DOB: First World Mortgage Corporation

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IN THE MATTER OF:

FIRST WORLD MORTGAGE CORPORATION

    ("FIRST WORLD")

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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 First World 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, First World 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 First World employed or retained at least four (4) 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 First World, including proceedings to revoke First World’s licenses pursuant to Sections 36a-494(a) and 36a-517(a) of the Connecticut General Statutes, issue a cease and desist order against First World 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 First World 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 November 30, 2007, First World 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 Four Thousand Dollars ($4,000) to support the Nationwide Mortgage Licensing System, jointly sponsored by CSBS and the American Association of Residential Mortgage Regulators;

WHEREAS, First World 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 First World 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, First World, 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 First World based upon the allegations contained herein.

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

1. First World shall cease and desist from engaging in acts in violation of Sections 36a-486(b) and 36a-511(b) of the Connecticut General Statutes; and
2. Nothing in this Settlement Agreement shall adversely affect the ability of First World 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 First World to enforce this Settlement Agreement, if the Commissioner determines that First World is not fully complying with any term or condition stated herein or if any representations made by First World 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 First World’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 1st day of February 2008.                  ________/s/_________
                                                          HOWARD F. PITKIN
                                                          Banking Commissioner


I, Frank J. Sidoti, Jr., state on behalf of First World Mortgage Corporation 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 First World; that First World agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that First World voluntarily agrees to enter into this Settlement Agreement, expressly waiving any right to a hearing on the matters described herein.


By:  ________/s/__________
Frank J. Sidoti, Jr.
President
First World Mortgage Corporation
127 Prospect Avenue
West Hartford, CT 06106


State of:  CT

County of:  Hartford


On this the 29th day of January 2008, before me, the undersigned officer, personally appeared Frank J. Sidoti, Jr. who acknowledged himself to be the President of First World Mortgage Corporation, a corporation, and that he, as such President, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself as Frank J. Sidoti, Jr., President of First World Mortgage Corporation.

In witness whereof I hereunto set my hand.

_________/s/__________
Notary Public
Date Commission Expires: June 30, 2009

 


Administrative Orders and Settlements