DOB: James F. Dawes, Denial of Originator License

November 7, 2008
 
FIRST CLASS AND REGISTERED MAIL
 

Mr. James F. Dawes
18 Jenny Lane
Oxford, CT 06478
 
Re: Denial of Originator License
 
Dear Mr. Dawes:
 
On August 19, 2008, EPI Mortgage Center, Inc. (“EPI”) filed an application with this department seeking to license you as a mortgage loan originator.  EPI is currently licensed as a mortgage correspondent lender under Part I of Chapter 668 of the Connecticut General Statutes, “Mortgage Lenders, Brokers and Originators” (“Act”).
 
Section 36a-489(b) of the 2008 Supplement to the General Statutes, as amended by Public Acts 07-156 and 08-176, requires me to license a mortgage loan originator unless I find, among other things, that the financial responsibility, character, reputation, integrity and general fitness of the mortgage loan originator named in the application are not such as to warrant belief that granting the license would be in the public interest and consistent with the purposes of Sections 36a-485 to 36a-498a, inclusive, of the Connecticut General Statutes. 
 
Please be advised that for the reasons set forth below, I hereby deny the application.
 
Pursuant to Section 36a-17 of the Connecticut General Statutes, I have, through the Consumer Credit Division, conducted an investigation and determined that you were a managing member of Cross Country Lenders, LLC (“Cross Country”).  Cross Country was licensed as a mortgage correspondent lender under the Act until July 8, 2008, when it surrendered its license.  On November 6, 2008, I issued an Order to Cease and Desist and Order Imposing Civil Penalty against Cross Country based on its failure to maintain a minimum tangible net worth of $25,000, in violation of Section 36a-488 of the 2008 Supplement to the General Statutes, as amended by Public Acts 07-91, 07-156 and 08-176; employment of 25 originators absent registration, in violation of Section 36a-486(b) of the 2008 Supplement to the General Statutes; failure to pay the cost of an examination, in violation of Section 36a-65(c)(6) of the Connecticut General Statutes, as amended by Public Act 08-176; and failure to respond to a Report of Examination, in violation of Section 36a-17(d) of the Connecticut General Statutes.  In addition, on August 14, 2008, you filed for bankruptcy protection under Chapter 7 of Title 11 of the U.S. Code.
 

Based on the foregoing, I am unable to find that your financial responsibility, character, reputation, integrity and general fitness are such as to warrant belief that granting you a license as a mortgage loan 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/NS/ag
 
Registered Mail No. RB028035490US
 
cc: EPI Mortgage Center, Inc.