DOB: Universal Financial Group, Inc., Settlement Agreement

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IN THE MATTER OF:

UNIVERSAL FINANCIAL
GROUP, INC.

   ("Universal Financial 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 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 Universal Financial 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, on December 5, 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 Universal Financial Group, which Notice is incorporated by reference herein;
 
WHEREAS, the Notice alleged that Universal Financial Group, 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 Universal Financial Group to act as a mortgage lender in Connecticut from 425 Quadrangle Drive, Bolingbrook, Illinois;
 
WHEREAS, on December 16, 2008, Universal Financial Group received the Notice, and no request for a hearing was received by the Commissioner;
 
WHEREAS, on December 23, 2008, Universal Financial Group specifically assured the Commissioner that Universal Financial Group has not done any business in Connecticut since October 20, 2008;
 
WHEREAS, Section 4-177(c) of the Connecticut General Statutes and Section 36a-1-5 5(a) of the Regulations of Connecticut State Agencies provide that a contested case may be resolved by agreed settlement, unless precluded by law;
 
WHEREAS, Universal Financial Group 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, Universal Financial Group, 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 Universal Financial Group based upon the allegations contained in the Notice.
 
NOW THEREFORE, the Commissioner and Universal Financial Group enter into this Settlement Agreement as follows:

1. Prior to the date this Settlement Agreement is executed by the Commissioner, Universal Financial Group will surrender its mortgage lender licenses Nos. 20431 and 20561, and cease engaging in the business of a mortgage lender in Connecticut from 425 Quadrangle Drive, Bolingbrook, Illinois;
2. Nothing in this Settlement Agreement shall adversely affect the ability of Universal Financial Group 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 Universal Financial Group to enforce this Settlement Agreement if the Commissioner determines that Universal Financial Group is not fully complying with any term or condition stated herein or if any representation made by Universal Financial Group 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 26th day of January 2009.        

________/s/_________
Howard F. Pitkin
Banking Commissioner



I, Joseph M. Savino, state on behalf of Universal Financial Group, Inc. 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 Universal Financial Group, Inc.; and that Universal Financial Group, Inc. agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein.

                                          By:  ________/s/_________
                                                 Name:  Joseph M. Savino 
                                                 Title:  President
                                                 Universal Financial Group, Inc.

State of:  Illinois

County of:  Will

On this the 22 day of January 2009, before me, Alondra Barrios, the undersigned officer, personally appeared Joseph M. Savino, who acknowledged himself/herself to be the President of Universal Financial Group, Inc., 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:  08/21/12


Administrative Orders and Settlements