DOB: First Capital Mortgage, L.L.C., Settlement Agreement

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IN THE MATTER OF:

FIRST CAPITAL MORTGAGE, L.L.C.

    ("First Capital")

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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 First Capital 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 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 Lender License, Notice of Intent to Issue Order to Cease and Desist and Notice of Right to Hearing (collectively “Notice”) against First Capital, which Notice is incorporated by reference herein;
 
WHEREAS, the Notice alleged that First Capital, 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 First Capital to engage in the business of a mortgage lender in Connecticut from 4 Walter E. Foran Boulevard, Unit 201, Flemington, New Jersey;
 
WHEREAS, on October 20, 2008, First Capital received the Notice, and no request for a hearing was received by the Commissioner;
 
WHEREAS, on October 20, 2008, First Capital specifically assured the Commissioner that First Capital has not done any business in Connecticut as of August, 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, First Capital 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, First Capital, 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 First Capital based upon the allegations contained in the Notice.
 
NOW THEREFORE, the Commissioner and First Capital enter into this Settlement Agreement as follows:

1. Prior to the date this Settlement Agreement is executed by the Commissioner, First Capital will surrender its mortgage lender licenses Nos. 10791 and 10792, and cease engaging in the business of a mortgage lender in Connecticut from 4 Walter E. Foran Boulevard, Unit 201, Flemington, New Jersey;
2. Nothing in this Settlement Agreement shall adversely affect the ability of First Capital 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 First Capital to enforce this Settlement Agreement if the Commissioner determines that First Capital is not fully complying with any term or condition stated herein or if any representation made by First Capital 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.        

________/s/_________
Howard F. Pitkin
Banking Commissioner


I, William F. Maier, state on behalf of First Capital Mortgage, L.L.C., 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 First Capital Mortgage, L.L.C.; and that First Capital Mortgage, L.L.C. agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein.

                                          By:  ________/s/_________
                                                 Name:  
                                                 Title:  President
                                                 First Capital Mortgage, L.L.C.

State of:  New Jersey

County of:  Hunterdon

On this the 12th day of November 2008, before me, Emily L. Kaleta, the undersigned officer, personally appeared William F. Maier III, who acknowledged himself/herself to be the President of First Capital Mortgage, L.L.C., a limited liability company, 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 / Commissioner of the Superior Court
                                        Date Commission Expires:  1/15/2012


Administrative Orders and Settlements