The Department of Banking News Bulletin
Bulletin # 2358
Week Ending May 1, 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.
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.
Union Savings Bank
FROM: 128 North Street
Danbury, CT 06811
TO: 126 North Street
Danbury, CT 06811
Bulletin #2356, for the week ending April 17, 2009, incorrectly omitted Craig A. Bernard, Keith B. Bishop, John F. Brady, Elizabeth Chapman and Richard L. Chorney from the list of organizers in the Order for Hearing on the application filed by the organizers to organize, pursuant to Section 36a-70 of the Connecticut General Statutes, Sachem Bank, Madison, Connecticut, for the purpose of doing business as a Connecticut Bank.
CONSUMER CREDIT DIVISION ACTIVITY
Check Cashing Service License Activity
21A Bouton Street
Norwalk, CT 06854
On April 13, 2009, the Commissioner entered into a Settlement Agreement with Prestige Mortgage Limited Liability Company (“Prestige”). The action was based on an examination by the Consumer Credit Division. As a result of such examination, the Commissioner alleged that: Prestige failed to promptly notify the Commissioner, in writing, in violation of Section 36a-490(b) of the Connecticut General Statutes (“General Statutes”), or promptly file with the Nationwide Mortgage Licensing System (“NMLS”), in violation of Section 36a 490(c) of the 2008 Supplement to the General Statutes, as amended by Public Acts 07-91, 07-156 and 08-176, the fact that one of its members had been convicted of a crime; Matthew Listro (“Listro”), one of two members of Prestige Mortgage, provided financial information and documents to Chase Manhattan Mortgage Corporation that he knew to be materially false and fraudulent for the purpose of obtaining a mortgage on behalf of a client of Prestige (“Scheme”); Prestige’s participation in the Scheme, through Listro, is conduct that illustrates that Prestige and a member of Prestige lack financial responsibility, character, reputation, integrity and general fitness such as to warrant belief that Prestige’s business will not be operated soundly and efficiently, in the public interest and consistent with the purposes of Sections 36a-485 to 36a 498a, inclusive, of the General Statutes; and, Prestige’s participation in the Scheme, through Listro, constitutes a misrepresentation, concealment, suppression, intentional omission or other intentional failure to disclose the material particulars of a mortgage loan transaction pursuant to Section 36a-494(a)(1) of the 2008 Supplement to the General Statutes, as amended by Public Acts 07-91, 07-156 and 08-176. Pursuant to the Settlement Agreement, Prestige is barred for a period of ten years from acting in or from Connecticut as a mortgage broker, mortgage correspondent lender, mortgage lender or mortgage loan originator as such terms are defined in Section 36a-485 of the General Statutes, and Listro is barred for a period of ten years from being a director, officer, general partner, member or sole proprietor of any entity required to be licensed pursuant to Part I of Chapter 668, Sections 36a 485 to 36a-534c, inclusive, of the General Statutes, and from any position that would require licensure pursuant to Part I of Chapter 668 of the General Statutes.
On April 21, 2009, the Commissioner entered into a Settlement Agreement with Mortgage Giver, LLC (“Mortgage Giver”). The Settlement Agreement was based on an examination by the Consumer Credit Division. As a result of such examination, the Commissioner alleged that Mortgage Giver employed or retained, during the period of June 2005 through March 2007, twenty-seven loan originators without registering them, in violation of Sections 36a-486(b) and 36a-511(b) of the Connecticut General Statutes. Mortgage Giver 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 $27,000 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, May 5, 2009
Howard F. Pitkin