DOB: News Bulletin 2356 - April 17, 2009

 
The Department of Banking News Bulletin 

Bulletin # 2356
Week Ending April 17, 2009

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.


 
BRANCH ACTIVITY
State Bank Activity
 
Section 36a-145 of the Connecticut General Statutes requires certain applications for a branch, or for a limited branch at which loans will be made, be accompanied by a plan detailing how adequate services to meet the banking needs of all community residents will be provided.  Plans are submitted when such applications are filed and are available for public inspection and comment at this Department for a period of 30 days.  Questions concerning branch activity should be directed to the Financial Institutions Division, (860) 240-8180.

 

Date Bank Location Activity
4/16/09
NewAlliance Bank
New Haven
200 Boston Post Road
Madison, CT  06443
convert to
limited branch
 

ORDER FOR HEARING
 
On April 13, 2009, pursuant to Section 36a-70 of the Connecticut General Statutes, an order for hearing was issued on the application of Ryan A. Duques, James A. Warner, Jeffrey T. Beatty, Henry (Ric) Duques, Marietta S. Lee, J. Richard Lee, John A. Matthews, Michael A. McKinnon, Christopher J. Zane, Anthony Avallone, Will Brierly, John Kelley, Stephen M. Davis, Michael J. Maloney, and Thomas M. Pinchbeck to organize Sachem Bank, Madison, Connecticut, for the purpose of doing business as a Connecticut bank.  The hearing will be held at the Department of Banking, Room 50, 260 Constitution Plaza, Hartford, Connecticut, on May 6, 2009, at 10:00 a.m.
 
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Notice of Intent to Revoke Registration as Agent Issued
 
On April 15, 2009, the Banking Commissioner issued a Notice of Intent to Revoke Registration as Agent with respect to John D. Crooks of 26 Canterbury Turnpike, Norwich, Connecticut.  The respondent was previously associated with GunnAllen Financial, Inc., a Connecticut-registered broker-dealer.  Respondent’s broker-dealer agent registration with GunnAllen Financial, Inc. had been voluntarily withdrawn on May 7, 2008.  The Connecticut Uniform Securities Act authorizes the Commissioner to initiate revocation proceedings within one year following a withdrawal of registration.
 
The Notice of Intent to Revoke Registration as Agent alleged that, on February 24, 2009, in the Superior Court for the Judicial District of New London, the respondent pled nolo contendere to third degree larceny in violation of Section 53a-124 of the Connecticut General Statutes.  The respondent allegedly used his positions as treasurer of Veterans Memorial High Stakes Bingo, Inc. and of the Norwich Little League, Inc. to embezzle a total of $13,150 from both organizations.
 
The respondent was afforded an opportunity to request a hearing on the Notice of Intent to Revoke Registration as Agent.
 
CONSUMER CREDIT DIVISION ACTIVITY
Settlement Agreements
 
On February 4, 2009, the Commissioner entered into a Settlement Agreement with Prime Capital Lenders, LLC (“Prime Capital”).  The Settlement Agreement was based on an examination by the Consumer Credit Division.  As a result of such examination, the Commissioner alleged that Prime Capital employed or retained, during the period of May 2007 through May 2008, one loan originator without registering him, in violation of Section 36a-486(b) of the Connecticut General Statutes.  Prime Capital agreed to voluntarily make a contribution to the State Regulatory Registry LLC, a wholly-owned subsidiary of the Conference of State Bank Supervisors (“CSBS”), in the amount of $1,000, to support the Nationwide Mortgage Licensing System and Registry, jointly developed by the CSBS and the American Association of Residential Mortgage Regulators.  Upon entry of the Settlement Agreement, the matter was resolved.
 
On February 27, 2009, the Commissioner entered into a Settlement Agreement with Signature Mortgage Group, LLC (“Signature”) and Lisette S. Cherry (“Cherry”).  The Settlement Agreement was based on an examination by the Consumer Credit Division.  As a result of such examination, the Commissioner alleged that Signature, through its manager/member Cherry, filed applications for first and secondary mortgage broker licenses in Connecticut and made statements to the Commissioner which were, at the time and in light of the circumstances under which they were made, false or misleading in a material respect, in violation of Section 36a-53a of the Connecticut General Statutes (“General Statutes”). Pursuant to the Settlement Agreement, Respondents are barred for a period of 5 years from acting as a mortgage broker, mortgage correspondent lender, mortgage lender or mortgage loan originator in Connecticut and from being an officer, general partner, member, sole proprietor or employee of any entity required to be licensed pursuant to Part I of Chapter 668, Sections 36a-485 to 36a-534a, inclusive, of the General Statutes.
 
On February 27, 2009, the Commissioner entered into a Settlement Agreement with Cambridge Mercantile Corp. (U.S.A.) (“Cambridge”).  The Settlement Agreement was based on an investigation by the Consumer Credit Division.  As a result of such investigation, the Commissioner alleged that during the period from February 2007 through November 2007, in violation of Section 36a-597 of the Connecticut General Statutes (“General Statutes”), Cambridge engaged in the business of money transmission without obtaining the required license.  Pursuant to the Settlement Agreement, Cambridge agreed not to engage in the business of issuing Connecticut payment instruments or engage in the business of money transmission in Connecticut within the meaning of Section 36a-597(a) of the General Statutes without first obtaining the required license.  In addition, Cambridge agreed to remit to the Department $5,000 as a civil penalty. 
 
