DOB: Eagle Mortgage Group, LLC, Settlement Agreement

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IN THE MATTER OF:

EAGLE MORTGAGE GROUP, LLC

    ("Eagle Mortgage Group")

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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 et seq., 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 examination pursuant to Section 36a-17 of the Connecticut General Statutes into the activities of Eagle Mortgage Group 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, Eagle Mortgage Group is a limited liability company that is currently licensed as a mortgage lender under Part I of Chapter 668, Sections 36a-485 et seq. of the Connecticut General Statutes;
 
WHEREAS, as a result of such examination, the Commissioner alleges that Eagle Mortgage Group employed or retained, during the period of April 2006 through May 2007, three (3) individuals as loan originators without registering them, in violation of Sections 36a-486(b) and 36a-511(b) of the Connecticut General Statutes;
 
WHEREAS, the Commissioner believes that such allegations would support initiation of enforcement proceedings against Eagle Mortgage Group, including proceedings to revoke and/or refuse to renew Eagle Mortgage Group’s license pursuant to Section 36a-494(a) of the 2008 Supplement to the Connecticut General Statutes, as amended by Public Acts 07-91, 07-156, and 08-176, and Section 36a-51 of the 2008 Supplement to the General Statutes, issue a cease and desist order against Eagle Mortgage Group pursuant to Section 36a-494(b) of the 2008 Supplement to the General Statutes, as amended by Public Acts 07-91, 07-156, and 08-176, and Section 36a-52(a) of the 2008 Supplement to the General Statutes, and impose a civil penalty of up to one hundred thousand dollars ($100,000) per violation on Eagle Mortgage Group pursuant to Section 36a-494(b) of the 2008 Supplement to the General Statutes, as amended, and Section 36a-50(a) of the Connecticut General Statutes;
 
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, both the Commissioner and Eagle Mortgage Group acknowledge the possible consequences of formal administrative proceedings;
 
WHEREAS, Eagle Mortgage Group agrees to voluntarily enter into this Settlement Agreement without admitting or denying any allegations set forth herein, and solely for the purposes of obviating the need for formal administrative proceedings concerning the allegations described above;
 
WHEREAS, Eagle Mortgage Group herein represents to the Commissioner that the three (3) individuals alleged to be unregistered loan originators in violation of Sections 36a-486(b) and 36a-511(b) of the Connecticut General Statutes during the period of April 2006 through May 2007 are no longer engaged in any mortgage-related activity with Eagle Mortgage Group that would require Eagle Mortgage Group to obtain licensure for such individuals from the Commissioner under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes, including but not limited to, licensure as originators under Section 36a-486(b) of the 2008 Supplement of the General Statutes, as amended by Public Acts 07-156 and 08-176; 
 
WHEREAS, Eagle Mortgage Group herein represents to the Commissioner that it has reviewed and updated its internal policies, procedures and controls for assessing whether an individual engaged in mortgage-related activity with Eagle Mortgage Group requires licensure from the Commissioner under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes, including but not limited to, licensure as originators under Section 36a-486(b) of the 2008 Supplement of the General Statutes, as amended;
 
WHEREAS, in connection with this settlement, Eagle Mortgage Group was provided the option to pay a civil penalty in the amount of Three Thousand Dollars ($3,000) in settlement of the allegations contained herein;
 
WHEREAS, the State of Connecticut is a participant in the Nationwide Mortgage Licensing System and Registry (“NMLS&R”), jointly developed by the Conference of State Bank Supervisors (“CSBS”) and the American Association of Residential Mortgage Regulators to establish a unified and modern system of mortgage licensing and registration, and is committed to the success of NLMS&R;
 
WHEREAS, in connection with this settlement, Eagle Mortgage Group was provided an alternative option to make a voluntary contribution in the amount of Three Thousand Dollars ($3,000) to the State Regulatory Registry LLC (“SRR”), a wholly-owned subsidiary of the CSBS, to support the NLMS&R;
 
WHEREAS, Eagle Mortgage Group elected to make a voluntary contribution to SRR in lieu of a civil penalty;
 
AND WHEREAS, Eagle Mortgage Group, through its execution of this Settlement Agreement, voluntarily agrees to waive any rights to a hearing upon the allegations contained in this Settlement Agreement, and waives the right to seek judicial review or otherwise challenge or contest the validity of this Settlement Agreement;
 
NOW THEREFORE, the Commissioner and Eagle Mortgage Group enter into this Settlement Agreement as follows:

1. No later than the date this Settlement Agreement is executed by Eagle Mortgage Group, Eagle Mortgage Group shall make a voluntary contribution by cashier’s check, certified check or money order in the amount of Three Thousand Dollars ($3,000) to SRR to support NMLS&R;
2. Upon entry of this Settlement Agreement, this matter will be resolved and the Commissioner will not take any future enforcement action against Eagle Mortgage Group based upon the allegations contained herein; provided that entry of this Settlement Agreement is without prejudice to the right of the Commissioner to take enforcement action against Eagle Mortgage Group based on the allegations contained herein if any representations made by Eagle Mortgage Group in this Settlement Agreement are subsequently discovered to be untrue or if Eagle Mortgage Group is not fully complying with any term or condition stated herein;
3. Nothing in the entry of this Settlement Agreement shall adversely affect the ability of Eagle Mortgage Group to apply for or obtain licenses or renewal licenses under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes, and to apply for or obtain licensure of its originators from the Commissioner;
4. 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 Eagle Mortgage Group to enforce this Settlement Agreement if the Commissioner determines that Eagle Mortgage Group is not fully complying with any term or condition stated herein.  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 20th day of January 2009.        

________/s/_________
Howard F. Pitkin
Banking Commissioner


I, Ian Williams, state on behalf of Eagle Mortgage Group, LLC, 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 Eagle Mortgage Group, LLC; that Eagle Mortgage Group, LLC agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that Eagle Mortgage Group, LLC voluntarily agrees to enter into this Settlement Agreement, expressly waiving any right to a hearing on the matters described herein.

                                          By:  ________/s/_________
                                                 Name:  Ian Williams 
                                                 Title:  President
                                                 Eagle Mortgage Group, LLC

State of:  Connecticut

County of:  New Haven

On this the 14th day of January, 2009, before me, Ann Marie Marreiros, the undersigned officer, personally appeared Ian Williams who acknowledged himself/herself to be the President of Eagle Mortgage Group, LLC, a member managed/manager managed limited liability company, and that he/she, as such Member, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the limited liability company by himself/herself as President.

In witness whereof I hereunto set my hand.

                                        ________/s/_________
                                        Notary Public
                                        Date Commission Expires:  4/30/12


Administrative Orders and Settlements