DOB: Michael Schulman d/b/a New England Financial, Order Revoking Mortgage Broker License and Order Imposing Civil Penalty

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IN THE MATTER OF:

MICHAEL SCHULMAN d/b/a
NEW ENGLAND FINANCIAL

    ("Respondent")

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ORDER REVOKING MORTGAGE
BROKER LICENSE

AND

ORDER IMPOSING CIVIL PENALTY


I.  PRELIMINARY STATEMENT

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 of the activities of Respondent, pursuant to the authority granted by Section 36a-17 of the Connecticut General Statutes, to determine if he 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 16, 2008, the Commissioner, acting pursuant to Sections 36a-494(a)(1)(C) and 36a-494(b) of the 2008 Supplement to the General Statutes, as amended by Public Acts 07-91, 07-156 and 08-176, Section 36a-51 of the 2008 Supplement to the General Statutes, and Section 36a-50(a) of the Connecticut General Statutes, issued a Notice of Intent to Revoke Mortgage Broker License, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (collectively “Notice”) against Respondent, which Notice is incorporated herein by reference;
 
WHEREAS, on December 16, 2008, the Notice was sent by registered mail, return receipt requested, to Respondent (Registered Mail No. RB028035574US);
 
WHEREAS, the Notice provided Respondent with the opportunity for a hearing and stated that if a hearing was not requested within 14 days of its receipt, the Commissioner would issue an order revoking Respondent’s mortgage broker license in Connecticut and may order that the maximum civil penalty of Thirty Thousand Dollars ($30,000) be imposed upon Respondent;
 
WHEREAS, on December 29, 2008, the Notice was returned marked “Returned to Sender – Not Deliverable As Addressed – Unable To Forward”;
 
WHEREAS, Section 36a-51(a) of the 2008 Supplement to the General Statutes provides, in pertinent part, that “[t]he notice shall be deemed received by the licensee on the earlier of the date of actual receipt or seven days after mailing or sending”;
 
WHEREAS, Section 36a-50(a)(1) of the Connecticut General Statutes provides, in pertinent part, that “[t]he notice shall be deemed received by the person on the earlier of the date of actual receipt or seven days after mailing or sending”;
 
WHEREAS, Respondent failed to request a hearing within the prescribed time period;
 
WHEREAS, the Commissioner alleged in the Notice that Respondent’s employment or retention of a loan originator absent registration or licensure constitutes a violation of Section 36a-486(b) of the 2008 Supplement to the General Statutes, as amended by Public Acts 07-156 and 08-176, which constitutes grounds to revoke Respondent’s mortgage broker license pursuant to Section 36a-494(a)(1)(C) of the 2008 Supplement to the General Statutes, as amended, and Section 36a-51 of the 2008 Supplement to the General Statutes, and forms the basis to impose a civil penalty against Respondent 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, the Commissioner alleged in the Notice that Respondent’s failure to respond to complaints and provide the Commissioner with the information requested on five loan files constitutes a violation of Section 36a-17(d) of the Connecticut General Statutes, which constitutes grounds to revoke Respondent’s mortgage broker license pursuant to Section 36a-494(a)(1)(C) of the 2008 Supplement to the General Statutes, as amended, and Section 36a-51 of the 2008 Supplement to the General Statutes, and forms the basis to impose a civil penalty against Respondent pursuant to Section 36a-50(a) of the Connecticut General Statutes;
 
WHEREAS, Section 36a-51(b) of the 2008 Supplement to the General Statutes provides, in pertinent part, that “[i]f the licensee does not request a hearing within the time specified in the notice . . . the commissioner shall . . . revoke . . . the license.  No such license shall be . . . revoked except in accordance with the provisions of chapter 54”;
 
WHEREAS, Section 36a-50(a)(2) of the Connecticut General Statutes provides, in pertinent part, that “[i]f such person does not request a hearing within the time specified in the notice . . . the commissioner may, as the facts require, order that a civil penalty not exceeding one hundred thousand dollars per violation be imposed upon such person”;
 
WHEREAS, Section 36a-50(a)(3) of the Connecticut General Statutes provides, in pertinent part, that “[e]ach action undertaken by the commissioner under this subsection shall be in accordance with the provisions of chapter 54”;
 
AND WHEREAS, Section 36a-1-31(a) of the Regulations of Connecticut State Agencies provides, in pertinent part, that “[w]hen a party fails to request a hearing within the time specified in the notice, the allegations against the party may be deemed admitted.  Without further proceedings or notice to the party, the commissioner shall issue a final decision in accordance with section 4-180 of the Connecticut General Statutes and section 36a-1-52 of the Regulations of Connecticut State Agencies”.


II.  FINDINGS OF FACT AND CONCLUSIONS OF LAW

1.
The Commissioner finds that the matters asserted as set forth in paragraphs 1 through 10, inclusive, of Section II of the Notice shall constitute findings of fact within the meaning of Section 4-180(c) of the Connecticut General Statutes, and that the conclusions as set forth in paragraphs 1 and 2 of Section III of the Notice shall constitute conclusions of law within the meaning of Section 4-180(c) of the Connecticut General Statutes and Section 36a-1-52 of the Regulations of Connecticut State Agencies.
2.
The Commissioner finds that Respondent has engaged in acts or conduct which, pursuant to Sections 36a-494(a)(1)(C) of the 2008 Supplement to the General Statutes, as amended, and Section 36a-51 of the 2008 Supplement to the General Statutes, constitute sufficient grounds to revoke Respondent’s mortgage broker license in Connecticut.
3.
The Commissioner finds that Respondent has engaged in acts or conduct which, pursuant to Section 36a-50(a) of the Connecticut General Statutes, forms the basis to issue an order imposing a civil penalty against Respondent. 
4.
The Commissioner finds that the Notice was given in compliance with Section 36a-51 of the 2008 Supplement to the General Statutes and Sections 36a-50(a) and 4-177 of the Connecticut General Statutes.
 

III.  ORDER

Having read the record, I HEREBY ORDER, pursuant to Sections 36a-494 of the 2008 Supplement to the General Statutes, as amended, 36a-51(b) of the 2008 Supplement to the General Statutes and 36a-50(a)(2) of the Connecticut General Statutes that:

1.
The license of Michael Schulman d/b/a New England Financial, to act as a mortgage broker in Connecticut be and is hereby REVOKED;
2.
A CIVIL PENALTY of Thirty Thousand Dollars ($30,000) be imposed against Michael Schulman d/b/a New England Financial to be remitted to the Department of Banking by cashier’s check, certified check or money order, made payable to “Treasurer, State of Connecticut”, no later than 45 days from the date the Order is mailed; and
3.
This Order shall become effective when mailed.
 


Dated at Hartford, Connecticut
this 4th day of February 2009.                   ________/s/_________
                                                            Howard F. Pitkin
                                                            Banking Commissioner



This Order was mail by certified mail,
return receipt requested, to Respondent
on February 5, 2009.


Michael Schulman d/b/a         Certified Mail No. 70031680000085237387
New England Financial
194 Post Road West
Westport, Connecticut 06880


Administrative Orders and Settlements