DOB: Mortgage Workouts, Inc., d/b/a Eastpointe Mortgage Company, Settlement Agreement

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IN THE MATTER OF:

MORTGAGE WORKOUTS, INC.,
d/b/a EASTPOINTE MORTGAGE
COMPANY

    ("Mortgage Workouts")

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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 investigation pursuant to Section 36a-17 of the Connecticut General Statutes into the activities of Mortgage Workouts 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 27, 2008, the Commissioner, acting pursuant to Sections 36a-492(b), 36a-494(a)(1)(C), 36a-517(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 and Secondary Mortgage Broker Licenses and Notice of Right to Hearing (collectively “Notice”) against Mortgage Workouts, which Notice is incorporated herein by reference;
 
WHEREAS, the Notice alleged that Mortgage Workouts, 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 Mortgage Workouts to act as a first mortgage broker in Connecticut from 5 Pleasant Street, Methuen, Massachusetts;
 
WHEREAS, on June 4, 2008, Mortgage Workouts received the Notice, and no request for a hearing was received by the Commissioner;
 
WHEREAS, on June 5, 2008, Mortgage Workouts specifically assured the Commissioner that it has not done any business in Connecticut since its bond expired on May 16, 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, Mortgage Workouts 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, Mortgage Workouts, 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 Mortgage Workouts based upon the allegations contained in the Notice.
 
NOW THEREFORE, the Commissioner and Mortgage Workouts enter into this Settlement Agreement as follows:

1. Prior to the date this Settlement Agreement is executed by the Commissioner, Mortgage Workouts will surrender its first mortgage broker license No. 12628 and secondary mortgage broker license No. 10972, and cease acting as a first and secondary mortgage broker in Connecticut from 5 Pleasant Street, Methuen, Massachusetts;
2. Nothing in this Settlement Agreement shall adversely affect the ability of Mortgage Workouts 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 Mortgage Workouts to enforce this Settlement Agreement if the Commissioner determines that Mortgage Workouts is not fully complying with any term or condition stated herein or if any representation made by Mortgage Workouts 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 19th day of June 2008.                ________/s/_________
                                                     Howard F. Pitkin
                                                     Banking Commissioner



I, Blaise Coco, state on behalf of Mortgage Workouts, Inc., d/b/a Eastpointe Mortgage Company, 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 Mortgage Workouts, Inc., d/b/a Eastpointe Mortgage Company; and that Mortgage Workouts, Inc., d/b/a Eastpointe Mortgage Company agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein.
                                            

                                            By:  ________/s/_________
                                                   Blaise Coco, President
                                                   Mortgage Workouts, Inc.
                                                   d/b/a Eastpointe Mortgage Company


State of:  New Hampshire

County of:  Rockingham


On this the 18th day of June 2008, before me, Carol A. Currier, the undersigned officer, personally appeared Blaise Coco, who acknowledged himself to be the President of Mortgage Workouts, Inc., d/b/a Eastpointe Mortgage Company, 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:  September 5, 2012


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