DOB: Bentley Mortgage Corp., Settlement Agreement

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IN THE MATTER OF:

BENTLEY MORTGAGE CORP.

    ("Bentley 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, Bentley Mortgage is a corporation 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 September 2007, 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 Bentley 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 Bentley Mortgage employed or retained, during the period of October 20, 2006 through August 11, 2007, at least three (3) individuals as originators without registering them, in violation of Sections 36a-486(b) and 36a-511(b) of the then applicable Connecticut General Statutes;
 
WHEREAS, the Commissioner believes that the unregistered originator allegations would support initiation of enforcement proceedings against Bentley Mortgage, including proceedings to revoke Bentley Mortgage’s license pursuant to Sections 36a-494(a) and 36a-51 of the Connecticut General Statutes, issue a cease and desist order against Bentley 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 Bentley 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 Bentley Mortgage acknowledge the possible consequences of formal administrative proceedings;
 
WHEREAS, Bentley 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, Bentley 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 Bentley 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, Bentley 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 the Connecticut General Statutes during the period of October 20, 2006 through August 11, 2007, are no longer engaged in any mortgage-related activity with Bentley Mortgage that would require such individuals to be so licensed;
 
WHEREAS, in connection with this settlement, Bentley Mortgage was provided the option to pay a civil penalty in the amount of Three Thousand Dollars ($3,000) in settlement of the allegations 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, in connection with this settlement, Bentley Mortgage was provided an alternative option to make a voluntary contribution in the amount of Three Thousand Dollars ($3,000) to the State Regulatory Registry LLC (“SRR”), a wholly-owned subsidiary of CSBS, to support NMLS&R;
 
WHEREAS, Bentley Mortgage elected to make a voluntary contribution to SRR in lieu of a civil penalty;
 
AND WHEREAS, Bentley 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 Bentley Mortgage enter into this Settlement Agreement as follows:

1.
Bentley Mortgage shall make two voluntary contributions by cashier’s check, certified check or money order each in the amount of One Thousand Five Hundred Dollars ($1,500) for a total contribution in the amount of Three Thousand Dollars ($3,000), to SRR to support NMLS&R in accordance with the following schedule:
  First contribution of $1,500 on or before June 15, 2009;
  Second contribution of $1,500 on or before July 15, 2009;
2. Upon entry of this Settlement Agreement, this matter will be resolved and the Commissioner will not take any future enforcement action against Bentley 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 Bentley Mortgage based on the allegations contained herein if any representations made by Bentley Mortgage in this Settlement Agreement are subsequently discovered to be untrue or if Bentley Mortgage is not fully complying with any term or condition stated herein;
3. Nothing in the entry of this Settlement Agreement shall adversely affect the ability of Bentley 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;
4. Notwithstanding paragraph 2 herein, execution of this Settlement Agreement is without prejudice to the right of the Commissioner to take enforcement action against Bentley Mortgage to enforce this Settlement Agreement if the Commissioner determines that Bentley 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 26th day of May 2009.                ________/s/_________
                                                     Howard F. Pitkin
                                                     Banking Commissioner



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

                                             By:  ________/s/_________
                                                   Name:  Thomas V. Esposito
                                                   Title:  President
                                                   Bentley Mortgage Corp.

State of:  Connecticut

County of:  Litchfield


On this the 21st day of May, 2009, before me, Seamus Walsh, the undersigned officer, personally appeared Thomas Esposito who acknowledged himself/herself to be the President of Bentley Mortgage Corp., a corporation, and that he/she, 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/herself as ____________________________.

In witness whereof I hereunto set my hand.

                                                   ________/s/_________
                                                   Notary Public
                                                   Date Commission Expires:  5/31/09


Administrative Orders and Settlements