DOB: MortgageIT, Inc. Settlement

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IN THE MATTER OF:

MORTGAGEIT, INC.

    ("MortgageIT")

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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”;

WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking (“Division”), conducted an examination pursuant to Section 36a-17 of the Connecticut General Statutes into the activities of MortgageIT to determine if it had violated, was violating or was about to violate the provisions of the Connecticut General Statutes within the jurisdiction of the Commissioner;

WHEREAS, MortgageIT is a corporation that is currently licensed as a first mortgage lender/broker under Part I(A) of Chapter 668 of the Connecticut General Statutes, “Nondepository First Mortgage Lenders, Brokers and Originators”, and a secondary mortgage lender/broker under Part I(B) of Chapter 668 of the Connecticut General Statutes, “Secondary Mortgage Lenders, Brokers and Originators”;

WHEREAS, as a result of the examination, the Commissioner alleges that MortgageIT employed or retained at least 48 originators without registering them, in violation of Sections 36a-486(b) and 36a 511(b) of the Connecticut General Statutes; 
 
WHEREAS, the Commissioner believes that the Commissioner’s allegations support the initiation of enforcement proceedings against MortgageIT, including proceedings to refuse to renew MortgageIT’s licenses pursuant to Sections 36a-494(a) and 36a-517(a) of the Connecticut General Statutes, issue a cease and desist order against MortgageIT pursuant to Sections 36a-52(a), 36a-494(b) and 36a-517(b) of the Connecticut General Statutes, and impose a civil penalty of up to $100,000 per violation on MortgageIT pursuant to Sections 36a-50(a), 36a-494(b) and 36a-517(b) of the Connecticut General Statutes;

WHEREAS, Section 4-177(c) of the Connecticut General Statutes states, in pertinent part, that “[u]nless precluded by law, a contested case may be resolved by . . . agreed settlement”;

WHEREAS, Section 36a-1-55(a) of the Regulations of Connecticut State Agencies states, in pertinent part, that “[p]ursuant to subsection (c) of section 4-177 of the Connecticut General Statutes, unless precluded by law, any contested case may be resolved by . . . agreed settlement”;

WHEREAS, on April 3, 2007, representatives of MortgageIT met with members of the Division to review the originator registration process;

WHEREAS, on May 31, 2007, MortgageIT made a contribution to the State Regulatory Registry LLC, a wholly-owned subsidiary of the Conference of State Bank Supervisors (“CSBS”), in the amount of Forty-Eight Thousand Dollars ($48,000) to support the Nationwide Mortgage Licensing System, jointly sponsored by CSBS and the American Association of Residential Mortgage Regulators;

WHEREAS, MortgageIT and the Commissioner agree to voluntarily enter into this Settlement Agreement, and the Commissioner agrees that doing so is not precluded by law, and without MortgageIT admitting any allegations set forth herein, and solely for the purposes of obviating the need for formal administrative proceedings concerning the allegations described above;

WHEREAS, MortgageIT, through its execution of this Settlement Agreement, voluntarily agrees to waive any rights to a hearing upon the allegations contained in this Settlement Agreement, and waives the right to seek judicial review or otherwise challenge or contest the validity of this Settlement Agreement;

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 MortgageIT based upon the allegations contained herein.

NOW THEREFORE, the Commissioner and MortgageIT enter into this Settlement Agreement as follows:

1.
MortgageIT shall cease and desist from engaging in acts in violation of Sections 36a-486(b) and 36a-511(b) of the Connecticut General Statutes;  
2. Nothing in this Settlement Agreement shall adversely affect the ability of MortgageIT to apply for, obtain or maintain licenses or renewal licenses under Part I of Chapter 668, Sections 36a-485 to 36a 534a, inclusive, of the Connecticut General Statutes, and to apply for, obtain or maintain registration of its originators from the Commissioner; and
3.
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 MortgageIT to enforce this Settlement Agreement, if the Commissioner determines that MortgageIT is not fully complying with any term or condition stated herein or if any representations made by MortgageIT and reflected herein are subsequently discovered to be untrue.  For purposes of this paragraph, a violation of this Settlement Agreement shall be deemed to be a violation of an order of the Commissioner.
4.
 
 
Nothing in this Settlement Agreement shall be construed to limit or interfere with MortgageIT’s right to take any action or institute formal proceedings for the enforcement of this Settlement Agreement.

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.

Dated at Hartford, Connecticut
this 22nd day of June 2007.                   ________/s/_________
                                                       HOWARD F. PITKIN
                                                       Banking Commissioner


I, Patrick McEnerney, state on behalf of MortgageIT, Inc., that I have read the foregoing Settlement Agreement; that I know and fully understand its contents; that I am authorized to execute this Settlement Agreement on behalf of MortgageIT, Inc.; that MortgageIT, Inc. agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that MortgageIT, Inc. voluntarily agrees to enter into this Settlement Agreement, expressly waiving any right to a hearing on the matters described herein.


 By:  __________/s/___________
 Patrick McEnerney
 Managing Director
 MortgageIT, Inc.


State of:  New York

County of:  New York


On this the 14th day of June 2007, before me, Mary Doherty, the undersigned officer, personally appeared Patrick McEnerney who acknowledged himself to be the Managing Director of MortgageIT, Inc., a corporation, and that he, as such Managing Director, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself as Managing Director.

 In witness whereof I hereunto set my hand.

 ___________/s/__________
 Notary Public
 Date Commission Expires:  October 30, 2010


 


Administrative Orders and Settlements