DOB: A+ Mortgage Services, LLC

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IN THE MATTER OF:

A+ MORTGAGE SERVICES, LLC

    ("A+MS")

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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, conducted an examination pursuant to Section 36a-17 of the Connecticut General Statutes into the activities of A+MS 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, A+MS is a limited liability company that is currently licensed as a first mortgage correspondent 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 correspondent 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 A+MS employed or retained at least two (2) 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 A+MS, including proceedings to revoke A+MS’s licenses pursuant to Sections 36a- 494(a) and 36a-517(a) of the Connecticut General Statutes, issue a cease and desist order against A+MS pursuant to Section 36a-52(a) of the Connecticut General Statutes and section 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 A+MS pursuant to Section 36a-50(a) of the Connecticut General Statutes and sections 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”; 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, A+MS agrees to voluntarily enter into this Settlement Agreement without admitting or denying any allegations set forth herein, and solely for the purposes of obviating the need for formal administrative proceedings concerning the allegations described above;

WHEREAS, A+MS, 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 A+MS based upon the allegations contained herein.

NOW THEREFORE, the Commissioner and A+MS enter into this Settlement Agreement as follows:

1. No later than the date this Settlement Agreement is executed by A+MS, A+MS shall remit to the Department of Banking, by cashier’s or certified check made payable to “Treasurer, State of Connecticut”, the sum of Two Thousand Dollars ($2,000.00) as a civil penalty; and 
2. 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 A+MS to enforce this Settlement Agreement, if the Commissioner determines that A+MS is not fully complying with any term or condition stated herein or if any representations made by A+MS 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.

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 8th of November 2007                 ________/s/_________
                                                    HOWARD F. PITKIN
                                                    Banking Commissioner

I, David Karat, state on behalf of A+ Mortgage Services, LLC, 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 A+ Mortgage Services, LLC; that A+ Mortgage Services, LLC agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that A+ Mortgage Services, LLC voluntarily agrees to enter into this Settlement Agreement, expressly waiving any right to a hearing on the matters described herein.


By:  ___________/s/___________
      David Karat
      Member Managed
      A+ Mortgage Services, LLC

                                             
State of:  Connecticut

County of:  Hartford


On this the 6th day of November, 20007, before me, Erica Floyd, the undersigned officer, personally appeared David Karat who acknowledged himself to be the Member Managed of A+ Mortgage Services, LLC, a member managed limited liability company, and that he, as such Member Managed, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the limited liability company by himself as Member Managed.

In witness whereof I hereunto set my hand.


 _______________/s/______________
 Notary Public
 Date Commission Expires:  August 31, 2012

 


Administrative Orders and Settlements