DOB: Penn Funding Services, Inc., Settlement Agreement

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IN THE MATTER OF:

PENN FUNDING SERVICES, INC.

    ("Penn Funding")

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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 Penn Funding 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 February 25, 2008, acting pursuant to Sections 36a-494(a)(1)(C), 36a-492(b) and 36a-51 of the 2008 Supplement to the General Statutes, the Commissioner issued a Notice of Automatic Suspension, Notice of Intent to Revoke First Mortgage Broker License and Notice of Right to Hearing (collectively “Notice”) against Penn Funding, which Notice is incorporated herein by reference;
 
WHEREAS, the Notice alleged that Penn Funding, in violation of Section 36a-492(a) of the 2008 Supplement to the General Statutes, failed to maintain a surety bond that runs concurrently with the period of the license granted to Penn Funding to act as a first mortgage broker in Connecticut from 612 Second Street Pike, Southampton, Pennsylvania;
 
WHEREAS, on March 10, 2008, Penn Funding received the Notice, and no request for a hearing was received by the Commissioner;
 
WHEREAS, on March 12, 2008, Penn Funding informed the Commissioner by letter dated December 20, 2007, that it ceased acting as a first mortgage broker in Connecticut from 612 Second Street Pike, Southampton, Pennsylvania, effective December 31, 2007;
 
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, Penn Funding 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, Penn Funding, 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 Penn Funding based upon the allegations contained in the Notice.
 
NOW THEREFORE, the Commissioner and Penn Funding enter into this Settlement Agreement as follows:

1. Prior to the date this Settlement Agreement is executed by the Commissioner, Penn Funding will surrender its first mortgage broker license No. 18392 in Connecticut and cease engaging in the business of a first mortgage broker in Connecticut from 612 Second Street Pike, Southampton, Pennsylvania;
2. Nothing in this Settlement Agreement shall adversely affect the ability of Penn Funding 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 Penn Funding to enforce this Settlement Agreement if the Commissioner determines that Penn Funding is not fully complying with any term or condition stated herein or if any representation made by Penn Funding 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 28th day of April 2008.        

________/s/_________
Howard F. Pitkin
Banking Commissioner


I, Lana Kagan, state on behalf of Penn Funding Services, 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 Penn Funding Services, Inc.; and that Penn Funding Services, Inc., agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein.

                                          By:  ________/s/_________
                                                 Name:  Lana Kagan
                                                 Title:  VP
                                                 Penn Funding Services, Inc.

State of:  PA

County of:  Bucks


On this the 12 day of April, before me, Elena Kosenko, the undersigned officer, personally appeared Lana Kagan, who acknowledged herself to be the VP of Penn Funding Services, Inc., a Pennsylvania corporation, and that she, as such VP, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by herself as VP.
 
In witness whereof I hereunto set my hand.

                                                 ________/s/_________
                                                 Notary Public
                                                 Date Commission Expires:  3/25/2009


Administrative Orders and Settlements