DOB: Main Street Mortgage, LLC, Settlement Agreement

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IN THE MATTER OF:

MAIN STREET MORTGAGE, LLC

    ("Main Street")

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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 investigation pursuant to Section 36a-17 of the Connecticut General Statutes into the activities of Main Street 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, Main Street is a corporation that is currently licensed as a first mortgage broker under Part I(A) of Chapter 668 of the Connecticut General Statutes, “Nondepository First Mortgage Lenders, Brokers and Originators”, and a secondary mortgage 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 investigation, the Commissioner alleges that in March 2006, in connection with a single residential loan transaction by Main Street, a secondary mortgage loan was omitted on a HUD-1 settlement statement in connection with a first mortgage loan transaction, which constitutes in connection with the activity for which Main Street was licensed, the omission of a material fact in violation of Section 36a-53b of the Connecticut General Statutes;
 
WHEREAS, the Commissioner believes that this allegation supports the initiation of enforcement proceedings against Main Street, including proceedings to revoke Main Street’s licenses pursuant to Sections 36a-494(a), 36a-517(a) and 36a-51 of the 2008 Supplement to the General Statutes, issue a cease and desist order against Main Street pursuant to Sections 36a-494(b), 36a-517(b) and 36a-52(a) of the 2008 Supplement to the General Statutes, and impose a civil penalty of up to $100,000 per violation on Main Street pursuant to Sections 36a-494(b) and 36a-517(b) of the 2008 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes;
 
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, on March 31, 2008, Main Street 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 Fifteen Thousand Dollars ($15,000) to support the Nationwide Mortgage Licensing System, jointly sponsored by CSBS and the American Association of Residential Mortgage Regulators;
 
WHEREAS, Main Street agrees to voluntarily enter into this Settlement Agreement without admitting or denying the allegation set forth herein, and solely for the purposes of obviating the need for formal administrative proceedings concerning the allegation described above;
 
WHEREAS, Main Street, through its execution of this Settlement Agreement, voluntarily agrees to waive any rights to a hearing upon the allegation 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 Main Street based upon the allegation contained herein.
 
NOW THEREFORE, the Commissioner and Main Street enter into this Settlement Agreement as follows:

1. Main Street shall not violate Section 36a-53b of the Connecticut General Statutes; and
2. 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 Main Street to enforce this Settlement Agreement, if the Commissioner determines that Main Street is not fully complying with any term or condition stated herein or if any representations made by Main Street 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, and shall constitute grounds upon which the Commissioner may deny, suspend, revoke or refuse to renew Main Street’s licenses as a first mortgage broker and secondary mortgage broker.

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 May 2008.                 ________/s/_________
                                                     Howard F. Pitkin
                                                     Banking Commissioner



I, David Bigley, Sr., state on behalf of Main Street 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 Main Street Mortgage, LLC; and that Main Street Mortgage, LLC agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein.
                                            

                                             By:  ________/s/_________
                                                   Name:  David Bigley, Sr.
                                                   Title:  Member
                                                   Main Street Mortgage, LLC


State of:  Connecticut

County of:  New Haven


On this the 16th day of May 2008, before me, Jane Vollono, the undersigned officer, personally appeared David Bigley, Sr., who acknowledged himself to be the Member of Main Street Mortgage, LLC, a member managed/manager managed limited liability company, and that he, as such 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 Member.

In witness whereof I hereunto set my hand.

                                                   ________/s/_________
                                                   Notary Public
                                                   Date Commission Expires:  11-30-2008


Administrative Orders and Settlements