DOB: News Bulletin 2390 - December 11, 2009

The Department of Banking News Bulletin 

Bulletin # 2390
Week Ending December 11, 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
12/07/09
Torrington Savings Bank
Torrington
FROM:  59 Torrington Road
           Route 4
           Goshen, CT 06756
TO:      55 Sharon Turnpike
           Route 4
           Goshen, CT  06756
approved
to relocate

 
INTEREST RATE TO BE PAID ON CLAIMS FOR PROPERTY, FUNDS OR MONEY
DELIVERED TO THE STATE TREASURER PURSUANT TO
SECTION 3-57a(a)(1) or (2), MORTGAGE ESCROW ACCOUNTS,
PUBLIC SERVICE COMPANY, CERTIFIED TELECOMMUNICATIONS PROVIDER
AND ELECTRIC SUPPLIER CUSTOMER SECURITY DEPOSITS
AND TENANT SECURITY DEPOSITS
 
In accordance with Sections 3-70a(e), 16-262j(d), 47a-21(i)(2) and 49-2a(c) of the Connecticut General Statutes, the deposit index for calendar year 2009 is 0.34%. However, Sections 3-70a(e), 16-262j(c), 47a-21(i)(1) and 49-2a(a) provide that in no event shall the rate be less than 1.5%.  Therefore, the interest rate to be paid on claims for property, funds or money delivered to the State Treasurer pursuant to Section 3-57a(a)(1) or (2), and mortgage escrow accounts, public service company, certified telecommunications provider and electric supplier customer security deposits and tenant security deposits is 1.5% for the period commencing January 1, 2010 and ending December 31, 2010.
 
RESCISSION OF APPROVAL TO FORM A MUTUAL HOLDING COMPANY

On November 20, 2009, Dime Bank notified the Commissioner that it was not necessary for Dime Bank to reorganize so as to form a mutual holding company at this time.  Based on the foregoing, on December 8, 2009, the Commissioner rescinded the notice of intent not to disapprove pursuant to Section 36a-192(h) of the Connecticut General Statutes, the approval pursuant to Section 36a-193 of the Connecticut General Statutes, and the approval pursuant to Section 36a-192(b)(2) of the Connecticut General Statutes issued to Dime Bank, on June 18, 2009, in connection with its application to reorganize as to form a mutual company. 
 
CREDIT UNION ACTIVITY
Branch Office Relocation
 
On December 7, 2009, pursuant to Section 36a-462a(a)(3) of the Connecticut General Statutes, Mutual Security Credit Union, Inc. requested approval to move its branch office from 404 Westport Avenue, Norwalk, Connecticut to 295 Westport Avenue, Norwalk, Connecticut.
 
CONSUMER CREDIT DIVISION ACTIVITY
Settlement Agreements
 
On November 20, 2009, the Commissioner entered into a Settlement Agreement with Citigroup Global Markets Inc. (“Citigroup Global”).  The Settlement Agreement was based on an investigation by the Consumer Credit Division.  During the course of such investigation, Citigroup Global reported that during the period of October 2004 through May 2009, it made mortgage referrals to affiliated companies and it may technically have acted as a mortgage broker without obtaining the required licensure for its main office and eleven (11) branch offices where such business was conducted, in violation of Section 36a 486(a) of the Connecticut General Statutes, and employed or retained one hundred ninety-five (195) individuals as originators or mortgage loan originators without registering or licensing them, in violation of Sections 36a-486(b) and 36a-511(b) of the then applicable Connecticut General Statutes.  Citigroup Global 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 $75,000 to support the Nationwide Mortgage Licensing System and Registry, jointly developed by CSBS and the American Association of Residential Mortgage Regulators.  A copy of the Settlement Agreement can be obtained from the Department’s website.
 
On November 20, 2009, the Commissioner entered into a Settlement Agreement with Connecticut Mortgage Services, Inc. (“Connecticut Mortgage Services”).  The Settlement Agreement was based on an examination by the Consumer Credit Division.  As a result of such examination, the Commissioner alleged that Connecticut Mortgage Services employed or retained, during the period of April 2008 through July 2008, one (1) individual as an originator or mortgage loan originator without registering or licensing such individual, in violation of Sections 36a-486(b) and 36a-511(b) of the then applicable Connecticut General Statutes.  Connecticut Mortgage Services 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 CSBS and the American Association of Residential Mortgage Regulators.  A copy of the Settlement Agreement can be obtained from the Department’s website.
 
