DOB: C.U. Members Mortgage Corporation, Settlement Agreement and Withdrawal of Order of Summary Suspension

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IN THE MATTER OF:

C.U. MEMBERS MORTGAGE
CORPORATION

    ("C.U. Members")

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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 (“Department”), conducted an investigation pursuant to Section 36a-17 of the Connecticut General Statutes into the activities of C.U. Members 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 December 15, 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 C.U. Members, which Notice is incorporated by reference herein;
 
WHEREAS, the Notice alleged that C.U. Members, 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 C.U. Members to engage in the business of a mortgage correspondent lender in Connecticut from 365 Hemingway Avenue, 2nd Floor, East Haven, Connecticut;
 
WHEREAS, on December 18, 2008, C.U. Members received the Notice, and no request for a hearing was received by the Commissioner;
 
WHEREAS, on December 31, 2008, C.U. Members filed with the Commissioner a replacement bond numbered 2748428 issued by Great American Insurance Company, effective November 19, 2008;
 
WHEREAS, on December 31, 2008, C.U. Members assured the Commissioner that it only closed three loans in Connecticut during the period from November 19 through December 31, 2008;
 
WHEREAS, a review of the Department’s records did not reveal any outstanding complaints against C.U. Members nor any major problems as result of its most recent compliance examination;
 
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, C.U. Members 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, C.U. Members, 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 C.U. Members based upon the allegations contained in the Notice.
 
NOW THEREFORE, the Commissioner and C.U. Members enter into this Settlement Agreement and Withdrawal as follows:

1. C.U. Members 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 C.U. Members under Part I of Chapter 668 of the Connecticut General Statutes;
2. Nothing in this Settlement Agreement and Withdrawal shall adversely affect the ability of C.U. Members 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 C.U. Members Mortgage Corporation to engage in the business of a mortgage correspondent lender in Connecticut from 365 Hemingway Avenue, 2nd Floor, East Haven, Connecticut, issued on December 15, 2008, is hereby WITHDRAWN; and
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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 C.U. Members to enforce this Settlement Agreement and Withdrawal if the Commissioner determines that C.U. Members is not fully complying with any term or condition stated herein or if any representation made by C.U. Members 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 17th day of February 2009.        

________/s/_________
Howard F. Pitkin
Banking Commissioner


I, Dorothy L. Owens, state on behalf of C.U. Members Mortgage Corporation 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 C.U. Members Mortgage Corporation; and that C.U. Members Mortgage Corporation agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein.

                                          By:  ________/s/_________
                                                 Name:  Dorothy L. Owens
                                                 Title:  President
                                                 C.U. Members Mortgage Corporation

State of:  Connecticut

County of:  New Haven


On this the 10th day of February 2009, before me, Adam M. Brouillard, the undersigned officer, personally appeared Dorothy L. Owens, who acknowledged himself/herself to be the President of C.U. Members Mortgage 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 its President.

In witness whereof I hereunto set my hand.

                                        ________/s/_________
                                        Notary Public / Commissioner of the Superior Court
                                        Date Commission Expires:


Administrative Orders and Settlements