DOB: American Home Mortgage Settlement Agreement

 

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IN THE MATTER OF:

AMERICAN HOME MORTGAGE
CORP. OF NEW YORK
d/b/a AMERICAN HOME MORTGAGE

    ("American Home Mortgage")

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SETTLEMENT AGREEMENT

WHEREAS, the Banking Commissioner ("Commissioner") is charged with the administration of Part I of Chapter 668, Sections 36a-485 to 36a-534a, inclusive, of the Connecticut General Statutes, "Mortgage Lenders, Brokers and Originators" ("Act");

WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking ("Department"), conducted an investigation pursuant to Section 36a-17 of the Connecticut General Statutes into the activities of American Home Mortgage to determine if it had violated, was violating or was about to violate the provisions of the Connecticut General Statutes;

WHEREAS, Section 36a-486(a) of the Act states, in pertinent part, that "[n]o person shall engage in the business of making first mortgage loans or act as a first mortgage broker in this state unless such person has first obtained the required license in accordance with the provisions of sections 36a-485 to 36a-498a, inclusive";

WHEREAS, Section 36a-490(a) of the Act states, in pertinent part, that "[i]f the licensee desires to make first mortgage loans in more than one location or to act as a first mortgage broker in more than one location, the licensee shall procure a license for each location where the business is to be conducted";

WHEREAS, Section 36a-511(a) of the Act states, in pertinent part, that: "[n]o person shall engage in the business of making secondary mortgage loans or act as a secondary mortgage broker unless such person has first obtained the required license under sections 36a 510 to 36a-524, inclusive";

WHEREAS, Section 36a-515(a) of the Act states, in pertinent part, that "[i]f the licensee desires to make secondary mortgage loans in more than one location or to act as a mortgage broker in more than one location, the licensee shall procure a license for each location where the business is to be conducted";

WHEREAS, on January 18, 2005, the Department received applications from American Home Mortgage to open a first and secondary mortgage lender/broker office to be located at 29 Broadway Avenue, Mystic, Connecticut;

WHEREAS, as a result of the Department's investigation, the Department alleges that American Home Mortgage has operated a first and secondary mortgage lender/broker office at 29 Broadway Avenue, Mystic, Connecticut, without the required licenses;

WHEREAS, American Home Mortgage's making of first and secondary mortgage loans at 29 Broadway Avenue, Mystic, Connecticut, without the required licenses for that location constitutes a basis to issue an order to cease and desist from violating Sections 36a-490(a) and 36a-515(a) of the Act pursuant to Section 36a-52 of the Connecticut General Statutes, and for the imposition of a civil penalty against American Home Mortgage pursuant to Section 36a-50 of the Connecticut General Statutes;

WHEREAS, American Home Mortgage agrees to voluntarily enter into this Settlement Agreement without admitting or denying the allegations contained herein, and solely for the purpose of obviating the need for formal administrative proceedings concerning the allegations contained herein;

AND WHEREAS, upon the entry of this Settlement Agreement, this matter will be resolved and the Commissioner will not take any future enforcement action against American Home Mortgage based upon the allegations contained herein.

NOW THEREFORE, the Commissioner and American Home Mortgage enter into this Settlement Agreement as follows:

1. No later than the date this Settlement Agreement is executed by American Home Mortgage, American Home Mortgage shall remit to the Department of Banking, by certified or bank check made payable to "Treasurer, State of Connecticut", the sum of Nine Thousand Dollars ($9,000) as a civil penalty;
2. American Home Mortgage shall not engage in the business of making first or secondary mortgage loans or act as a first or secondary mortgage broker in Connecticut without the required license for each location where the business is to be conducted and shall not employ or retain an originator without first registering such originator under the Act;
3. Nothing in this Settlement Agreement shall adversely affect the ability of American Home Mortgage to apply for or obtain a license or renewal of a license from the Department in the future; and
4. Notwithstanding anything to the contrary in this Settlement Agreement, execution of this Settlement Agreement is without prejudice to the right of the Commissioner to take enforcement action against American Home Mortgage to enforce this Settlement Agreement if the Commissioner determines that American Home Mortgage is not fully complying with any term or condition contained herein.

IN WITNESS WHEREOF, the parties hereto have caused this Settlement Agreement to be executed by each of them or their duly authorized representatives on the dates hereinafter subscribed.

________/s/_________
John P. Burke
Banking Commissioner

Dated at Hartford, Connecticut
this 11th day of July 2005.

 

I, Alan B. Horn, state on behalf of American Home Mortgage Corp. of New York d/b/a American Home Mortgage, that I have read the foregoing Settlement Agreement; that I know and fully understand its contents; that I am authorized to execute this Consent Order on behalf of American Home Mortgage Corp. of New York d/b/a American Home Mortgage; that American Home Mortgage Corp. of New York d/b/a American Home Mortgage agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that American Home Mortgage Corp. of New York d/b/a American Home Mortgage voluntarily agrees to enter into this Settlement Agreement, expressly waiving any right to a hearing on the matters described herein.

By: /s/______________________________________
Name: Alan B. Horn
Title: Executive, VP, Secretary
American Home Mortgage Corp. of New York
d/b/a American Home Mortgage

State of: New York

County of: Suffolk

On this the 6th day of July 2005, before me, Vivian Sin, the undersigned officer, personally appeared Alan B. Horn, who acknowledged himself/herself to be the Secretary, EVP of American Home Mortgage Corp. of New York d/b/a American Home Mortgage, a corporation, and that he/she, as such Secretary, EVP, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself/herself as Alan B. Horn, Secretary, EVP.

In witness whereof I hereunto set my hand.

/s/_______________________________________
Notary Public
Date Commission Expires:


Administrative Orders and Settlements