DOB: Allen McCollum, Jr. d/b/a Atlantic Mortgage Lenders, Settlement Agreement

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IN THE MATTER OF:

ALLEN MCCOLLUM, JR. d/b/a
ATLANTIC MORTGAGE LENDERS

    ("Atlantic Mortgage Lenders")

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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, Atlantic Mortgage Lenders is a sole proprietorship currently licensed by the Commissioner as a mortgage broker under Part I of Chapter 668, Sections 36a-485 et seq. of the Connecticut General Statutes;
 
WHEREAS, in November 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 Atlantic Mortgage 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 alleges that Atlantic Mortgage Lenders employed or retained, during the period of May 2006 into 2007, two (2) 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 Atlantic Mortgage Lenders, including proceedings to revoke and/or refuse to renew Atlantic Mortgage Lenders’ license pursuant to Sections 36a-494(a) and 36a-51 of the Connecticut General Statutes, issue a cease and desist order against Atlantic Mortgage 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 Atlantic Mortgage 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 Atlantic Mortgage Lenders acknowledge the possible consequences of formal administrative proceedings;
 
WHEREAS, Atlantic Mortgage Lenders 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, Atlantic Mortgage Lenders 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 Atlantic Mortgage Lenders 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, Atlantic Mortgage Lenders 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 May 2006 into 2007 are no longer engaged in any mortgage-related activity with Atlantic Mortgage Lenders that would require such individuals to be so licensed;
 
AND WHEREAS, Atlantic Mortgage Lenders, 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 Atlantic Mortgage Lenders enter into this Settlement Agreement as follows:

1. No later than May 31, 2009, Atlantic Mortgage Lenders 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 Two Thousand Dollars ($2,000) as a civil penalty;
2. Upon entry of this Settlement Agreement, this matter will be resolved and the Commissioner will not take any future enforcement action against Atlantic Mortgage Lenders 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 Atlantic Mortgage Lenders based on the allegations contained herein if any representations made by Atlantic Mortgage Lenders in this Settlement Agreement are subsequently discovered to be untrue or if Atlantic Mortgage Lenders 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 Atlantic Mortgage Lenders 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 Atlantic Mortgage Lenders to enforce this Settlement Agreement if the Commissioner determines that Atlantic Mortgage 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 2nd day of June 2009.                 ________/s/_________
                                                     Howard F. Pitkin
                                                     Banking Commissioner



I, Allen McCollum, Jr., state that I 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.                             

                                            
                                    By:  ________/s/_________
                                           Allen McCollum, Jr.
                                           d/b/a Atlantic Mortgage Lenders


State of:  CT

County of:  New Haven


On this the 29th day of May 2009, before me, Erika Lawson, the undersigned officer, personally appeared Allen McCollum, Jr., known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument and acknowledged that he executed the same for the purposes therein contained.

In witness whereof I hereunto set my hand.


                                     ________/s/_________
                                     Notary Public
                                     Date Commission Expires:  November 30, 2010


Administrative Orders and Settlements