DOB: Bulletin 2468 - June 10, 2011

The Department of Banking News Bulletin 

Bulletin # 2468
Week Ending June 10,  2011

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
Branch 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
6/02/11
Union Savings Bank
Danbury
FROM:  148 Main Street
           Danbury, CT  06810
TO:      116 Main Street
           Danbury, CT  06810
filed to
relocate
6/18/11
Naugatuck Savings Bank
Naugatuck
2989 Whitney Avenue
Hamden, CT  06518
opening
date
 

CONSUMER CREDIT DIVISION ACTIVITY
Order to Cease and Desist, Order of Repayment of Fees
and Order Imposing Civil Penalty
 
On May 18, 2011, the Commissioner issued an Order to Cease and Desist, Order of Repayment of Fees and Order Imposing Civil Penalty (“Order”) In the Matter of:  Equity Advantage Group, Inc. (“Respondent”).  The basis of the Order was that Respondent engaged in debt negotiation in this state without obtaining the required license, in violation of Section 36a-671(b) of the 2010 Supplement to the General Statutes.  Respondent was ordered to cease and desist from violating Section 36a-671(b) of the 2010 Supplement to the General Statutes, to pay a civil penalty in the amount of $10,000, and to repay fees in the amount of $600 to a Connecticut resident.
 
Consent Orders
 
On May 17, 2011, the Commissioner entered into a Consent Order with Residential Mortgage Services Inc. (“Residential Mortgage Services”).  The Consent Order was based on an examination by the Consumer Credit Division.  As a result of such examination, the Commissioner alleged that Residential Mortgage Services employed or retained, on April 22, 2009, one (1) individual as a mortgage loan originator who was not licensed, in violation of Section 36a-486(b) of the Connecticut General Statutes.  As part of the Consent Order, Residential Mortgage Services agreed to pay $1,000 as a civil penalty.
 
On May 18, 2011, the Commissioner entered into a Consent Order with Parks, Randy E. and Fishman, David d/b/a Homeowners Finance Co. (“Homeowners Finance”).  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, the Commissioner alleged that Homeowners Finance failed to file a new form of surety bond in an appropriate amount by July 21, 2010, in violation of Section 36a-492 of the Connecticut General Statutes.  As part of the Consent Order, Homeowners Finance agreed to pay $500 as a civil penalty.
 
On May 19, 2011, the Commissioner entered into a Consent Order with Patriot Lending Group, Inc. (“Patriot Lending”).  The Consent Order was based on an examination by the Consumer Credit Division.  As a result of such examination, the Commissioner alleged that Patriot Lending employed or retained, during the period of June 6, 2008 through January 13, 2010, two (2) individuals as originators or mortgage loan originator without first registering them, or without such individuals being licensed, in violation of Sections 36a 486 (b) and 36a-511(b) of the then applicable Connecticut General Statutes.  As part of the Consent Order, Patriot Lending agreed to pay $2,000 as a civil penalty.
 
On May 24, 2011, the Commissioner entered into a Consent Order with JHass Group, L.L.C. a/k/a J. Hass Group, LLC (“JHass”).  The Consent Order 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, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing issued on November 5, 2010, that JHass offered to engage and engaged in debt negotiation in this state without obtaining the required license, in violation of Section 36a-671(b) of the 2010 Supplement to the General Statutes; entered into service contracts for debt negotiation that did not comport with applicable statutory requirements, in violation of Section 36a-671b(b) of the 2010 Supplement to the General Statutes; and made statements in documents filed with the Commissioner that were, at the time and in the 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.  As part of the Consent Order, JHass was ordered to pay $50,000 as a civil penalty and to refund each Connecticut debtor who entered into an agreement with JHass for debt negotiation services on or after October 1, 2009, all fees and charges paid by such Connecticut debtor, whether paid to JHass or to a third party.  In addition, as part of the Consent Order, the pending application for licensure filed by JHass was deemed withdrawn, and any future application made for licensure to engage or offer to engage in debt negotiation in Connecticut shall be subject to an independent third party audit of JHass, at the expense of JHass, to ascertain its ability to comply with the requirements imposed by Section 36a-671 et. seq. of the Connecticut General Statutes.
 
Consent Agreement and Order
 
On May 27, 2011, the Commissioner entered into a multistate Consent Agreement and Order (“Order”) with Mortgage Access Corp. d/b/a Weichert Financial Services (“MAC”).  The Order was based upon an examination by several state mortgage regulators (“Multi-State Examination”).  As a result of the Multi-State Examination, the regulators found, inter alia, that MAC’s written policy permitted individuals unlicensed in particular states to complete a worksheet developed by MAC which, when completed by the unlicensed individual, was transferred to MAC’s “Interstate Lending Desk” and forwarded to a licensed mortgage loan originator for signature on the Uniform Residential Loan Application, in violation of each state’s mortgage loan originator licensing requirements.  As part of the Order, MAC agreed to pay a $3,000,000 civil penalty to be apportioned among the state regulators.
 
 
       Dated:  Tuesday, June 14, 2011
 
       Howard F. Pitkin
       Banking Commissioner