DOB: Homelink Mortgage, LLC, Settlement Agreement and Withdrawal of Notice of Automatic Suspension

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IN THE MATTER OF:

HOMELINK MORTGAGE, LLC

    ("Homelink")

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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 Homelink 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 8, 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 Broker Licenses and Notice of Right to Hearing (collectively “Notice”) against Homelink, which Notice is incorporated herein by reference;
 
WHEREAS, the Notice alleges that Homelink, 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 Homelink to act as a first mortgage broker in Connecticut from Foot of Broad Street, Stratford, Connecticut;
 
WHEREAS, on April 16, 2008, Homelink received the Notice;
 
WHEREAS, on April 30, 2008, Homelink requested a hearing on the Notice;
 
WHEREAS, on July 1, 2008, Homelink withdrew its request for a hearing on the Notice;
 
WHEREAS, on July 3, 2008, Homelink filed with the Commissioner a replacement bond numbered S-434750 issued by NGM Insurance Company;
 
WHEREAS, on May 29, 2008, Homelink specifically assured the Commissioner that no business has been conducted in Connecticut since March 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, Homelink 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, Homelink, 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 Homelink based upon the allegation contained in the Notice.
 
NOW THEREFORE, the Commissioner and Homelink enter into this Settlement Agreement and Withdrawal as follows:

1. Homelink shall cease and desist from violating Section 36a-492(a) of the 2008 Supplement to the General Statutes and any successor statute, and agrees to maintain surety bonds that run concurrently with any license issued to Homelink under Part I of Chapter 668 of the Connecticut General Statutes;
2. Nothing in this Settlement Agreement and Withdrawal shall adversely affect the ability of Homelink 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 Homelink Mortgage, LLC to act as a first mortgage broker in Connecticut from Foot of Broad Street, Stratford, Connecticut, issued on April 8, 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 Homelink to enforce this Settlement Agreement and Withdrawal if the Commissioner determines that Homelink is not fully complying with any term or condition stated herein or if any representation made by Homelink 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 21st day of July 2008.        

________/s/_________
Howard F. Pitkin
Banking Commissioner


I, Elizabeth Sherman, state on behalf of Homelink Mortgage, LLC, 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 Homelink Mortgage, LLC; and that Homelink Mortgage, LLC agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein.

     

                                          By:  ________/s/_________
                                                 Name:  Elizabeth Sherman
                                                 Title:  Managing Member
                                                 Homelink Mortgage, LLC

State of:  New York

County of:  Nassau


On this the 17th day of July 2008, before me, Robin E. Mayer, the undersigned officer, personally appeared Elizabeth Sherman, who acknowledged himself/herself to be the Managing Member of Homelink Mortgage, LLC, a limited liability company, and that he/she, as such Managing 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/herself as Managing Member.

In witness whereof I hereunto set my hand.

                                                 ________/s/_________
                                                 Notary Public
                                                 Date Commission Expires:  March 16, 2010


Administrative Orders and Settlements