DOB: Prestige Mortgage Limited Liability Company, Settlement Agreement

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IN THE MATTER OF:

PRESTIGE MORTGAGE
LIMITED LIABILITY COMPANY

    ("Prestige Mortgage")

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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-534c, inclusive, of the Connecticut General Statutes, “Mortgage Lenders, Correspondent Lenders, Brokers and Loan Originators”;
 
WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking (“Division”), conducted an investigation pursuant to Section 36a-17 of the Connecticut General Statutes into the activities of Prestige Mortgage 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 31, 2008, the Commissioner, acting pursuant to Section 36a-52(b) of the 2008 Supplement to the General Statutes, Section 4-182(c) of the Connecticut General Statutes, Section 36a-494(a)(1) of the 2008 Supplement to the General Statutes, as amended by Public Acts 07-91, 07-156 and 08-176, Sections 36a-51 and 36-52(a) of the 2008 Supplement to the General Statutes, and Section 36a-50(a) of the Connecticut General Statutes, issued a Temporary Order to Cease and Desist, Order of Summary Suspension, Notice of Intent to Revoke Mortgage Lender 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 Prestige Mortgage, which Notice is incorporated herein by reference;
 
WHEREAS, the Notice alleged that Prestige Mortgage failed to promptly notify the Commissioner, in writing, or promptly file with the Nationwide Mortgage Licensing System (“NMLS”), the fact that one of its members had been convicted of a crime;
 
WHEREAS, the Notice also alleged that such failure by Prestige Mortgage constitutes a failure to promptly notify the Commissioner of any change in the information provided in its application for most recent renewal of its license, in violation of Section 36a-490(b) of the Connecticut General Statutes, prior to July 1, 2008, and a failure to promptly file its receipt of notification of the filing of a felony conviction of one of its members with NMLS or promptly notify the Commissioner in writing, in violation of Section 36a-490(c) of the 2008 Supplement to the General Statutes, as amended by Public Acts 07-91, 07-156 and 08-176.  Such violation constitutes grounds for the Commissioner to revoke Prestige Mortgage’s license as a mortgage lender pursuant to Section 36a-494(a)(1) of the 2008 Supplement to the General Statutes, as amended, and Section 36a-51 of the 2008 Supplement to the General Statutes, and forms a basis to issue an order to cease and desist pursuant to Section 36a-52(a) of the 2008 Supplement to the General Statutes, and impose a civil penalty against Prestige Mortgage pursuant to Section 36a-50(a) of the Connecticut General Statutes;
 
WHEREAS, the Notice also alleged that Matthew Listro (“Listro”), one of two members of Prestige Mortgage, provided financial information and documents to Chase Manhattan Mortgage Corporation that he knew to be materially false and fraudulent for the purposes of obtaining a mortgage on behalf of a client of Prestige Mortgage (“Scheme”);
 
WHEREAS, the Notice also alleged that Prestige Mortgage’s participation in the Scheme, through Listro, is conduct that illustrates that Prestige Mortgage and a member of Prestige Mortgage lack financial responsibility, character, reputation, integrity and general fitness such as to warrant belief that Prestige Mortgage’s business will not be operated soundly and efficiently, in the public interest and consistent with the purposes of Sections 36a-485 to 36a-498a, inclusive, of the Connecticut General Statutes.  Such conduct constitutes grounds for the Commissioner to revoke Prestige Mortgage’s license as a mortgage lender pursuant to Section 36a-494(a)(1) of the 2008 Supplement to the General Statutes, as amended, and Section 36a-51 of the 2008 Supplement to the General Statutes;
 
WHEREAS, the Notice further alleged that Prestige Mortgage’s participation in the Scheme, through Listro, constitutes a misrepresentation, concealment, suppression, intentional omission or other intentional failure to disclose the material particulars of a mortgage loan transaction pursuant to Section 36a-494(a)(1) of the 2008 Supplement to the General Statutes, as amended.  Such conduct constitutes grounds for the Commissioner to revoke Prestige Mortgage’s license as a mortgage lender pursuant to Section 36a-494(a)(1) of the 2008 Supplement to the General Statutes, as amended, and Section 36a-51 of the 2008 Supplement to the General Statutes;
 
