DOB: Mass Financial Mortgage Corp., Settlement Agreement and Withdrawal of Notice of Automatic Suspension

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IN THE MATTER OF:

MASS FINANCIAL MORTGAGE CORP.

    ("MASS FINANCIAL")

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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 Mass Financial 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 January 3, 2008, acting pursuant to Section 36a-492(b) of the Connecticut General Statutes and Sections 36a-494(a)(1)(C) and 36a-51 of the Connecticut General Statutes, as amended by Public Act 07-91, the Commissioner issued a Notice of Automatic Suspension, Notice of Intent to Revoke First Mortgage Lender/Broker License and Notice of Right to Hearing (collectively “Notice”) against Mass Financial, which Notice is incorporated herein by reference;
 
WHEREAS, the Notice alleges that Mass Financial, in violation of Section 36a-492(a) of the Connecticut General Statutes, failed to maintain a surety bond that runs concurrently with the period of the license granted to Mass Financial to engage in the business of a first mortgage lender/broker in Connecticut from 1601 Blue Hill Avenue, Suite 203, Mattapan, Massachusetts;
 
WHEREAS, on January 7, 2008, Mass Financial received the Notice, and no request for a hearing was received by the Commissioner;
 
WHEREAS, on December 15, 2007, Mass Financial changed its corporate name to First Eagle Financial Corporation d/b/a FEFC (“First Eagle”);
 
WHEREAS, on March 18, 2008, First Eagle filed with the Commissioner a replacement bond numbered 81BSBEY8215 issued by Hartford Fire Insurance Company;
 
WHEREAS, on June 2, 2008, First Eagle specifically assured the Commissioner that it has not engaged in the business under the license as a first mortgage lender/broker in Connecticut since November 10, 2007;
 
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, First Eagle 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, First Eagle, 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 First Eagle based upon the allegation contained in the Notice.
 
NOW THEREFORE, the Commissioner and First Eagle enter into this Settlement Agreement and Withdrawal as follows:

1. First Eagle shall cease and desist from violating Section 36a-492(a) of the Connecticut General Statutes and agrees to maintain surety bonds that run concurrently with any license issued to First Eagle under Part I(A) of Chapter 668 of the Connecticut General Statutes;
2. Nothing in this Settlement Agreement and Withdrawal shall adversely affect the ability of First Eagle 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 Mass Financial Mortgage Corp., n/k/a First Eagle Financial Corporation d/b/a FEFC to engage in the business of a first mortgage lender/broker in Connecticut from 1601 Blue Hill Avenue, Suite 203, Mattapan, Massachusetts, issued on January 3, 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 First Eagle to enforce this Settlement Agreement and Withdrawal if the Commissioner determines that First Eagle is not fully complying with any term or condition stated herein or if any representation made by First Eagle 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 30th day of July 2008.        

________/s/_________
Howard F. Pitkin
Banking Commissioner


I, Lucner Charles, state on behalf of First Eagle Financial Corporation d/b/a FEFC, 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 First Eagle Financial Corporation d/b/a FEFC; and that First Eagle Financial Corporation d/b/a FEFC agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein.

     

                                          By:  ________/s/_________
                                                 Name:
                                                 Title:
                                                 First Eagle Financial Corporation d/b/a FEFC



State of:  Massachusetts

County of:  Norfolk


On this the 24th day of July 2008, before me, ________________________, the undersigned officer, personally appeared _________________________, who acknowledged himself/herself to be the president of First Eagle Financial Corporation d/b/a FEFC, a corporation, and that he/she, 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/herself as president.

In witness whereof I hereunto set my hand.

                                                 ________/s/_________
                                                 Notary Public
                                                 Date Commission Expires:  March 29, 2013


Administrative Orders and Settlements