DOB: ACM Mortgage Services, LLC Settlement Agreement

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IN THE MATTER OF:

ACM Mortgage Services, LLC

    ("ACM Mortgage Services")

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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 examination pursuant to Section 36a-17 of the Connecticut General Statutes into the activities of ACM Mortgage Services 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, ACM Mortgage Services is a limited liability company that is currently licensed as a first mortgage correspondent lender under Part I(A) of Chapter 668 of the Connecticut General Statutes, “Nondepository First Mortgage Lenders, Brokers and Originators” and a secondary mortgage correspondent lender under Part I(B) of Chapter 668 of the Connecticut General Statutes, “Secondary Mortgage Lenders, Brokers and Originators”;

WHEREAS, as a result of the examination, the Commissioner alleges that ACM Mortgage Services employed or retained at least two originators without registering them, in violation of Sections 36a-486(b) and 36a-511(b) of the 2008 Supplement to the General Statutes
 
WHEREAS, the Commissioner believes that the Commissioner’s allegations support the initiation of enforcement proceedings against ACM Mortgage Services, including proceedings to revoke ACM Mortgage Services’ licenses pursuant to Sections 36a-494(a) and 36a-517(a) 2008 Supplement to the General Statute, issue a cease and desist order against ACM Mortgage Services pursuant to Section 36a-52(a) of the 2008 Supplement to the General Statutes and Sections 36a-494(b) and 36a-517(b) of the 2008 Supplement to the General Statutes and impose a civil penalty of up to $100,000 per violation on ACM Mortgage Services pursuant to Section 36a-50(a) of the Connecticut General Statutes and Sections 36a-494(b) and 36a-517(b) of the 2008 Supplement to the General Statutes

WHEREAS, Section 4-177(c) of the Connecticut General Statutes states, in pertinent part, that “[u]nless precluded by law, a contested case may be resolved by . . . agreed settlement”;

WHEREAS, Section 36a-1-55(a) of the Regulations of Connecticut State Agencies states, in pertinent part, that “[p]ursuant to subsection (c) of section 4-177 of the Connecticut General Statutes, unless precluded by law, any contested case may be resolved by . . . agreed settlement”;

WHEREAS, ACM Mortgage Services agrees to voluntarily enter into this Settlement Agreement without admitting or denying any allegations set forth herein, and solely for the purposes of obviating the need for formal administrative proceedings concerning the allegations described above;

WHEREAS, on May 08, 2008, ACM Mortgage Services, 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 two thousand dollars ($2,000) to support the Nationwide Mortgage Licensing System, jointly sponsored by CSBS and the American Association of Residential Mortgage Regulators;

WHEREAS, ACM Mortgage Services, through its execution of this Settlement Agreement, voluntarily agrees to waive any rights to a hearing upon the allegations 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 ACM Mortgage Services based upon the allegations contained herein.

NOW THEREFORE, the Commissioner and ACM Mortgage Services enter into this Settlement Agreement as follows:

1. 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 ACM Mortgage Services to enforce this Settlement Agreement, if the Commissioner determines that ACM Mortgage Services is not fully complying with any term or condition stated herein or if any representations made by ACM Mortgage Services 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.

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 10th day of June 2008.             ________/s/_________
                                                    HOWARD F. PITKIN
                                                    Banking Commissioner

I, Jennifer L. Lynch, state on behalf of ACM Mortgage Services, 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 ACM Mortgage Services, LLC; that ACM Mortgage Services, LLC agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that ACM Mortgage Services, LLC voluntarily agrees to enter into this Settlement Agreement, expressly waiving any right to a hearing on the matters described herein.


By:  ___________/s/___________
 Jennifer L. Lynch
 Managing Member
 ACM Mortgage Services, LLC

State of:  Connecticut

County of:   New Haven

On this the 2nd day of June, 2008, before me, Kathleen Mirto, the undersigned officer, personally appeared Jennifer L. Lynch who acknowledged herself to be the Managing Member of ACM Mortgage Services, LLC, a member managed limited liability company, and that she, as such Managing 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 herself as Managing Member.

 In witness whereof I hereunto set my hand.

 ___________/s/____________
 Notary Public
 Date Commission Expires:  March 31, 2009
 


Administrative Orders and Settlements