE

On December 22, 2006, pursuant to Section 36a-428g of the Connecticut General Statutes, the Commissioner issued a license to Lloyds TSB Offshore Limited to establish and maintain a representative office at Stamford Plaza, 263 Tresser Boulevard, 9th Floor, Stamford, Connecticut.

CONSUMER CREDIT DIVISION ACTIVITY
Settlement Agreements

On December 26, 2006, the Commissioner entered into a Settlement Agreement with EPI Mortgage Center, Inc. (“EPI”).  The Settlement Agreement was based on an investigation by the Consumer Credit Division.  As a result of such investigation the Commissioner alleged that EPI closed loans in two names other than that in which EPI was licensed, in violation of Sections 36a-486 and 36a-511 of the Connecticut General Statutes; imposed prepaid finance charges on two mortgage loans issued to Connecticut consumers that exceeded the aggregate five percent maximum amount that may be charged or imposed on the initial principal loan amount and refinancings within two years from the date of the initial loan, in violation of Section 36a-498a of the 2006 Supplement to the General Statutes as amended by Public Act 06-45; and, employed or retained at least one originator without registering them, in violation of Sections 36a-486(b) and Section 36a-511(b) of the Connecticut General Statutes.  Pursuant to the Settlement Agreement, EPI agreed to remit to the Department of Banking $6,000 as a civil penalty.  A copy of the Settlement Agreement can be obtained from the department's website, www.ct.gov/dob or by contacting the department's Legal Division.

On December 27, 2006, the Commissioner entered into a Settlement Agreement with First Alternative Mortgage Corp. (“FAMC”).  The Settlement Agreement was based on an investigation by the Consumer Credit Division.  As a result of such investigation, the Commissioner alleged that FAMC filed applications for mortgage licenses that contained inaccurate information, in violation of Sections 36a-494(a) and 36a-517(a) of the 2006 Supplement to the General Statutes as amended by Public Act 06-45.  Pursuant to the Settlement Agreement, FAMC agreed to remit to the Department of Banking $5000 as a civil penalty.  A copy of the Settlement Agreement can be obtained from the department's website, www.ct.gov/dob or by contacting the department's Legal Division.

 

       Dated:  Wednesday, January 3, 2007
 
       Howard F. Pitkin
       Banking Commissioner