DOB: Bulletin 2546 - December 7, 2012

The Department of Banking News Bulletin 

Bulletin # 2545
Week Ending November 30, 2012

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.



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),
PUBLIC SERVICE COMPANY, CERTIFIED TELECOMMUNICATIONS PROVIDER AND
ELECTRIC SUPPLIER CUSTOMER SECURITY DEPOSITS, MORTGAGE ESCROW ACCOUNTS
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 2013 is 0.11%.  However, Section 16-262j(c) provides that in no event shall the rate be less than 1.5%.  Therefore, the interest rate to be paid on public service company, certified telecommunications provider and electric supplier customer security deposits is 1.5% for the period commencing January 1, 2013 and ending December 31, 2013.
 

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
12/08/12
Naugatuck Savings Bank
Naugatuck
665 North Colony Road
Wallingford, CT  06492
Opening
Date
 

CONSUMER CREDIT DIVISION ACTIVITY
Notice of Intent to Issue Order to Cease and Desist
and Notice of Intent to Impose Civil Penalty
 
On November 8, 2012, 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:  C.U. Members Mortgage Corporation (NMLS # 65128) (“Respondent”), East Haven, Connecticut.  The Notice was the result of an investigation by the Consumer Credit Division.  The Notice alleges that Respondent failed to file certain quarterly and annual information required on the Nationwide Mortgage Licensing System and Registry, in violation of Section 36a-534b(c)(3) of the 2012 Supplement to the General Statutes and Section 36a-534b(c)(3) of the 2012 Supplement to the General Statutes, as amended by Public Act 12-96.  Respondent was afforded an opportunity to request a hearing on the allegations set forth in the Notice.
 
On November 13, 2012, 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:  Charter Oak Lending Group, LLC (NMLS # 7748) (“Respondent”), Bethel, Connecticut.  The Notice was the result of an investigation by the Consumer Credit Division.  The Notice alleges that Respondent failed to file certain annual and quarterly information required on the Nationwide Mortgage Licensing System and Registry in violation of Section 36a-534b(c)(3) of the 2012 Supplement to the General Statutes and Section 36a-534b(c)(3) of the 2012 Supplement to the General Statutes, as amended by Public Act 12-96.  Respondent was afforded an opportunity to request a hearing on the allegations set forth in the Notice.
 
Temporary Order to Cease and Desist, Order to Make Restitution, Notice of Intent
to Issue Order to Cease and Desist and Notice of Intent to Impose Civil Penalty
 
On November 2, 2012, the Commissioner issued a Temporary Order to Cease and Desist, Order to Make Restitution, 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:  Persels & Associates, LLC (“Respondent”), Towson, Maryland.  The Notice was the result of an investigation by the Consumer Credit Division.  The Notice alleges that Respondent engaged in debt negotiation in this state without the required license, in violation of Section 36a-671(b) of the Connecticut General Statutes, in effect prior to October 1, 2011, and Section 36a-671(b) of the 2012 Supplement to the General Statutes.  The Commissioner also found that the public welfare required the issuance of a Temporary Order to Cease and Desist against Respondent.  Respondent was afforded an opportunity to request a hearing with regard to the allegations set forth in the Notice.
 
Order to Cease and Desist, Order of Repayment of Fees
and Order Imposing Civil Penalty
 
On November 5, 2012, the Commissioner issued an Order to Cease and Desist, Order of Repayment of Fees and Order Imposing Civil Penalty (“Order”) In the Matter of:  Legal Loan Review Inc. a/k/a Legal Loan Review (“Respondent”), Anaheim, California.  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 Connecticut General Statutes, in effect prior to October 1, 2011, and Section 36a-671(b) of the 2012 Supplement to the General Statutes, and that the fees charged by Respondent for debt negotiation services were excessive.  Respondent was ordered to cease and desist from violating Section 36a-671(b) of the Connecticut General Statutes, in effect prior to October 1, 2011, and Section 36a-671(b) of the 2012 Supplement to the General Statutes; to repay fees to certain identified Connecticut residents; and to pay a civil penalty in the amount of $100,000.
 
Consent Order
 
On October 26, 2012, the Commissioner entered into a Consent Order with Anilom Mortgage Corporation (NMLS # 120299) (“Anilom”), Norwalk, Connecticut, and Samuel Molina Jr. (NMLS # 130560) (“Molina”).  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, on October 10, 2012, the Commissioner issued a Temporary Order to Cease and Desist, Order of Summary Suspension, Second Amended Notice of Intent to Revoke and Refuse to Renew Mortgage Broker License, Notice of Intent to Revoke Mortgage Loan Originator License, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing issued against Anilom and Molina.  With respect to Anilom, the Commissioner alleged that Anilom, among other things:  (1) failed to establish and maintain the statutory net worth requirement; (2) failed to file various required reports on the Nationwide Mortgage Licensing System and Registry; (3) made a material misstatement in its mortgage broker application; and (4) made or caused to be made orally and in a document filed with the Commissioner in a proceeding and in an investigation under Title 36a, statements which were, at the time and in the light of the circumstances under which they were made, false or misleading in a material respect, each of which constituted sufficient grounds to revoke or refuse to renew Anilom’s license to act as a mortgage broker in Connecticut, and some of which formed bases upon which to issue an order to cease and desist and to impose civil penalties on Anilom.  With respect to Molina, the Commissioner alleged that Molina, among other things:  (1) made a material misstatement in his mortgage loan originator application; and (2) made or caused to be made orally and in a document filed with the Commissioner in a proceeding and in an investigation under Title 36a, statements which were, at the time and in the light of the circumstances under which they were made, false or misleading in a material respect, each of which constituted sufficient grounds to revoke Molina’s license to engage in the business of a mortgage loan originator in Connecticut, and some of which also provided bases upon which to issue an order to cease and desist and to impose civil penalties on Molina.  As part of the Consent Order, the mortgage broker license of Anilom and the mortgage loan originator license of Molina were each ordered revoked.
 
 
 
     Dated:  Tuesday, December 11, 2012
 
 
       Howard F. Pitkin
       Banking Commissioner