DOB: Bulletin 2593 - November 1, 2013

The Department of Banking News Bulletin 

Bulletin # 2593
Week Ending November 1, 2013

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
10/30/13
Manufactuers and Traders
   Trust Company
Buffalo, NY
* 501 Merritt 7
   Norwalk, CT  06851
Approved
* Loan Production Office
 
 
CONSUMER CREDIT DIVISION ACTIVITY
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 September 18, 2013, the Commissioner issued a Temporary Order to Cease and Desist, Order to Make Restitution (“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 (collectively “Notice”) in the Matter of:  National Mortgage Modification Stimulus Reserve, Inc. (“Stimulus Reserve”), Coronado and Sherman Oaks, California; Making Home Affordable USA a/k/a National Mortgage Modification & Stimulus Reserve “Home Saver” Program a/k/a National Mortgage Modification & Stimulus Relief (“Making Home Affordable”), Toledo, Ohio and Laguna Hills, California; and The Keating Group, Inc. d/b/a National Mortgage Modification Stimulus Relief (“NMMSR”), Sherman Oaks, California and Toledo, Ohio (collectively “Respondents”).  The Notice was the result of an investigation by the Consumer Credit Division.  The Notice alleges that the Respondents engaged in debt negotiation in this state without obtaining the required license, in violation of Section 36a-671(b) of the Connecticut General Statutes.  As part of the Order to Make Restitution, Respondents were ordered to repay fees to an identified Connecticut resident plus interest, and to repay any other Connecticut resident who entered into an agreement for debt negotiation services with Respondent on and after October 1, 2009, any fees paid by such Connecticut resident to Respondents plus interest.  The Commissioner also found that public welfare required the issuance of a Temporary Order to Cease and Desist against Respondents.  Respondents were afforded an opportunity to request a hearing with regard to the allegations set forth in the Notice.
 
 
Notice of Automatic Suspension, Temporary Order to Cease and Desist,
Notice of Intent to Revoke Consumer Collection Agency License,
and Notice of Intent to Issue Order to Cease and Desist
 
On October 17, 2013, the Commissioner issued a Notice of Automatic Suspension, Temporary Order to Cease and Desist, Notice of Intent to Revoke Consumer Collection Agency License, Notice of Intent to Issue Order to Cease and Desist and Notice of Right to Hearing (“Notice”) in the Matter of:  American Collection Systems, Inc. d/b/a American Consumer Solutions (“Respondent”), Westerville, Ohio.  The Notice was the result of an investigation by the Consumer Credit Division.  The Notice alleges that Respondent failed to maintain a surety bond that runs concurrently with the period of its consumer collection agency license for its office located at 811 Greencrest Drive, Westerville, Ohio, in violation of Section 36a-802(a) of the Connecticut General Statutes.  The Commissioner also found that public welfare required the issuance of a Temporary Order to Cease and Desist.  Respondent was afforded an opportunity to request a hearing with regard to the allegation set forth in the Notice.
 

Consent Orders
 
On October 15, 2013, the Commissioner entered into a Consent Order with EFA Processing L.P. (“EFA”), Addison, Texas.  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, on April 1, 2013, 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.  The Commissioner alleged that EFA 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 Connecticut General Statutes.  As part of the Consent Order, EFA agreed to cease and desist from engaging or assisting other persons to engage 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 Connecticut General Statutes, and to pay $175,000 as a civil penalty.
 
On October 17, 2013, the Commissioner entered into a Consent Order with American Lending Solutions, LLC (NMLS # 237361) (“American Lending Solutions”), Columbus, Wisconsin.  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, the Commissioner alleged that American Lending Solutions failed to timely file certain annual  information required by mortgage call reports in violation of Section 36a-534b(c)(3) of the Connecticut General Statutes.  As part of the Consent Order, American Lending Solutions paid $2,500 as a civil penalty.
 
 

        Dated:  Tuesday, November 5, 2013

 
 
       Howard F. Pitkin
       Banking Commissioner