DOB: Source Funding Corp., Settlement Agreement

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IN THE MATTER OF:

SOURCE FUNDING CORP.

    ("Source")

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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 Source 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 April 23, 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 Source, which Notice is incorporated herein by reference;
 
WHEREAS, the Notice alleged that Source, 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 Source to act as a first mortgage broker in Connecticut from 182 West Central Street, Suite 302, Natick, Massachusetts;
 
WHEREAS, on May 1, 2008, Source received the Notice, and no request for a hearing was received by the Commissioner;
 
WHEREAS, on June 16, 2008, Source specifically assured the Commissioner that it has not conducted any business in Connecticut since March 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, Source 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, Source, 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 Source based upon the allegations contained in the Notice.

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

1. Prior to the date this Settlement Agreement is executed by the Commissioner, Source will surrender its first mortgage broker license No. 16264 and secondary mortgage broker license No. 16266 and cease acting as a first and secondary mortgage broker in Connecticut from 182 West Central Street, Suite 302, Natick, Massachusetts;
2. Nothing in this Settlement Agreement shall adversely affect the ability of Source 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 Source to enforce this Settlement Agreement if the Commissioner determines that Source is not fully complying with any term or condition stated herein or if any representation made by Source 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 8th day of July 2008.        

________/s/_________
Howard F. Pitkin
Banking Commissioner


I, Jason Anker, state on behalf of Source Funding Corp., 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 Source Funding Corp.; and that Source Funding Corp., agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein.

                                          By:  ________/s/_________
                                                 Name:  Jason Anker
                                                 Title:  President
                                                 Source Funding Corp.

State of:  MA

County of:  Middlesex


On this the 3rd day of June 2008, before me, Scott Cassity, the undersigned officer, personally appeared Jason Anker, who acknowledged himself/herself to be the President of Source Funding Corp., a corporation, and that he/she, 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/herself as President.

In witness whereof I hereunto set my hand.

                                                 ________/s/_________
                                                 Notary Public
                                                 Date Commission Expires:  March 1, 2013


Administrative Orders and Settlements