I. LEGAL AUTHORITY AND JURISDICTION

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".

Pursuant to the authority granted by Section 36a-17 of the Connecticut General Statutes, the Commissioner, through the Consumer Credit Division of the Department of Banking, has investigated the activities of Respondent to determine if it has violated, is violating or is about to violate the provisions of the Connecticut General Statutes. Section 36a-17(a) of the Connecticut General Statutes states that:

The commissioner, in the commissioner's discretion, may make such public or private investigations or examinations within or outside this state, concerning any person subject to the jurisdiction of the commissioner, as the commissioner deems necessary to carry out the duties of the commissioner.

Section 36a-52(a) of the Connecticut General Statutes states, in pertinent part, that:

Whenever it appears to the commissioner that any person has violated, is violating or is about to violate any provision of the general statutes within the jurisdiction of the commissioner, . . . the commissioner may send a notice to such person by registered or certified mail, return receipt requested, or by any express delivery carrier that provides a dated delivery receipt. The notice shall be deemed received by the person on the earlier of the date of actual receipt, or seven days after mailing or sending. Any such notice shall include: (1) A statement of the time, place, and nature of the hearing; (2) a statement of the legal authority and jurisdiction under which the hearing is to be held; (3) a reference to the particular sections of the general statutes . . . alleged to have been violated; (4) a short and plain statement of the matters asserted; and (5) a statement indicating that such person may file a written request for a hearing on the matters asserted within fourteen days of receipt of the notice. If a hearing is requested within the time specified in the notice, the commissioner shall hold a hearing upon the matters asserted in the notice, unless the person fails to appear at the hearing. After the hearing, the commissioner shall determine whether an order to cease and desist should be issued against the person named in the notice. If the person does not request a hearing within the time specified in the notice or fails to appear at the hearing, the commissioner shall issue an order to cease and desist against the person. No such order shall be issued except in accordance with the provisions of chapter 54.

II. MATTERS ASSERTED

III. STATUTORY BASIS FOR ORDER TO CEASE AND DESIST

Section 36a-485(6) of the Connecticut General Statutes states that:

"First mortgage loan" means a loan or an extension of credit, including, but not limited to, an extension of credit pursuant to a contract or an assigned contract for the sale of goods or services, made to a natural person, the proceeds of which are to be used primarily for personal, family or household purposes, and which is secured by a first mortgage upon any interest in one-to-four-family residential owner-occupied real property located in this state which is not subject to any prior mortgages and includes the renewal or refinancing of an existing first mortgage loan[.]

Section 36a-486(a) of the Connecticut General Statutes states, in pertinent part, that:

No 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-498, inclusive.

Section 36a-510(10) of the Connecticut General Statutes states that:

"Secondary mortgage loan" means (A) a loan or an extension of credit, including, but not limited to, an extension of credit pursuant to a contract or an assigned contract for the sale of goods or services, made to a person, the proceeds of which are to be used primarily for personal, family or household purposes, and which is secured in whole or in part by a mortgage upon any interest in one-to-four-family residential owner-occupied real property located in this state, provided such real property is subject to one or more prior mortgages, and (B) the renewal or refinancing of any existing loan or extension of credit described in subparagraph (A) of this subdivision[.]

Section 36a-511(a) of the Connecticut General Statutes states, in pertinent part, that:

No 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.

IV. NOTICE OF INTENT TO ISSUE ORDER TO CEASE AND DESIST
AND NOTICE OF RIGHT TO HEARING

The Commissioner has determined that Respondent has violated, is violating or is about to violate Sections 36a-486(a) and 36a-511(a) of the Connecticut General Statutes, which violations constitute sufficient grounds to issue an order to cease and desist for violating Sections 36a-486(a) and 36a-511(a) of the Connecticut General Statutes.

A hearing will be granted to Respondent if a written request for a hearing is received by the Department of Banking, Legal Division, 260 Constitution Plaza, Hartford, Connecticut 06103-1800 within fourteen (14) days following its receipt of this Notice of Intent to Issue Order to Cease and Desist and Notice of Right to Hearing as set forth in Section 36a-52(a) of the Connecticut General Statutes. This Notice of Intent to Issue Order to Cease and Desist and Notice of Right to Hearing shall be deemed received on the earlier of the date of actual receipt, or seven days after mailing or sending. The enclosed Appearance and Request for Hearing Form must be completed and mailed to the above address. If you will be not be represented by an attorney at the hearing, please complete the Appearance and Request for Hearing Form as "pro se". If a hearing is requested, the hearing will be held on December 2, 2003, at 10 a.m., at the Department of Banking, 260 Constitution Plaza, Hartford, Connecticut.

The hearing will be held in accordance with the provisions of Chapter 54 of the Connecticut General Statutes. At such hearing, Respondent will have the right to appear and present evidence, rebuttal evidence and argument on all issues of fact and law to be considered by the Commissioner. Once a written request for hearing is received, the Commissioner shall issue a notice of hearing at least fourteen (14) days prior to a hearing in accordance with Section 4-177 of the Connecticut General Statutes and Section 36-1-17 of the Regulations of Connecticut State Agencies.

If a hearing is not requested within the time prescribed, the Commissioner will issue an order that you CEASE AND DESIST from violating the provisions of the Connecticut General Statutes and comply with the provisions of the Connecticut General Statutes, including, without limitation, Section 36a-486(a) of the Connecticut General Statutes, which prohibits any person from engaging in the business of making first mortgage loans or acting as a first mortgage broker in this state unless such person has first obtained the required license, and Section 36a-511(a) of the Connecticut General Statutes, which prohibits any person from engaging in the business of making secondary mortgage loans or acting as a secondary mortgage loan broker unless such person has first obtained the required license.

________/s/_________
John P. Burke
Banking Commissioner

Dated at Hartford, Connecticut
this 30th day of September 2003.

CERTIFICATION

I hereby certify that on this 30th day of September 2003, the foregoing Notice of Intent to Issue Order to Cease and Desist and Notice of Right to Hearing was sent by registered mail, return receipt requested, to National City Mortgage Co., 3232 Newmark Drive, Miamisburg, Ohio 45342, registered mail no. RB052355035US; National City Mortgage Co., P.O. Box 1820, Dayton, Ohio 45401-1820, registered mail no. RB052355049US; and National City Mortgage Co., National City Center, 1900 East Ninth Street, Cleveland, Ohio 44114-3484, registered mail no. RB052355052US.

Philip L. Dukes
Prosecuting Attorney

Administrative Orders and Settlements