WHEREAS, on January 2, 2009, the Notice was received by Prestige Mortgage, and no request for a hearing has been received to this date by the Commissioner;
 
WHEREAS, on January 22, 2009, Prestige Mortgage contacted the Division and responded to the Notice by letter dated January 26, 2009;
 
WHEREAS, Prestige Mortgage has demonstrated economic hardship, such that the Commissioner believes that Prestige Mortgage is financially incapable of paying any civil penalty;
 
WHEREAS, the Commissioner has determined that no civil penalty will be imposed on Prestige Mortgage 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, both the Commissioner and Prestige Mortgage acknowledge the possible consequences of formal administrative proceedings;
 
WHEREAS, Prestige Mortgage and Listro agree to voluntarily enter into this Settlement Agreement without admitting or denying any allegations contained in the Notice and set forth herein, and solely for the purpose of obviating the need for formal administrative proceedings concerning the allegations described above;
 
WHEREAS, Prestige Mortgage and Listro, through their execution of this Settlement Agreement, voluntarily agree to waive any rights to a hearing upon the allegations contained in the Notice and this Settlement Agreement, 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 Prestige Mortgage based upon the allegations contained in the Notice.

NOW THEREFORE, the Commissioner, Prestige Mortgage and Listro enter into this Settlement Agreement as follows:

1. Effective on the date this Settlement Agreement is executed by the Commissioner, Prestige Mortgage is BARRED for a period of ten (10) years from acting in or from Connecticut as a mortgage broker, mortgage correspondent lender, mortgage lender or mortgage loan originator as such terms are defined in Section 36a-485 of the Connecticut General Statutes, and Listro is BARRED for a period of ten (10) years from being a director, officer, general partner, member or sole proprietor of any entity required to be licensed pursuant to Part I of Chapter 668, Sections 36a-485 to 36a-534c, inclusive, of the Connecticut General Statutes, and from any position that would require licensure pursuant to Part I of Chapter 668 of the Connecticut General Statutes;
2. Upon entry of this Settlement Agreement, this matter will be resolved and the Commissioner will not take any future enforcement action against Prestige Mortgage 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 Prestige Mortgage based on the allegations contained herein if any representations made by Prestige Mortgage in this Settlement Agreement are subsequently discovered to be untrue or if Prestige Mortgage 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; and
3. Notwithstanding paragraph 2 herein, execution of this Settlement Agreement is without prejudice to the right of the Commissioner to take enforcement action against Prestige Mortgage and Listro to enforce this Settlement Agreement if the Commissioner determines that Prestige Mortgage or Listro 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 13th day of April 2009.        

________/s/_________
Howard F. Pitkin
Banking Commissioner

 

I, Matthew Listro, state on behalf of Prestige Mortgage Limited Liability Company, 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 Prestige Mortgage Limited Liability Company; and that Prestige Mortgage Limited Liability Company agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein.

                                           By:  ________/s/_________
                                                 Name:  Matthew Listro 
                                                 Title:  Manager/Member
                                                 Prestige Mortgage Limited Liability Company

 

State of:  Connecticut

County of:  Hartford  ss:  East Hartford

On this the 7th day of April 2009, before me, Teresa A. Cerasoli, the undersigned officer, personally appeared Matthew Listro, who acknowledged himself to be the Manager/Member of Prestige Mortgage Limited Liability Company, 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 himself as Manager/Member.

In witness whereof I hereunto set my hand.

                                        ________/s/_________
                                        Notary Public
                                        Date Commission Expires:  12/31/2012

 

I, Matthew Listro, 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.

                                                 ________/s/_________
                                                 Matthew Listro 

 

State of:  Connecticut

County of:  Hartford  ss:  East Hartford

On this the 7th day of April 2009, before me, Teresa A. Cerasoli, the undersigned officer, personally appeared Matthew Listro, known to me (or satisfactorily proven) to be the person whose name Matthew Listro 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
                                        Date Commission Expires:  12/31/2012


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