DOB: American Mortgage General, LLC, Settlement Agreement

* * * * * * * * * * * * * * * *

IN THE MATTER OF:

AMERICAN MORTGAGE
GENERAL, LLC

    ("American")

* * * * * * * * * * * * * * * *

*
*
*
*
*
*
*
*
*
*

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 American 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 21, 2008, the Commissioner, acting pursuant to Sections 36a-492(b), 36a-494(a)(1)(C) and 36a-51(a) of the 2008 Supplement to the General Statutes, issued a Notice of Automatic Suspension, Notice of Intent to Revoke First Mortgage Correspondent Lender/Broker License and Notice of Right to Hearing (collectively “Notice”) against American, which Notice is incorporated herein by reference;
 
WHEREAS, the Notice alleged that American, 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 to engage in the business of a first mortgage correspondent lender/broker in Connecticut from 854 Asylum Avenue, Hartford, Connecticut;
 
WHEREAS, on February 25, 2008, American received the Notice;
 
WHEREAS, on April 3, 2008 American requested a hearing on the Notice;
 
WHEREAS, on April 22, 2008, American withdrew its request for a hearing on the Notice;
 
WHEREAS, on May 20, 2008, American specifically assured the Commissioner that it has not submitted or closed any mortgage as a first mortgage correspondent lender/broker since it bond expired January 13, 2008;
 
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 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, American, 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 American based upon the allegations contained in the Notice.

NOW THEREFORE, the Commissioner and American enter into this Settlement Agreement as follows:

1. Prior to the date this Settlement Agreement is executed by the Commissioner, American will surrender its first mortgage correspondent lender/broker license No. 10360 and cease engaging in the business of a first mortgage correspondent lender/broker in Connecticut from 854 Asylum Avenue, Hartford, Connecticut;
2. Nothing in this Settlement Agreement shall adversely affect the ability of American 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 American to enforce this Settlement Agreement if the Commissioner determines that American is not fully complying with any term or condition stated herein or if any representation made by American 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 12th day of June 2008.                ________/s/_________
                                                     Howard F. Pitkin
                                                     Banking Commissioner



I, Kwadwo A. Yeboah, state on behalf of American Mortgage General, 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 American Mortgage General, LLC; and that American Mortgage General, LLC agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein.


                                             By:  ________/s/_________
                                                   Name:  Kwadwo A. Yeboah
                                                   Title:  Member
                                                   American Mortgage General, LLC

State of:  Connecticut

County of:  Hartford


On this the 11th day of June 2008, before me, Edelmyra Perez, the undersigned officer, personally appeared Kwadwo A. Yeboah, who acknowledged himself to be the member of American Mortgage General, LLC, a 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:  4-30-11


Administrative Orders and Settlements