DOB: S & S Funding, LLC d/b/a Connecticut Property Lenders, Settlement Agreement

* * * * * * * * * * * * * * * * * * * * *

IN THE MATTER OF:

S & S FUNDING, LLC d/b/a
CONNECTICUT PROPERTY LENDERS

    ("Connecticut Property Lenders")

* * * * * * * * * * * * * * * * * * * * *

*
*
*
*
*
*
*
*
*
*

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, Connecticut Property Lenders was a limited liability company licensed by the Commissioner as a mortgage correspondent lender under Part I of Chapter 668, Sections 36a-485 et. seq. of the Connecticut General Statutes;
 
WHEREAS, in February 2008, the Commissioner, through the Consumer Credit Division of the Department of Banking, conducted an examination pursuant to Section 36a-17 of the Connecticut General Statutes into the activities of Connecticut Property Lenders 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, as a result of such examination, the Commissioner alleged that Connecticut Property Lenders employed or retained, on or about January 26, 2007, one (1) individual as a loan originator without registering such individual, in violation of Sections 36a-486(b) and 36a-511(b) of the then applicable Connecticut General Statutes;
 
WHEREAS, the Commissioner’s unregistered loan originator allegation would have supported initiation of enforcement proceedings against Connecticut Property Lenders, including proceedings to revoke Connecticut Property Lender’s license pursuant to Sections 36a-494(a) and 36a-51 of the Connecticut General Statutes, issue a cease and desist order against Connecticut Property Lenders pursuant to Sections 36a-494(b) and 36a-52(a) of the Connecticut General Statutes, and impose a civil penalty of up to one hundred thousand dollars ($100,000) per violation on Connecticut Property Lenders pursuant to Sections 36a-494(b) and 36a-50(a) of the Connecticut General Statutes;
 
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 Connecticut Property Lenders acknowledged the possible consequences of formal administrative proceedings;
 
WHEREAS, Connecticut Property Lenders was provided the option to pay a civil penalty in the amount of One Thousand Dollars ($1,000) in settlement of the allegation contained herein;
 
WHEREAS, the State of Connecticut is a participant in the Nationwide Mortgage Licensing System and Registry (“NMLS&R”), jointly developed by the Conference of State Bank Supervisors (“CSBS”) and the American Association of Residential Mortgage Regulators to establish a unified and modern system of mortgage licensing and registration, and is committed to the success of NMLS&R;
 
WHEREAS, Connecticut Property Lenders was provided an alternative option to make a voluntary contribution in the amount of One Thousand Dollars ($1,000) to the State Regulatory Registry LLC (“SRR”), a wholly-owned subsidiary of CSBS, to support NMLS&R;
 
WHEREAS, Connecticut Property Lenders elected to make a voluntary contribution to SRR in lieu of a civil penalty to resolve the allegations that it failed to register a loan originator, but did not do so;
 
WHEREAS, Connecticut Property Lenders is no longer licensed with the Commissioner, is no longer in business, and has dissolved;
 
WHEREAS, Shawn San Miguel, former Managing Member of Connecticut Property Lenders, desires to voluntarily enter into this Settlement Agreement on behalf of Connecticut Property Lenders, without admitting or denying the unregistered loan originator allegation set forth herein, and to resolve  that allegation;
 
AND WHEREAS, Shawn San Miguel, on behalf of Connecticut Property Lenders, through execution of this Settlement Agreement, waives the right to seek judicial review or otherwise challenge or contest the validity of this Settlement Agreement;
 
NOW THEREFORE, the Commissioner and Shawn San Miguel, on behalf of Connecticut Property Lenders, enter into this Settlement Agreement as follows:

1. No later than the date this Settlement Agreement is executed by Shawn San Miguel on behalf of Connecticut Property Lenders, Shawn San Miguel on behalf of Connecticut Property Lenders shall make a voluntary contribution by cashier’s check, certified check or money order in the amount of One Thousand Dollars ($1,000) to SRR to support NMLS&R;
2. Upon entry of this Settlement Agreement, this matter will be resolved.  Nothing in the entry of this Settlement Agreement shall adversely affect the ability of Shawn San Miguel to apply for or obtain licenses from the Commissioner;
3. Notwithstanding paragraph 2 herein, execution of this Settlement Agreement is without prejudice to the right of the Commissioner to take action to enforce the Settlement Agreement if the Commissioner determines that Shawn San Miguel on behalf of Connecticut Property Lenders 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 20th day of April 2009.                ________/s/_________
                                                     Howard F. Pitkin
                                                     Banking Commissioner



I, Shawn San Miguel, have read the foregoing Settlement Agreement; that I know and fully understand its contents; that I agree freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that I voluntarily agree to enter into this Settlement Agreement, expressly waiving any right to a hearing on the matters described herein.                            

                                            
                                    By:  ________/s/_________
                                           Shawn San Miguel


State of:  Connecticut

County of:  New Haven


On this the 13th day of April 2009, before me, Denise June Carroll, the undersigned officer, personally appeared Shawn San Miguel, known to me (or satisfactorily proven) to be the person whose name Shawn San Miguel subscribed to the within instrument and acknowledge that he executed the same for the purposes therein contained.

In witness whereof I hereunto set my hand.


                                     ________/s/_________
                                     Notary Public
                                     Date Commission Expires:  01/31/2013


Administrative Orders and Settlements