DOB: Greenwich Mortgage Corporation d/b/a Greenwich Home Mortgage Corporation, Settlement Agreement and Withdrawal of Notice of Automatic Suspension

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IN THE MATTER OF:

GREENWICH MORTGAGE
CORPORATION d/b/a GREENWICH
HOME MORTGAGE CORPORATION

    ("GREENWICH")

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SETTLEMENT AGREEMENT

AND

WITHDRAWAL OF NOTICE OF
AUTOMATIC SUSPENSION 

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 Greenwich 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 Section 36a-492(b) of the Connecticut General Statutes and Sections 36a-494(a)(1)(C) and 36a-51 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 Lender/Broker License and Notice of Right to Hearing (collectively “Notice”) against Greenwich, which Notice is incorporated herein by reference;
 
WHEREAS, the Notice alleges that Greenwich, 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 Greenwich to engage in the business of a first mortgage lender/broker in Connecticut from 345 Hope Street, Providence, Rhode Island;
 
WHEREAS, on February 2, 2008, Greenwich received the Notice;
 
WHEREAS, on February 11, 2008 Greenwich requested a hearing on the Notice, which hearing is currently scheduled for May 15, 2008;
 
WHEREAS, on May 5, 2008, Greenwich filed with the Commissioner a replacement bond numbered 024028840 issued by Liberty Mutual Insurance Company;
 
WHEREAS, on March 7, 2008, Greenwich specifically assured the Commissioner that it has not engaged in the business of a first mortgage lender/broker in Connecticut from 345 Hope Street, Providence, Rhode Island, since the expiration of its surety bond on December 25, 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, Greenwich agrees to voluntarily enter into this Settlement Agreement and Withdrawal of Notice of Automatic Suspension (“Settlement Agreement and Withdrawal”) solely for the purpose of obviating the need for formal administrative proceedings concerning the allegation contained in the Notice;
 
WHEREAS, Greenwich, through its execution of this Settlement Agreement and Withdrawal, voluntarily agrees to waive any rights to a hearing upon the allegation contained in the Notice, and waives the right to seek judicial review or otherwise challenge or contest the validity of this Settlement Agreement and Withdrawal;
 
AND WHEREAS, upon the entry of this Settlement Agreement and Withdrawal, this matter will be resolved and the Commissioner will not take any future enforcement action against Greenwich based upon the allegation contained in the Notice.
 
NOW THEREFORE, the Commissioner and Greenwich enter into this Settlement Agreement and Withdrawal as follows:

1. Greenwich shall cease and desist from violating Section 36a-492(a) of the 2008 Supplement to the General Statutes and agrees to maintain surety bonds that run concurrently with any license issued to Greenwich under Part I(A) of Chapter 668 of the Connecticut General Statutes;
2. Nothing in this Settlement Agreement and Withdrawal shall adversely affect the ability of Greenwich to apply for or obtain a license or renewal license under Part I of Chapter 668 of the Connecticut General Statutes in the future;
3. The Notice of Automatic Suspension of the license of Greenwich Mortgage Corporation d/b/a Greenwich Home Mortgage Corporation to engage in the business of a first mortgage lender/broker in Connecticut from 345 Hope Street, Providence, Rhode Island, issued on January 30, 2008, is hereby WITHDRAWN; and
4. Notwithstanding anything to the contrary in this Settlement Agreement and Withdrawal, execution of this Settlement Agreement and Withdrawal is without prejudice to the right of the Commissioner to take enforcement action against Greenwich to enforce this Settlement Agreement and Withdrawal if the Commissioner determines that Greenwich is not fully complying with any term or condition stated herein or if any representation made by Greenwich and reflected herein is subsequently discovered to be untrue.  For purposes of this paragraph, a violation of this Settlement Agreement and Withdrawal shall be deemed to be a violation of an order of the Commissioner.

IN WITNESS WHEREOF, the parties hereto have caused this Settlement Agreement and Withdrawal to be executed by each of them or their duly authorized representatives on the dates hereinafter subscribed.


Dated at Hartford, Connecticut
this 19th day of May 2008.        

________/s/_________
Howard F. Pitkin
Banking Commissioner



I, Neil H. Saunders, state on behalf of Greenwich Mortgage Corporation d/b/a Greenwich Home Mortgage Corporation that I have read the foregoing Settlement Agreement and Withdrawal; that I know and fully understand its contents; that I am authorized to execute this Settlement Agreement and Withdrawal on behalf of Greenwich Mortgage Corporation d/b/a Greenwich Home Mortgage Corporation; and that Greenwich Mortgage Corporation d/b/a Greenwich Home Mortgage Corporation agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein.

                                          
                                           By:  ________/s/_________
                                                 Name:  Neil H. Saunders 
                                                 Title:  President
                                                 Greenwich Mortgage Corporation d/b/a
                                                 Greenwich Home Mortgage Corporation



State of:  Rhode Island

County of:  Providence


On this the 15 day of May 2008, before me, John Girouard, the undersigned officer, personally appeared Neil H. Saunders, who acknowledged himself to be the President of Greenwich Mortgage Corporation d/b/a Greenwich Home 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 President.

In witness whereof I hereunto set my hand.

                                           ________/s/_________
                                           Notary Public
                                           Date Commission Expires:  4-10-10


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