The Department of Banking News Bulletin
Bulletin # 2357
Week Ending April 24, 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.
REORGANIZATION INTO A HOLDING COMPANY
On April 20, 2009, pursuant to Sections 36a-192 and 36a-193 of the Connecticut General Statutes, Dime Bank, Norwich, Connecticut, a Connecticut mutual savings bank, filed an application to reorganize into a holding company to be known as Dime Mutual Holding Company, a Connecticut non-stock corporation with Dime Bank as its wholly-owned subsidiary.
On April 15, 2009, pursuant to Section 36a-125 of the Connecticut General Statutes, Naugatuck Savings Bank, a Connecticut bank, and Castle Bank & Trust Company, a Connecticut bank, both wholly-owned subsidiaries of Nutmeg Financial, MHC, filed an application for the merger of Castle Bank & Trust Company with and into Naugatuck Savings Bank.
On April 24, 2009, pursuant to Section 36a-126(a) of the Connecticut General Statutes, the Commissioner approved the merger of Enfield Federal Savings and Loan Association, a federal bank, with and into Valley Bank, a Connecticut bank, both wholly-owned subsidiaries of New England Bancshares Inc., the resultant bank to operate under the name New England Bank.
CONSUMER CREDIT DIVISION ACTIVITY
Check Cashing Service License Activity
Frog Bridge Check Cashing Plus, LLC
600 Main Street
Willimantic, CT 06226
Notice of Intent to Issue Order to Cease and Desist,
Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing
On March 10, 2009, the Commissioner 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 (“Notice”) In the Matter of: Matthew J. Kaponis
(“Respondent”). The Notice alleged that from at least June 16, 2008 to July 2, 2008, Respondent solicited a mortgage loan customer who was looking to refinance a mortgage loan and received compensation for such solicitation without obtaining the required license to act as a mortgage broker, in violation of Section 36a-486(a) of the Connecticut General Statutes (“General Statutes”), which violation forms the basis to issue an order to cease and desist against Respondent pursuant to Section 36a-52(a) of the General Statutes, and to impose a civil penalty against Respondent pursuant to Section 36a-50(a) of the General Statutes. Respondent was afforded an opportunity to request a hearing with regard to the allegations set forth in the Notice. A copy of the Notice can be obtained from the Department's website, www.ct.gov/dob
On April 6, 2009, the Commissioner entered into a Settlement Agreement with VIP Mortgage Corporation (“VIP”). The Settlement Agreement was based on an examination and investigation by the Consumer Credit Division. As a result of the examination and investigation, the Commissioner alleged that VIP employed or retained, during the period of December 2006 through February 2007, two loan originators without registering them, in violation of Sections 36a-486(b) and 36a-511(b) of the Connecticut General Statutes and that it failed to maintain a surety bond for its Chicopee, Massachusetts office in violation of Section 36a-492(a) of the 2008 Supplement to the General Statutes, as amended by Public Acts 07-156 and 08-176. VIP represented that it had closed its Chicopee office license in September 2008 and that it conducted no business under its Chicopee office license after September 2008. VIP 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 $2,000 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.
Notice of Intent to Refuse to Renew Mortgage Loan
Originator License and Notice of Right to Hearing
On April 9, 2009, the Commissioner issued a Notice of Intent to Refuse to Renew Mortgage Loan Originator License and Notice of Right to Hearing (“Order”), In the Matter of: Ronald Anthony Gagliardi
. Respondent is a licensed mortgage loan originator for Family Choice Mortgage Corporation, a licensed mortgage lender who, on December 17, 2008, requested renewal of his mortgage loan originator license. The action was based on Respondent’s response to Question 8(D)(2) on Form MU4 of the National Mortgage Licensing System (“NMLS”) when transitioning onto the NMLS on September 29, 2008. In the Order, the Commissioner alleged that the response constitutes a material misstatement in an application which would be sufficient grounds to deny Respondent’s renewal under Section 36a 489(b) of the Connecticut General Statutes (“General Statutes”), and constitutes sufficient grounds to refuse to renew Respondent’s license to act as a mortgage loan originator in Connecticut pursuant to Sections 36a 494(a)(2) and 36a-51 of the General Statutes. In addition, the Commissioner alleged that Respondent’s response to Question 1 on the Renewal Addendum signed and dated August 17, 2006 and Respondent’s response to Question 8(D)(2) on NMLS Form MU4, demonstrate that Respondent’s character, integrity and general fitness are not such as to warrant belief that granting Respondent a mortgage loan originator license would be in the public interest and consistent with the purposes of Sections 36a-485 to 36a-498a, inclusive, and Sections 36a-760a to 36a-760h, inclusive, of the General Statutes, which constitutes sufficient grounds to refuse to renew Respondent’s license to act as a mortgage loan originator in Connecticut pursuant to Sections 36a-494(a)(2) and 36a-51 of the General Statutes. Respondent was afforded an opportunity to request a hearing with regard to the allegations set forth in the Order. A copy of the Order can be obtained from the department's website, www.ct.gov/dob
Dated: Tuesday, April 28, 2009