DOB: L & S Mortgage, LLC, Settlement Agreement

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IN THE MATTER OF:

L & S MORTGAGE, LLC

    ("L & S")

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SETTLEMENT AGREEMENT

WHEREAS, on July 12, 2007, the Banking Commissioner (“Commissioner”), acting pursuant to Sections 36a-52(a) and 36a-50(a) of the Connecticut General Statutes and Sections 36a-51, 36a-494, and 36a-517 of the Connecticut General Statutes, as amended by Public Act 07-91, issued a Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Revoke First Mortgage Broker and Secondary Mortgage Broker Licenses, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (collectively “Notice”) against L & S, which Notice is incorporated herein by reference;
 
WHEREAS, the Notice alleges that the following conduct forms the basis to issue an order to cease and desist against L & S, revoke L & S’s first mortgage broker and secondary mortgage broker licenses and impose a civil penalty pursuant to Sections 36a-52(a) and 36a-50(a) of the Connecticut General Statutes and Sections 36a-51, 36a-494 and 36a-517 of the Connecticut General Statutes, as amended:

1. L & S made material misstatements concerning litigation in renewal applications, which constitute violations of Section 36a-53a of the Connecticut General Statutes;
2. L & S failed to pay five civil judgments, which constitutes a basis to revoke Respondent’s first mortgage broker and secondary mortgage broker licenses pursuant to Section 52-400e of the Connecticut General Statutes;
3. L & S failed to maintain the required tangible net worth in violation of Sections 36a-488(a)(2) and 36a-513(a)(2) of the Connecticut General Statutes;
4. L & S acted as a first mortgage broker and a secondary mortgage broker at three locations without obtaining licenses for such locations in violation of Sections 36a-490(a) and 36a-515(a) of the Connecticut General Statutes;
5. L & S failed to register 33 loan originators in violation Sections 36a-486(b) and 36a-511(b) of the Connecticut General Statutes; and
6. L & S took loan applications with false statements concerning renting of property from two borrowers, and obtained false verifications of rent, which constitute violations of Sections 36a-53b and 36a-56 of the Connecticut General Statutes;

WHEREAS, on July 13, 2007, the Notice was sent by registered mail, return receipt requested, to L & S (Registered Mail No. RB028033975US);
 
WHEREAS, on July 18, 2007, L & S received the Notice;
 
WHEREAS, on July 25, 2007, L & S requested a hearing on the Notice, which is currently scheduled for March 10, 2008;
 
WHEREAS, Section 4-177(c) of the Connecticut General Statutes and Section 36a-1-55(a) of the Regulations of Connecticut State Agencies provide that a contested case may be resolved by agreed settlement, unless precluded by law;
 
WHEREAS, L & S and Dennis Carr, member and Vice President of L & S, voluntarily agree to enter into this Settlement Agreement without admitting or denying any allegations contained in the Notice, and solely for the purposes of obviating the need for formal administrative proceedings concerning the allegations contained in the Notice;
 
WHEREAS, with respect to the allegations contained in the Notice, L & S and Dennis Carr agree to waive any rights to a hearing pursuant to Sections 36a-52(a) and 36a-50(a) of the Connecticut General Statutes and Section 36a-51 of the Connecticut General Statutes, as amended; proceedings before a presiding officer; a proposed final decision by a presiding officer; a final decision by the Commissioner; all post-hearing procedures; and waive 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 L & S and Dennis Carr based upon the allegations contained in the Notice.
 
NOW THEREFORE, the Commissioner, L & S and Dennis Carr enter into this Settlement Agreement as follows:

1. L & S shall cease and desist from violating Sections 36a-53a, 36a-53b, 36a-56, 36a-486(b), 36a-488(a)(2), 36a-490(a), 36a-511(b), 36a-513(a)(2) and 36a-515(a) of the Connecticut General Statutes;
2. No later than the date this Settlement Agreement is executed by L & S and Dennis Carr, L & S shall remit to the Department of Banking, by cashier’s check, certified check or money order made payable to “Treasurer, State of Connecticut”, the sum of Ten Thousand Dollars ($10,000) as a civil penalty;
3. No later than the date this Settlement Agreement is executed by L & S and Dennis Carr, L & S shall surrender its license to the Division;
4. Dennis Carr shall not engage in any activity in the mortgage business that requires registration or licensure under Title 36a of the Connecticut General Statutes without first being registered or obtaining the required license from the Commissioner, and shall not apply to the Commissioner for any registration or license to engage in such activity for a two-year period commencing with the execution of this Settlement Agreement by the Commissioner.  The allegations in this matter shall not be a basis for the denial of any such registration or license;
5. 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 L & S or Dennis Carr to enforce this Settlement Agreement, if the Commissioner determines that L & S or Dennis Carr is not fully complying with any term or condition stated herein or if any representation made by L & S or Dennis Carr and reflected herein is 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; and
6. This Settlement Agreement shall not preclude any party from asserting any rights or pursuing any remedies in the event that the Commissioner commences any proceedings against L & S for acts or omissions not specifically addressed in this Settlement Agreement, or for acts and omissions that do not arise from the facts or transactions addressed herein.
 
IN WITNESS WHEREOF, the parties and Dennis Carr 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 11th day of March 2008.        

________/s/_________
Howard F. Pitkin
Banking Commissioner


I, Lamont A. Wright, state on behalf of L & S Mortgage, 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 L & S Mortgage, LLC; and that L & S Mortgage, LLC agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein.

                                           By:  ________/s/_________
                                                 Lamont A. Wright
                                                 President/Member
                                                 L & S Mortgage, LLC

State of:  Conn.

County of:  New Haven


On this the 6th day of March 2008, before me, Robert A. Perrotti, the undersigned officer, personally appeared Lamont A. Wright, who acknowledged himself to be the President/Member of L & S Mortgage, LLC, a limited liability company, and that he, as such President/Member, 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 President/Member.
 
In witness whereof I hereunto set my hand.

                                                 ________/s/_________
                                                 Commissioner of the Superior Court
                                                 Robert A. Perrotti


 

I, Dennis Carr, state that I have read the foregoing Settlement Agreement; that I know and fully understand its contents; and that I agree freely and without threat or coercion of any kind to comply with the terms and conditions stated herein.


                                                 ________/s/_________
                                                 Dennis Carr


State of:  Conn.

County of:  New Haven


On this the 6th day of March 2008, before me, Robert A. Perrotti, the undersigned officer, personally appeared Dennis Carr, known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument and acknowledged that he executed the same for the purposes therein contained.
 
In witness whereof I hereunto set my hand.

                                                 ________/s/_________
                                                 Commissioner of the Superior Court
                                                 Robert A. Perrotti


Administrative Orders and Settlements