DOB: Lois E. Walters, 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 Walters to determine if she had violated, was violating or was about to violate the provisions of the Connecticut General Statutes within the jurisdiction of the Commissioner;

WHEREAS, on July 14, 2008, the Commissioner, acting pursuant to and Section 36a-52(a) of the 2008 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes issued a Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (collectively “Notice”) against Walters, which Notice is incorporated herein by reference;

WHEREAS, the Notice alleges that from at least November 13, 2006 to January 27, 2007, Walters, on behalf of Alpine Financial, LLC, a licensed first and secondary mortgage correspondent lender/broker in Connecticut, was paid compensation for soliciting mortgage loan customers who were looking to buy a home, without being registered as an originator;

WHEREAS, the Notice asserted that Walters’ solicitation of mortgage loans for compensation absent registration as an originator constitutes a violation of Section 36a-486(b) of the Connecticut General Statutes, and that such violation would form the basis to issue an order to cease and desist against Walters pursuant to Section 36a-52(a) of the 2008 Supplement to the General Statutes, and to impose a civil penalty against Walters pursuant to Section 36a-50(a) of the Connecticut General Statutes;

WHEREAS, on July 19, 2008, Walters received the Notice;
WHEREAS, on August 4, 2008, Walters requested a hearing on the allegations set forth in the Notice, which hearing is scheduled for September 18, 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, on October 17, 2008, Walters made a contribution to the State Regulatory Registry LLC, a wholly-owned subsidiary of the Conference of State Bank Supervisors (“CSBS”), in the amount of One Thousand Dollars ($1,000) to support the Nationwide Mortgage Licensing System, jointly sponsored by CSBS and the American Association of Residential Mortgage Regulators;
WHEREAS, Walters voluntarily agrees to enter into this Settlement Agreement without admitting or denying any allegations contained in the Notice and set forth herein, and solely for the purpose of obviating the need for formal administrative proceedings concerning the allegation described above;
WHEREAS, Walters, through her 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 Walters based upon the allegations contained in the Notice.
NOW THEREFORE, the Commissioner and Walters enter into this Settlement Agreement as follows:

1. Walters agrees that she will comply with all of the requirements applicable to mortgage loan originators within Part I of Chapter 668, Sections 36a-485 to 36a-534a, inclusive, of the Connecticut General Statutes, “Mortgage Lenders, Brokers and Originators”, and that the violation alleged in the Notice shall not occur in the future;
2. The Commissioner agrees to accept an application from a licensed mortgage broker, mortgage correspondent lender or mortgage lender to license Walters as a mortgage loan originator, and shall so license Walters, provided she meets the requirements under Part I of Chapter 668 of the Connecticut General Statutes and the Commissioner can make the findings required under Section 36a-489(b) of the 2008 Supplement to the General Statutes, as amended by Public Acts 07-156 and 08-176; 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 Walters to enforce this Settlement Agreement, if the Commissioner determines that Walters is not in full compliance with any term or condition stated herein or if any representation made by Walters 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 17th day of November 2008.        

Howard F. Pitkin
Banking Commissioner

I, Lois E. Walters, state that I have read the foregoing Settlement Agreement; that I know and fully understand its contents; and that I agree freely and without threat or coercion of any kind to comply with the terms and conditions stated herein.

                                          By:  ________/s/_________
                                                 Lois E. Walters

State of:  Connecticut

County of:  New Haven

On this the 10th day of November 2008, before me, Robin Lentz, the undersigned officer, personally appeared Lois E. Walters, known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument and acknowledged that she executed the same for the purposes therein contained.

In witness whereof I hereunto set my hand.

                                        Notary Public / Commissioner of the Superior Court
                                        Date Commission Expires:  June 30, 2010

Administrative Orders and Settlements