DOB: Signature Mortgage Group, LLC, Lisette S. Cherry, Settlement Agreement

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IN THE MATTER OF:

SIGNATURE MORTGAGE
GROUP, LLC ("Signature")

LISETTE S. CHERRY ("Cherry")

    (collectively "Respondents")

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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 (“Division”) of the Department of Banking (“Department”), conducted an investigation pursuant to Section 36a-17 of the Connecticut General Statutes into the activities of Respondents to determine if they had violated, were violating or were about to violate the provisions of the Connecticut General Statutes within the jurisdiction of the Commissioner;
 
WHEREAS, Cherry was registered and licensed with the Department as a loan originator in Connecticut with Apex Lending, Inc., a licensed mortgage correspondent lender in Connecticut;
 
WHEREAS, Signature, through its manager/member, Cherry, filed applications for first and secondary mortgage broker licenses in Connecticut;
 
WHEREAS, on September 4, 2008, the Commissioner, acting pursuant to Section 36a-494(a)(2) of the 2008 Supplement to the General Statutes, as amended by Public Acts 07-91, 07-156 and 08-176, Sections 36a-51 and 36a-52(a) 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 Loan Originator License, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (collectively “Notice”) against Respondents, which Notice is incorporated herein by reference;
 
WHEREAS, the Notice alleged that Respondents made statements to the Commissioner which were, at the time and in the light of the circumstances under which they were made, false or misleading in a material respect, in violation of Section 36a-53a of the Connecticut General Statutes;
 
WHEREAS, the Notice indicated that if the allegations against Respondents were proven, the Commissioner would issue an order revoking Cherry’s mortgage loan originator license in Connecticut, issue an order that Respondents cease and desist from violating Section 36a-53a of the Connecticut General Statutes, and may order that the maximum civil penalty of One Hundred Thousand Dollars ($100,000) be imposed upon each Respondent;
 
WHEREAS, on September 12, 2008, the Notice was deemed received by Respondents and no request for a hearing was received by the Commissioner;
 
WHEREAS, on October 10, 2008, Respondents contacted the Division;
 
WHEREAS, Respondents have demonstrated economic hardship, such that the Commissioner believes that Respondents are financially incapable of paying the maximum civil penalty;
 
WHEREAS, the Commissioner has determined that no civil penalty will be imposed on Respondents based on such economic hardship;
 
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, Respondents agree 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, Respondents, through their execution of this Settlement Agreement, voluntarily agree to waive any rights to a hearing upon the allegations contained in the Notice, and waive 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 Respondents based upon the allegations contained in the Notice.
 
NOW THEREFORE, the Commissioner and Respondents enter into this Settlement Agreement as follows:

1. Effective on the date this Settlement Agreement is executed by the Commissioner, Respondents are BARRED for a period of five (5) years from acting as a mortgage broker, mortgage correspondent lender, mortgage lender or mortgage loan originator in Connecticut as such terms are defined in Section 36a-485 of the 2008 Supplement to the General Statutes, as amended by Public Acts 07-156 and 08-176, and from being an officer, general partner, member, sole proprietor or employee of any entity required to be licensed pursuant to Part I of Chapter 668, Sections 36a-485 to 36a-534a, inclusive, of the Connecticut General Statutes, “Mortgage Lenders, Brokers and Originators”; and
2.
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 Signature or Cherry to enforce this Settlement Agreement if the Commissioner determines that Signature or Cherry is not fully complying with any term or condition stated herein or if any representation made by Signature or Cherry and reflected herein are 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 27th day of February 2009.           ________/s/_________
                                                     Howard F. Pitkin
                                                     Banking Commissioner



I, Lisette S. Cherry, state on behalf of Signature Mortgage, 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 Signature Mortgage, LLC; and that Signature Mortgage, LLC agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein.
                                            

                                            By:  ________/s/_________
                                                   Name:  Lisette S. Cherry
                                                   Title:  Manager/Member
                                                   Signature Mortgage, LLC


State of:  Connecticut

County of:  Hartford


On this the 26 day of February 2009, before me, Catherine Williams, the undersigned officer, personally appeared Lisette S. Cherry, who acknowledged herself to be the Manager/Member of Signature Mortgage, LLC, a limited liability company, and that she, as such Manager/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 herself as Manager/Member.

In witness whereof I hereunto set my hand.


                                         ________/s/_________
                                         Notary Public / Commissioner of the Superior Court
                                         Date Commission Expires:  May 31, 2011

 

I, Lisette S. Cherry, state that I have read the foregoing Settlement Agreement; that I know and fully understand its contents; and that I agree freely and without threat or coercion of any kind to comply with the terms and conditions stated herein.                                            

                                            By:  ________/s/_________
                                                   Lisette S. Cherry
                                                   


State of:  Connecticut

County of:  Hartford


On this the 26 day of February 2009, before me, Catherine Williams, the undersigned officer, personally appeared Lisette S. Cherry, known to me (or satisfactorily proven) to be the person whose name Lisette S. Cherry is subscribed to the within instrument and acknowledged that she executed the same for the purposes therein contained.

In witness whereof I hereunto set my hand.


                                         ________/s/_________
                                         Notary Public / Commissioner of the Superior Court
                                         Date Commission Expires:  May 31, 2011


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