DOB: 1st Republic Mortgage Bankers, Inc., Settlement Agreement and Withdrawal of Order of Summary Suspension

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IN THE MATTER OF:

1ST REPUBLIC MORTGAGE
BANKERS, INC.

    ("1st Republic")

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SETTLEMENT AGREEMENT

AND

WITHDRAWAL OF ORDER
OF SUMMARY 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 1st Republic 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 October 16, 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 Lender License, Notice of Intent to Issue Order to Cease and Desist and Notice of Right to Hearing (collectively “Notice”) against 1st Republic, which Notice is incorporated by reference herein;
 
WHEREAS, the Notice alleged that 1st Republic, 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 1st Republic to engage in the business of a mortgage lender in Connecticut from 110 Jericho Turnpike, Floral Park, New York;
 
WHEREAS, on October 23, 2008, 1st Republic received the Notice, and no request for a hearing was received by the Commissioner;
 
WHEREAS, on October 30, 2008, 1st Republic filed with the Commissioner a duplicate original of a replacement bond numbered 83BSBEM5499 previously issued by Hartford Fire Insurance Company on April 11, 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, 1st Republic agrees to voluntarily enter into this Settlement Agreement and Withdrawal of Order of Summary Suspension (“Settlement Agreement and Withdrawal”) 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, 1st Republic, through its execution of this Settlement Agreement and Withdrawal, 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 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 1st Republic based upon the allegations contained in the Notice.
 
NOW THEREFORE, the Commissioner and 1st Republic enter into this Settlement Agreement and Withdrawal as follows:

1. 1st Republic shall cease and desist from violating Section 36a-492(a) of the 2008 Supplement to the General Statutes and agrees to maintain surety bonds that run concurrently with any license issued to 1st Republic under Part I of Chapter 668 of the Connecticut General Statutes and file such bonds with the Commissioner as required by Section 36a-492(a) of the 2008 Supplement to the General Statutes;
2. Nothing in this Settlement Agreement and Withdrawal shall adversely affect the ability of 1st Republic 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 Order of Summary Suspension of the license of 1st Republic Mortgage Bankers, Inc., to engage in the business of a mortgage lender in Connecticut from 110 Jericho Turnpike, Floral Park, New York, issued on October 16, 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 1st Republic to enforce this Settlement Agreement and Withdrawal if the Commissioner determines that 1st Republic is not fully complying with any term or condition stated herein or if any representation made by 1st Republic 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 13th day of November 2008.        

________/s/_________
Howard F. Pitkin
Banking Commissioner


I, John Reimer, state on behalf of 1st Republic Mortgage Bankers, Inc. 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 1st Republic Mortgage Bankers, Inc.; and that 1st Republic Mortgage Bankers, Inc. agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein.

                                          By:  ________/s/_________
                                                 Name: John Reimer 
                                                 Title:  Vice President
                                                 1st Republic mortgage Bankers, Inc.


State of:  New York

County of:  Nassau


On this the 7th day of November 2008, before me, Emily Albert, the undersigned officer, personally appeared John Reimer, who acknowledged himself/herself to be the Vice President of 1st Republic Mortgage Bankers, Inc., a corporation, and that he/she, as such Vice 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 Vice President.

In witness whereof I hereunto set my hand.

                                           ________/s/_________
                                           Notary Public/Commissioner of the Superior Court
                                           Date Commission Expires:  December 31, 2009


Administrative Orders and Settlements