DOB: Progressive Home Loans, LLC, Settlement Agreement

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IN THE MATTER OF:

PROGRESSIVE HOME LOANS, LLC

    ("Progressive Home Loans")

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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, Progressive Home Loans is a limited liability company 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 April 2009, 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 Progressive Home Loans 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 Progressive Home Loans employed or retained, during the period of August 20, 2007 through December 31, 2007, one (1) individual as an originator without registering such originator, 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 allegation would support initiation of enforcement proceedings against Progressive Home Loans, including proceedings to revoke Progressive Home Loan’s license pursuant to Sections 36a-494(a) and 36a-51 of the Connecticut General Statutes, issue a cease and desist order against Progressive Home Loans 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 Progressive Home Loans 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 Progressive Home Loans acknowledge the possible consequences of formal administrative proceedings;
 
WHEREAS, Progressive Home Loans 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, Progressive Home Loans 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 Progressive Home Loans 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, Progressive Home Loans herein represents to the Commissioner that the individual alleged to be an unregistered originator in violation of Sections 36a-486(b) and 36a-511(b) of the Connecticut General Statutes during the period of August 20, 2007 through December 31, 2007 is no longer engaged in any mortgage-related activity with Progressive Home Loans that would require such individual to be so licensed;
 
AND WHEREAS, Progressive Home Loans, 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 Progressive Home Loans enter into this Settlement Agreement as follows:

1. No later than the date of execution of this Settlement Agreement by Progressive Home Loans, Progressive Home Loans 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. Upon entry of this Settlement Agreement, this matter will be resolved and the Commissioner will not take any future enforcement action against Progressive Home Loans 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 Progressive Home Loans based on the allegations contained herein if any representations made by Progressive Home Loans in this Settlement Agreement are subsequently discovered to be untrue or if Progressive Home Loans 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 Progressive Home Loans 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 Progressive Home Loans to enforce this Settlement Agreement if the Commissioner determines that Progressive Home Loans 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 19th day of June 2009.        

________/s/_________
Howard F. Pitkin
Banking Commissioner


I, Brian D. Jones, state on behalf of Progressive Home Loans, LLC, 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 Progressive Home Loans, LLC; that Progressive Home Loans, LLC agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that Progressive Home Loans, LLC voluntarily agrees to enter into this Settlement Agreement, expressly waiving any right to a hearing on the matters described herein.

                                          By:  ________/s/_________
                                                 Name:  Brian D. Jones
                                                 Title:  Managing Member
                                                 Progressive Home Loans, LLC

State of:  Connecticut

County of:  New Haven

On this the 17th day of June 2009, before me, Bernice L. Bakstis, the undersigned officer, personally appeared Brian D. Jones who acknowledged himself to be the Managing Member of Progressive Home Loans, LLC, a member managed limited liability company, and that he, as such Managing 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 Managing Member.

In witness whereof I hereunto set my hand.

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


Administrative Orders and Settlements