On November 20, 2009, the Commissioner entered into a Settlement Agreement with Mortgage Assistance Company, LLC (“Mortgage Assistance Company”).  The Settlement Agreement was based on an examination by the Consumer Credit Division.  As a result of such examination, the Commissioner alleged that Mortgage Assistance Company employed or retained, during the period of September 2007 through March 2009, three (3) individuals as originators or mortgage loan originators without registering or licensing them, in violation of Sections 36a-486(b) and 36a-511(b) of the then applicable Connecticut General Statutes.  The Commissioner also alleged that in an advertisement used by Mortgage Assistance Company, Mortgage Assistance Company stated a simple interest rate without also stating an annual percentage rate in violation of 12 CFR 226.24(b), which is a regulation that is applicable to Mortgage Assistance Company’s business.  Mortgage Assistance Company 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 $4,000 to support the Nationwide Mortgage Licensing System and Registry, jointly developed by CSBS and the American Association of Residential Mortgage Regulators.  A copy of the Settlement Agreement can be obtained from the Department’s website.
 
On November 20, 2009, the Commissioner entered into a Settlement Agreement with Northeast Mortgage Corporation (“Northeast Mortgage”).  The Settlement Agreement was based on an examination by the Consumer Credit Division.  As a result of such examination, the Commissioner alleged that Northeast Mortgage employed or retained, during the period of March 2007 through November 2008, eight (8) individuals as originators or mortgage loan originators without registering or licensing them, in violation of Sections 36a-486(b) and 36a-511(b) of the then applicable Connecticut General Statutes.  The Commissioner also alleged that Northeast Mortgage paid, during the period of October 2007 through February 2009, referral fees to credit unions for five (5) loans and failed to properly document such fees on the HUD-1 Settlement Statements, in violation of 24 CFR 3500.8(b), 24 CFR 3500.14(c) and 24 CFR 3500.14(g)(III), which are regulations applicable to Northeast Mortgage’s business.  As part of the Settlement Agreement, Northeast Mortgage paid a civil penalty in the amount of $25,000.  A copy of the Settlement Agreement can be obtained from the Department’s website.

On November 20, 2009, the Commissioner entered into a Settlement Agreement with Top Flite Financial, Inc. (“Top Flite”).  The Settlement Agreement was based on an examination by the Consumer Credit Division.  As a result of such examination, the Commissioner alleged that Top Flite employed or retained, during the period of November 2008 through February 2009, one (1) individual as mortgage loan originator without licensing such individual, in violation of Section 36a-486(b) of the Connecticut General Statutes.  Top Flite 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 CSBS and the American Association of Residential Mortgage Regulators.  A copy of the Settlement Agreement can be obtained from the Department’s website.
 
On November 30, 2009, the Commissioner entered into a Settlement Agreement with Faith Home Loans, Inc. (“Faith Home Loans’’).  The Settlement Agreement was based on an investigation by the Consumer Credit Division.  As a result of such investigation, the Commissioner alleged in a Temporary Order to Cease and Desist, Order of Summary Suspension, Notice of Intent to Revoke Mortgage Broker License, Notice of Intent to Issue Order to Cease and Desist and Notice of Right to Hearing issued against Faith Home Loans on August 18, 2009, that Faith Home Loans, in violation of Section 36a-492 of the Connecticut General Statutes, as amended by Public Act 09-209, failed to maintain a surety bond that runs concurrent with the period of the license granted to Faith Home Loans to act as a mortgage broker in Connecticut from 2950 Halcyon Lane, Suite 301, Jacksonville, Florida.  As part of the Settlement Agreement, Faith Home Loans surrendered its mortgage broker license and ceased acting as a mortgage broker from the Jacksonville office.  A copy of the Settlement Agreement can be obtained from the Department’s website.
 
Temporary Order to Cease and Desist, Order of Summary Suspension,
Notice of Intent to Revoke Mortgage Broker License,
Notice of Intent to Issue Order to Cease and Desist
 
On November 23, 2009, the Commissioner issued a Temporary Order to Cease and Desist, Order of Summary Suspension, Notice of Intent to Revoke Mortgage Broker License, Notice of Intent to Issue Order to Cease and Desist and Notice of Right to Hearing (“Notice”) in the Matter of:  Allied Financial Services, LLC (“Respondent”).  The Notice alleged that Respondent failed to maintain a surety bond that runs concurrent with its license for 83 East Avenue, Suite 206, Norwalk, Connecticut, in violation of Section 36a-492 of the Connecticut General Statutes, as amended by Public Act 09-209.  The Commissioner also found that public welfare required the issuance of a Temporary Order to Cease and Desist and that public safety and welfare required the issuance of an Order of Summary Suspension of Respondent’s mortgage broker license in Connecticut.  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.
 
Order Revoking and Refusing to Renew Mortgage Loan Originator License
 
On November 23, 2009, the Commissioner issued an Order Revoking and Refusing to Renew Mortgage Loan Originator License (“Order”) in the Matter of:  Maurice Fitchett (“Respondent”).  The Order revokes Respondent’s license to act as a mortgage loan originator in Connecticut and orders that Respondent’s license as such not be renewed.  The Order was based on Respondent’s material misstatements in his application for renewal of his mortgage loan originator license and in a prior application for renewal of his originator registration with respect to his criminal history.  A copy of the Order can be obtained from the Department’s website.
 
 
       Dated:  Tuesday, December 15, 2009
 
       Howard F. Pitkin
       Banking Commissioner