DOB: Old Commonwealth Mortgage, LLC, Settlement Agreement

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IN THE MATTER OF:

OLD COMMONWEALTH
MORTGAGE, LLC

    ("Old Commonwealth")

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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 (“Department”), conducted an investigation pursuant to Section 36a-17 of the Connecticut General Statutes into the activities of Old Commonwealth 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 15, 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 Correspondent Lender/Broker Licenses and Notice of Right to Hearing (collectively “Notice”) against Old Commonwealth, which Notice is incorporated herein by reference;
 
WHEREAS, the Notice alleged that Old Commonwealth, 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 Old Commonwealth to engage in the business of a first mortgage correspondent lender/broker in Connecticut from 377 Oak Street, Suite 410, Garden City, New York;
 
WHEREAS, on July 11, 2008, the Notice was returned to the Department marked “Return To Sender – Not Deliverable As Address – Unable To Forward – Unclaimed”;
 
WHEREAS, Section 36a-51(a) of the 2008 Supplement to the General Statutes provides, in pertinent part, that “[t]he notice shall be deemed received by the licensee on the earlier of the date of actual receipt or seven days after mailing or sending”;
 
WHEREAS, Respondent failed to request a hearing within the prescribed time period;
 
WHEREAS, on July 1, 2008, Old Commonwealth specifically assured the Commissioner that it has not done any business in Connecticut since May 3, 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, Old Commonwealth 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, Old Commonwealth, 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 Old Commonwealth based upon the allegations contained in the Notice.
 
NOW THEREFORE, the Commissioner and Old Commonwealth enter into this Settlement Agreement as follows:

1. Prior to the date this Settlement Agreement is executed by the Commissioner, Old Commonwealth will surrender its first mortgage correspondent lender/broker license No. 16157 and secondary mortgage correspondent lender/broker license No. 16161, and cease engaging in the business of a first and secondary mortgage correspondent lender/broker in Connecticut from 377 Oak Street, Suite 410, Garden City, New York;
2. Nothing in this Settlement Agreement shall adversely affect the ability of Old Commonwealth 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 Old Commonwealth to enforce this Settlement Agreement if the Commissioner determines that Old Commonwealth is not fully complying with any term or condition stated herein or if any representation made by Old Commonwealth 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 August 2008.        

________/s/_________
Howard F. Pitkin
Banking Commissioner


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

                                          By:  ________/s/_________
                                                 Name:  Neal Elbaum
                                                 Title:  President
                                                 Old Commonwealth Mortgage, LLC

State of:  New York

County of:  Queens


On this the 14 day of August 2008, before me, Joseph Mangini, the undersigned officer, personally appeared Neal Elbaum, who acknowledged himself/herself to be the president of Old Commonwealth Mortgage, LLC, a limited liability company, 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 limited liability company by himself/herself as ____________________.

In witness whereof I hereunto set my hand.

                                         ________/s/_________
                                         Notary Public / Commissioner of the Superior Court
                                         Date Commission Expires:  April 24, 2011


Administrative Orders and Settlements