DOB: Home Funding Corporation d/b/a Nevada Home Funding Corporation, Settlement Agreement

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IN THE MATTER OF:

HOME FUNDING CORPORATION
d/b/a NEVADA HOME FUNDING
CORPORATION

    ("HFC")

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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, conducted an investigation pursuant to Section 36a-17 of the Connecticut General Statutes into the activities of HFC 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 August 14, 2008, the Commissioner, acting pursuant to Section 4-182(c) of the Connecticut General Statutes, Section 36a-494(a)(1)(C) of the 2008 Supplement to the General Statutes, as amended by Public Acts 07-91, 07-156 and 08-176, and Sections 36a-51(a) and 36a-52(a) of the 2008 Supplement to the General Statutes, issued an Order of Summary Suspension, Notice of Intent to Revoke Mortgage Correspondent Lender License, Notice of Intent to Issue Order to Cease and Desist and Notice of Right to Hearing (collectively “Notice”) against HFC, which Notice is incorporated by reference herein;
 
WHEREAS, the Notice alleged that HFC, in violation of Section 36a-492(a) of the 2008 Supplement to the General Statutes, as amended by Public Acts 07-156 and 08-176, failed to maintain a surety bond that runs concurrently with the period of the license granted to HFC to engage in the business of a mortgage correspondent lender in Connecticut from 10718 Civic Center Drive, Rancho Cucamonga, California;
 
WHEREAS, on August 26, 2008, HFC received the Notice, and no request for a hearing was received by the Commissioner;
 
WHEREAS, on October 6, 2008, HFC specifically assured the Commissioner that HFC has not done any business in Connecticut as of July 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, HFC 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, HFC, 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 HFC based upon the allegations contained in the Notice.
 
NOW THEREFORE, the Commissioner and HFC enter into this Settlement Agreement as follows:

1. Prior to the date this Settlement Agreement is executed by the Commissioner, HFC will surrender its mortgage correspondent lender license No. 18517, and cease engaging in the business of a mortgage correspondent lender in Connecticut from 10718 Civic Center Drive, Rancho Cucamonga, California;
2. Nothing in this Settlement Agreement shall adversely affect the ability of HFC 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 HFC to enforce this Settlement Agreement if the Commissioner determines that HFC is not fully complying with any term or condition stated herein or if any representation made by HFC 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 18th day of November 2008.        

________/s/_________
Howard F. Pitkin
Banking Commissioner


I, John Lomen, state on behalf of Home Funding Corporation d/b/a Nevada Home Funding Corporation, 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 Home Funding Corporation d/b/a Nevada Home Funding Corporation; and that Home Funding Corporation d/b/a Nevada Home Funding Corporation agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein.

                                          By:   ________/s/_________
                                                 Name:  John Lomen
                                                 Title:  President
                                                 Home Funding Corporation
                                                 d/b/a Nevada Home Funding Corporation
                                                 


State of: 

County of: 


On this the 24th day of October 2008, before me, Steven J. Schenkel, the undersigned officer, personally appeared John Lomen, who acknowledged himself/herself to be the President of Home Funding Corporation d/b/a Nevada Home Funding Corporation, 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:  Oct. 24, 2011


Administrative Orders and Settlements