DOB: Highland Mortgage Company, LLC, Settlement Agreement

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IN THE MATTER OF:

HIGHLAND MORTGAGE
COMPANY, LLC

    ("Highland")

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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 Brokers, 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 Highland 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 Broker License, Notice of Intent to Issue Order to Cease and Desist and Notice of Right to Hearing (collectively “Notice”) against Highland, which Notice is incorporated by reference herein;
 
WHEREAS, the Notice alleged that Highland, 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 Highland to engage in the business of a mortgage broker in Connecticut from 416 Highland Avenue, Building B, Suite 8 Cheshire, Connecticut;
 
WHEREAS, on January 5, 2009, Highland received the Notice, and no request for a hearing was received by the Commissioner;
 
WHEREAS, on January 9, 2009, Highland specifically assured the Commissioner that Highland has not done any business in Connecticut as of September 29, 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, Highland 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, Highland, 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 Highland based upon the allegations contained in the Notice.
 
NOW THEREFORE, the Commissioner and Highland enter into this Settlement Agreement as follows:

1. Prior to the date this Settlement Agreement is executed by the Commissioner, Highland Mortgage Company, LLC, will surrender its mortgage broker licenses Nos. 11880 and 11881, and cease engaging in the business of a mortgage broker in Connecticut from 416 Highland Avenue, Building B, Suite 8 Cheshire, Connecticut;
2. Nothing in this Settlement Agreement shall adversely affect the ability of Highland Mortgage Company, LLC 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 Highland Mortgage Company, LLC to enforce this Settlement Agreement if the Commissioner determines that Highland Mortgage Company, LLC is not fully complying with any term or condition stated herein or if any representation made by Highland Mortgage Company, LLC 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 4th day of February 2009.            ________/s/_________
                                                     Howard F. Pitkin
                                                     Banking Commissioner



I, James Brayton, state on behalf of Highland Mortgage Company, 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 Highland Mortgage Company, LLC; and that Highland Mortgage Company, LLC agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein.                                          

                                            By:  ________/s/_________
                                                   Name:  James Brayton
                                                   Title:  Owner
                                                   Highland Mortgage Company, LLC


State of:  Connecticut

County of:  Litchfield


On this the 30 day of January 2009, before me, Kathleen M. Francis, the undersigned officer, personally appeared James Brayton, who acknowledged himself to be the Owner of Highland Mortgage Company, LLC, a limited liability company and that he, as such Owner, 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 as Highland Mortgage Company, LLC.

In witness whereof I hereunto set my hand.


                                         ________/s/_________
                                         Notary Public / Commissioner of the Superior Court
                                         Date Commission Expires:  October 31, 2012


Administrative Orders and Settlements