On March 3, 2009, the Commissioner entered into a Settlement Agreement with Homestead Funding Corp. (“Homestead”).  The Settlement Agreement was based on an examination by the Consumer Credit Division.  As a result of such examination, the Commissioner alleged that Homestead employed or retained, during the period of February 2007 through April 2008, three loan originators without registering them, in violation of Sections 36a-486(b) and 36a-511(b) of the Connecticut General Statutes.  Homestead agreed to voluntarily make a contribution to the State Regulatory Registry LLC, a wholly-owned subsidiary of the Conference of State Bank Supervisors (“CSBS”), in the amount of $3,000 to support the Nationwide Mortgage Licensing System and Registry, jointly developed by the CSBS and the American Association of Residential Mortgage Regulators.  Upon entry of the Settlement Agreement, the matter was resolved.
 
On March 20, 2009, the Commissioner entered into a Settlement Agreement with Cornerstone Capital Group, LLC (“Cornerstone”).  The Settlement Agreement was based on an examination by the Consumer Credit Division.  As a result of such examination the Commissioner alleged that Cornerstone employed or retained, during the period of February 13, 2007 through March 15, 2007, one loan originator without registering such individual, in violation of Sections 36a-486(b) and 36a-511(b) of the Connecticut General Statutes.  Cornerstone agreed to voluntarily make a contribution to the State Regulatory Registry LLC, a wholly-owned subsidiary of the Conference of State Bank Supervisors (“CSBS”), in the amount of $1,000 to support the Nationwide Mortgage Licensing System and Registry, jointly developed by the CSBS and the American Association of Residential Mortgage Regulators.  Upon entry of the Settlement Agreement, the matter was resolved.
 

On March 26, 2009, the Commissioner entered into a Settlement Agreement with Pristine Mortgage Corporation (“Pristine”).  The Settlement Agreement was based on an examination by the Consumer Credit Division.  As a result of such examination, the Commissioner alleged that Pristine employed or retained, during the period of June 2005 through December 2007, five loan originators without registering them, in violation of Section 36a-486(b) of the Connecticut General Statutes.  Pristine agreed to voluntarily make a contribution to the State Regulatory Registry LLC, a wholly-owned subsidiary of the Conference of State Bank Supervisors (“CSBS”), in the amount of $5000 to support the Nationwide Mortgage Licensing System and Registry, jointly developed by the CSBS and the American Association of Residential Mortgage Regulators.  Upon entry of the Settlement Agreement, the matter was resolved.
 

On March 27, 2009, the Commissioner entered into a Settlement Agreement with Freedom Mortgage Corporation d/b/a Jefferson Home Mortgage and Loan, LLC (“Freedom”).  The Settlement Agreement was based on an examination by the Consumer Credit Division.  As a result of such examination, the Commissioner alleged that Freedom employed or retained, during the period of January 2006 through July 2008, forty-three loan originators without registering them, in violation of Section 36a-486(b) of the Connecticut General Statutes.  Freedom agreed to voluntarily make a contribution to the State Regulatory Registry LLC, a wholly-owned subsidiary of the Conference of State Bank Supervisors (“CSBS”), in the amount of $43,000 to support the Nationwide Mortgage Licensing System and Registry, jointly developed by the CSBS and the American Association of Residential Mortgage Regulators.  Upon entry of the Settlement Agreement, the matter was resolved.
 
On April 9, 2009, the Commissioner entered into a Settlement Agreement with PHH Mortgage Corporation, PHH Mortgage Corporation d/b/a Century 21 Mortgage, PHH Mortgage Corporation d/b/a Coldwell Banker Mortgage, PHH Mortgage Corporation d/b/a ERA Mortgage, PHH Mortgage Corporation d/b/a Domain Distinctive Property Finance, PHH Mortgage Corporation d/b/a Instamortgage.com, PHH Mortgage Corporation d/b/a PHH Mortgage Services (“PHH Mortgage”).  The Settlement Agreement was based on an examination by the Consumer Credit Division.  As a result of such examination, the Commissioner alleged that PHH Mortgage employed or retained, during the period of February 28, 2006 through October 1, 2007, six loan originators without registering them, in violation of Sections 36a-486(b) and 36a-511(b) of the Connecticut General Statutes.  PHH Mortgage agreed to voluntarily make a contribution to the State Regulatory Registry LLC, a wholly-owned subsidiary of the Conference of State Bank Supervisors (“CSBS”), in the amount of $6,000 to support the Nationwide Mortgage Licensing System and Registry, jointly developed by the CSBS and the American Association of Residential Mortgage Regulators.  Upon entry of the Settlement Agreement, the matter was resolved.
 
 
       Dated:  Tuesday, April 21, 2009
 
       Howard F. Pitkin
       Banking Commissioner