The Department of Banking News Bulletin
Bulletin # 2772
Week Ending April 7, 2017
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 Jorge L. Perez, Banking Commissioner, Department of Banking, 260 Constitution Plaza, Hartford, CT 06103-1800. Written comments will be considered only if they are received within ten days from the date of this bulletin.
STATE BANK ACTIVITY
Out-of-State Trust Company
On April 6, 2017, Plimoth Trust Company LLC ("Plimoth") filed an application pursuant to Connecticut General Statutes Section 36a-434a to establish a trust office at 107 Wilcox Road, Suite 101 in Stonington, Connecticut. Plimoth is a Maine-chartered nondepository trust company headquartered in Plymouth, Massachusetts that does business as Plimoth Investment Advisors and is jointly owned by Dedham Institution for Savings, a Massachusetts-chartered mutual savings bank and Baycoast Bank, a Massachusetts-chartered stock savings bank and wholly owned subsidiary of Narragansett Financial Corp., a Massachusetts mutual holding company.
CONSUMER CREDIT DIVISION ACTIVITY
On April 5, 2017, the Commissioner entered into a Consent Order with Total Mortgage Services, LLC
(NMLS # 2764) (“Total Mortgage”), Milford, Connecticut. The Consent Order was based on an examination by the Consumer Credit Division. As a result of the examination, the Commissioner alleged that Total Mortgage engaged the services of mortgage loan originators who were not licensed; assisted persons in the business as mortgage loan originators without valid licenses; employed a branch manager who failed to meet statutory requirements; engaged in the business of making residential mortgage loans from a branch office that was not licensed; and altered loan file documents. The Commissioner further alleged that the foregoing, if any were found to be true, would render the Commissioner unable to continue to find that Total Mortgage demonstrates the character and general fitness such as to command the confidence of the community and to warrant a determination that it will operate honestly, fairly and efficiently, which could support, among other things, a notice of intent to revoke or refuse to renew Total Mortgage’s mortgage lender license.
As part of the Consent Order, Total Mortgage agreed to: (1) create a “zero tolerance” policy forbidding alteration or changes to documents signed by mortgage applicants; (2) create and implement a comprehensive compliance plan designed to ensure that Total Mortgage’s operations will comply with all applicable Connecticut and federal financial consumer protection laws and regulations and the terms of the Consent Order, which plan must include mandatory business ethics education for employees greater than required by law and comprehensive internal audit and risk management programs; (3) hire a chief compliance officer; (4) submit 25% of its Connecticut loans to an external independent audit firm to further assess Total Mortgage’s compliance with mortgage laws; (5) submit quarterly reports to the Commissioner about its implementation of the Consent Order; and(6) require its employees with supervisory authority to report to their managers or supervisors that they are overseeing the activities of their subordinates. Total Mortgage also agreed to distribute the Consent Order to each of its employees. Lastly, Total Mortgage agreed to not violate any of the relevant statutes underlying its mortgage business and paid a $350,000 civil penalty.
Dated: Wednesday, April 12, 2017
Jorge L. Perez