DOB: Merchants Home Loan, Inc., Settlement Agreement

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IN THE MATTER OF:

MERCHANTS HOME LOAN, INC.

    ("Merchants")

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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 investigation pursuant to Section 36a-17 of the Connecticut General Statutes into the activities of Merchants 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, on January 30, 2008, acting pursuant to Sections 36a-492(b) of the Connecticut General Statutes, and Sections 36a-494(a)(1)(C) and 36a-51(a) of the Connecticut General Statutes, as amended by Public Act 07-91, the Commissioner issued a Notice of Automatic Suspension, Notice of Intent to Revoke First Mortgage Correspondent Lender/Broker License and Notice of Right to Hearing (collectively “Notice”) against Merchants, which Notice is incorporated herein by reference;
 
WHEREAS, the Notice alleged that Merchants, in violation of Section 36a-492(a) of the Connecticut General Statutes, failed to maintain a surety bond that runs concurrently with the period of the license granted to Merchants to engage in the business of a first mortgage correspondent lender/broker in Connecticut from 1600 South Airport Freeway, Suite 209, Bedford, Texas;
 
WHEREAS, on February 12, 2008, Merchants received the Notice, and no request for a hearing was received by the Commissioner;
 
WHEREAS, on February 14, 2008, Merchants specifically assured the Commissioner that it has not engaged in the business of a first mortgage correspondent lender/broker in Connecticut from 1600 South Airport Freeway, Suite 209, Bedford, Texas, since January 1, 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, Merchants agrees to voluntarily enter into this Settlement Agreement without admitting or denying any allegations contained in the Notice set forth herein, and solely for the purpose of obviating the need for formal administrative proceedings concerning the allegation described above;
 
WHEREAS, Merchants, through its execution of this Settlement Agreement, voluntarily agrees to waive any rights to a hearing upon the allegations contained in the Notice, 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 Merchants based upon the allegations contained in the Notice.
 
NOW THEREFORE, the Commissioner and Merchants enter into this Settlement Agreement as follows:

1. Prior to the date this Settlement Agreement is executed by the Commissioner, Merchants will surrender its first mortgage correspondent lender/broker license No. 17887 in Connecticut and cease engaging in the business of a first mortgage lender/broker in Connecticut from 1600 South Airport Freeway, Suite 209, Bedford, Texas;
2. Nothing in this Settlement Agreement shall adversely affect the ability of Merchants to apply for or obtain a license or renewal license under Part I of Chapter 668 of the Connecticut General Statutes in the future; 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 Merchants to enforce this Settlement Agreement if the Commissioner determines that Merchants is not fully complying with any term or condition stated herein or if any representation made by Merchants 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.

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 27th day of March 2008.             ________/s/_________
                                                    Howard F. Pitkin
                                                    Banking Commissioner

 

I, William K. Marshall, state on behalf of Merchants Home Loan, 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 Merchants Home Loan, Inc.; and that Merchants Home Loan, Inc., agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein.


 By:  ________/s/_________
       William K. Marshall
       Managing Director
       Merchants Home Loan, Inc.


State of:  California

County of:  San Diego


On this the 14 day of March 2008, before me, Mirella Cota Notary Public, the undersigned officer, personally appeared William K. Marshall, who acknowledged himself to be the Managing Director of Merchants Home Loan, Inc., a Texas 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 / Commissioner of the Superior Court
  Date Commission Expires:  Nov. 18, 2011 


Administrative Orders and Settlements