DOB: Michael J. Healey, Denial of Originator Registration

 June 30, 2008
 
 
 
FIRST CLASS AND REGISTERED MAIL
 

Mr. Michael J. Healey
22 Highland Road
Saunderstown, RI 02874
 
Re: Denial of Originator Registration
 
Dear Mr. Healey:
 
On May 16, 2008, Homeland Funding Solutions, Inc. (“Homeland Funding”) filed a New Application for Registration of Loan Originators with the Consumer Credit Division (“Division”) of this department seeking to register you as a loan originator.  Homeland Funding 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”.  Pursuant to Section 36a-489(b) of the 2008 Supplement to the General Statutes, I hereby deny the registration for the reason set forth below.
 
Section 36a-489(b) of the 2008 Supplement to the General Statutes requires me to register an originator unless I find, among other things, that the character and integrity of such originator are not such as to warrant belief that registration would be in the public interest and consistent with the purposes of Sections 36a-485 to 36a-498a, inclusive, of the Connecticut General Statutes.  If I deny the registration, I must notify the originator and the applicant of the denial and the reasons for such denial.
 
Pursuant to the authority granted to me by Section 36a-17 of the Connecticut General Statutes, I have, through the Division, investigated your activities to determine whether your financial responsibility, character, reputation, integrity and general fitness are such as to warrant belief that granting you registration as an originator would be in the public interest and consistent with the purposes of Sections 36a-485 to 36a-498a, inclusive, of the Connecticut General Statutes.  As a result of such investigation, I have considered the fact that in response to Question 2 on the Loan Originator Addendum Form dated May 6, 2008, which asked “[h]ave you ever been the subject of actions (cease and desist orders, consent orders, injunctions, license suspensions or revocations, etc.) before any regulatory agency?”, you answered “Yes”.  You also provided a copy of an Order Making Findings and Imposing Sanctions by Default issued by the U. S. Securities and Exchange Commission on April 21, 2006, In the Matter of Michael J. Healey, which disclosed that you were found to have violated Section 15(a) of the Securities Exchange Act of 1934, and, as a result, you were ordered to cease and desist violating Section 15(a) of the Securities Exchange Act, barred from association with a broker or dealer, fined and ordered to disgorge ill-gotten gains.
 
Section 36a-53a of the Connecticut General Statutes provides, in pertinent part, that: 
No person shall make or cause to be made . . . in any document filed with the commissioner . . . any statement which is, at the time and in the light of the circumstances under which it is made, false or misleading in any material respect.
Upon further investigation, I find that in response to Question 2 on the Loan Originator Addendum Form dated August 9, 2007, filed with me in connection with your prior registration with Surfing for My Mortgage d/b/a Mortgage Options of America, Inc., which asked “[h]ave you ever been the subject of actions (cease and desist orders, consent orders, injunctions, license suspensions or revocations, etc.) before any regulatory agency?”, you answered “No”.
 
Based on the facts mentioned above, I find that you have made in a document filed with me a statement which is, at the time and in the light of the circumstances under which it was made, misleading in a material respect in violation of Section 36a-53a of the Connecticut General Statutes.  Therefore, I am unable to find that your character and integrity are such as to warrant belief that granting you registration as an originator will be in the public interest and consistent with the purposes of Sections 36a-485 to 36a-498a, inclusive, of the Connecticut General Statutes.
Very truly yours,
 
Howard F. Pitkin
Banking Commissioner
 
HFP/DK/ag
 
Registered Mail No. RB028034888US
 
cc:  Homeland Funding Solutions, Inc.