DOB: Hamilton Mortgage Company, Settlement Agreement

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IN THE MATTER OF:

HAMILTON MORTGAGE COMPANY

    ("Hamilton 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, Hamilton Mortgage is a corporation that is currently 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 October 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 Hamilton 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, as a result of such examination, the Commissioner alleges that Hamilton Mortgage employed or retained, during the period of May 26, 2005 through October 1, 2008, eight (8) individuals as originators either without registering them in violation of Sections 36a-486(b) and 36a-511(b) of the then applicable Connecticut General Statutes, or without licensing them as mortgage loan originators in violation of Section 36a-486(b) of the Connecticut General Statutes;
 
WHEREAS, as a result of such examination, the Commissioner additionally alleges that Hamilton Mortgage issued advertising in violation of 12 C.F.R. Section 226.24 of Regulation Z, which implements the Federal Truth in Lending Act, contained in Title I of the Consumer Credit Protection Act (15 U.S.C. 1601 et seq.) and which constitutes a violation of Section 36a-678(a) of the Connecticut General Statutes;
 
WHEREAS, the Commissioner believes that the unregistered originator, unlicensed mortgage loan originator and advertising allegations would support initiation of enforcement proceedings against Hamilton Mortgage, including proceedings to revoke Hamilton Mortgage’s license pursuant to Sections 36a-494(a) and 36a-51 of the Connecticut General Statutes, issue a cease and desist order against Hamilton Mortgage 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 Hamilton Mortgage 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 Hamilton Mortgage acknowledge the possible consequences of formal administrative proceedings;
 
WHEREAS, Hamilton Mortgage agrees to voluntarily enter into this Settlement Agreement without admitting or denying any allegations set forth herein, and solely for the purposes of obviating the need for formal administrative proceedings concerning the allegations described above;
 
WHEREAS, Hamilton Mortgage herein represents to the Commissioner that it has reviewed and updated its internal policies, procedures and controls for assessing whether an individual engaged in mortgage-related activity with Hamilton Mortgage requires licensure from the Commissioner under Part I of Chapter 668, Sections 36a-485 et seq. of the Connecticut General Statutes, including but not limited to licensure as a mortgage loan originator under Section 36a-486(b) of the Connecticut General Statutes;
 
WHEREAS, Hamilton Mortgage herein represents to the Commissioner that the individuals alleged to be unregistered originators in violation of Sections 36a-486(b) and 36a-511(b) of then applicable Connecticut General Statutes, or alleged to be unlicensed mortgage loan originators in violation of Section 36a-486(b) of the Connecticut General Statutes, during the period of May 26, 2005 through October 1, 2008, are either currently licensed as mortgage loan originators with Hamilton Mortgage, or are no longer engaged in any mortgage-related activity with Hamilton Mortgage that would require such individuals to be so licensed;
 
WHEREAS, Hamilton Mortgage herein represents that it has corrected the advertising alleged to be violative and has reviewed and updated its internal policies, procedures and controls to ensure compliance with laws applicable to its advertising;
 
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, in connection with settlement of the unregistered originator allegations and the unlicensed mortgage loan originator allegations contained herein, Hamilton Mortgage was provided the option to pay a civil penalty in the amount of Eight Thousand Dollars ($8,000) or to make a voluntary contribution in the amount of Eight Thousand Dollars ($8,000) to the State Regulatory Registry LLC (“SRR”), a wholly-owned subsidiary of CSBS, to support NMLS&R;
 
WHEREAS, Hamilton Mortgage elected to make a voluntary contribution to SRR in lieu of a civil penalty to resolve the unregistered originator and unlicensed mortgage loan originator allegations contained herein;
 
WHEREAS, in connection with settlement of the advertising allegations contained herein, Hamilton Mortgage agrees to pay a civil penalty of One Thousand Dollars ($1,000);
 
AND WHEREAS, Hamilton Mortgage, through its execution of this Settlement Agreement, voluntarily agrees to waive any rights to a hearing upon the allegations contained in this Settlement Agreement, and waives the right to seek judicial review or otherwise challenge or contest the validity of this Settlement Agreement.
 
NOW THEREFORE, the Commissioner and Hamilton Mortgage enter into this Settlement Agreement as follows:

1. No later than the date this Settlement Agreement is executed by Hamilton Mortgage, Hamilton Mortgage shall remit to the Department of Banking, by cashier’s check, certified check or money order made payable to “Treasurer, State of Connecticut”, the sum of One Thousand Dollars ($1,000) as a civil penalty;
2.
Hamilton Mortgage shall make voluntary contributions by cashier’s check, certified check or money order in the total amount of Eight Thousand Dollars ($8,000) to SRR to support NMLS&R in accordance with the following schedule:
 $500 on or before May 31, 2009; an additional
 $1,500 on or before June 30, 2009; an additional
 $1,500 on or before July 31, 2009; an additional
 $1,500 on or before August 31, 2009; an additional
 $1,500 on or before September 30, 2009; and an additional
 $1,500 on or before October 31, 2009;
3. Upon entry of this Settlement Agreement, this matter will be resolved and the Commissioner will not take any future enforcement action against Hamilton 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 Hamilton Mortgage based on the allegations contained herein if any representations made by Hamilton Mortgage in this Settlement Agreement are subsequently discovered to be untrue or if Hamilton Mortgage is not fully complying with any term or condition stated herein;
4. Nothing in the entry of this Settlement Agreement shall adversely affect the ability of Hamilton Mortgage to apply for or obtain licenses or renewal licenses under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes, and to apply for or obtain licensure of its mortgage loan originators from the Commissioner;
5. Notwithstanding paragraph 3 herein, execution of this Settlement Agreement is without prejudice to the right of the Commissioner to take enforcement action against Hamilton Mortgage to enforce this Settlement Agreement if the Commissioner determines that Hamilton 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.

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 7th day of May 2009.        

________/s/_________
Howard F. Pitkin
Banking Commissioner


I, Terrence Hastings, state on behalf of Hamilton Mortgage 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 Hamilton Mortgage Company; that Hamilton Mortgage Company agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that Hamilton Mortgage Company voluntarily agrees to enter into this Settlement Agreement, expressly waiving any right to a hearing on the matters described herein.

                                          By:  ________/s/_________
                                                 Name:  Terrence Hastings
                                                 Title:  President
                                                 Hamilton Mortgage Company

State of:  CT

County of:  Fairfield


On this the 29th day of April 2009, before me, Lauretta Cianflone, the undersigned officer, personally appeared Terrence Hastings who acknowledged himself to be the President of Hamilton Mortgage Company, a corporation, and that he, as such ____________________ being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself as President.

In witness whereof I hereunto set my hand.

                                        ________/s/_________
                                        Notary Public
                                        Date Commission Expires:  November 30, 2011


Administrative Orders and Settlements