DOB: American Lending Group, Inc., Settlement Agreement and Withdrawal of Notice of Automatic Suspension

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IN THE MATTER OF:

AMERICAN LENDING GROUP, INC.

    ("American Lending")

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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 American Lending 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 May 14, 2008, acting pursuant to Sections 36a-492(b), 36a-494(a)(1)(C), 36a-517(a)(1)(C) 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 and Secondary Mortgage Correspondent Lender/Broker Licenses and Notice of Right to Hearing (collectively “Notice”) against American Lending, which Notice is incorporated herein by reference;
 
WHEREAS, the Notice alleges that American Lending, 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 American Lending to engage in the business of a first mortgage correspondent lender/broker in Connecticut from 22 Richmond Center Court, St. Peters, Missouri;
 
WHEREAS, on May 22, 2008, American Lending received the Notice, and no request for a hearing was received by the Commissioner;
 
WHEREAS, on May 29, 2008, American Lending filed with the Commissioner a replacement bond numbered S-905-7832 issued by Washington International Insurance Company;
 
WHEREAS, on May 29, 2008, American Lending specifically assured the Commissioner that it did not do any mortgage loans in Connecticut between the dates of May 4, 2008 through today’s date;
 
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, American Lending 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, American Lending, 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 American Lending based upon the allegation contained in the Notice.
 
NOW THEREFORE, the Commissioner and American Lending enter into this Settlement Agreement and Withdrawal as follows:

1. American Lending 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 American Lending 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 American Lending 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 American Lending Group, Inc., to engage in the business of a first mortgage correspondent lender/broker in Connecticut from 22 Richmond Center Court, St. Peters, Missouri, issued on May 14, 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 American Lending to enforce this Settlement Agreement and Withdrawal if the Commissioner determines that American Lending is not fully complying with any term or condition stated herein or if any representation made by American Lending 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 11th day of June 2008.        

________/s/_________
Howard F. Pitkin
Banking Commissioner


I, Vibhu Grover, state on behalf of American Lending Group, Inc., 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 American Lending Group, Inc.; and that American Lending Group, Inc., agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein.


                                           By:  ________/s/_________
                                                 Name:  Vibhu Grover
                                                 Title:  Vice-President
                                                 American Lending Group, Inc.

State of:  Missouri

County of:  St. Charles


On this the 9th day of June 2008, before me, Jeremy Swisher, the undersigned officer, personally appeared Vibhu Grover, who acknowledged himself to be the Vice-President of American Lending Group, Inc., a corporation, and that he, as such _________________, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself as Vice President.

In witness whereof I hereunto set my hand.

                                               ________/s/_________
                                               Notary Public
                                               Date Commission Expires:  November 15, 2011


Administrative Orders and Settlements