DOB: Village Mortgage Company d/b/a Mortgage Fax, Settlement Agreement

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IN THE MATTER OF:

VILLAGE MORTGAGE COMPANY
d/b/a MORTGAGE FAX

    ("Village 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, Mortgage Giver is a corporation currently licensed by the Commissioner as a mortgage lender under Part I of Chapter 668, Sections 36a-485 et seq. of the Connecticut General Statutes;
 
WHEREAS, in April 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 Village 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 Village Mortgage employed or retained, during the period of October 1, 2006 through December 16, 2008, at least 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, as a result of such examination, the Commissioner additionally alleges that Village Mortgage engaged in the business of making mortgage loans at Lakeville, Connecticut, and Bristol, Connecticut, locations, during the period of January 7, 2005 to the present, without having first obtained mortgage lender licenses for such locations in violation of Sections 36a-490(a) and 36a-515(a) of the then applicable Connecticut General Statutes;
 
WHEREAS, the Commissioner believes that the unregistered originator and unlicensed office allegations would support initiation of enforcement proceedings against Village Mortgage, including proceedings to revoke Village Mortgage’s license pursuant to Sections 36a-494(a) and 36a-51 of the Connecticut General Statutes, issue a cease and desist order against Village 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 Village 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 Village Mortgage acknowledge the possible consequences of formal administrative proceedings;
 
WHEREAS, Village 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, Village 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 Village Mortgage requires licensure from the Commissioner under Part I of Chapter 668, including but not limited to, licensure as an originator under Section 36a-486(b) of the Connecticut General Statutes;
 
WHEREAS, Village Mortgage herein represents to the Commissioner that one of the two individuals alleged to be unregistered originators in violation of Sections 36a-486(b) and 36a-511(b) of the Connecticut General Statutes, is currently licensed as a mortgage loan originator and that the other individual is no longer engaged in any mortgage-related activity with Village Mortgage that would require such individual to be licensed;
 
WHEREAS, Village Mortgage herein represents that it ceased engaging in any mortgage lending activity at the Lakeville, Connecticut, and Bristol, Connecticut, locations, and that Village Mortgage has reviewed and updated its internal policies, procedures and controls to ensure that any and all locations where mortgage lending activity will be conducted by Village Mortgage will be duly licensed with the Commissioner prior to engaging in such activity; 
 
WHEREAS, in connection with this settlement, Village Mortgage was provided the option to pay a civil penalty in the amount of Fourteen Thousand Dollars ($14,000) 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, Village Mortgage was provided an alternative option to make a voluntary contribution in the amount of Fourteen Thousand Dollars ($14,000) to the State Regulatory Registry LLC (“SRR”), a wholly-owned subsidiary of CSBS, to support NMLS&R;
 
WHEREAS, Village Mortgage elected to make a voluntary contribution to SRR in lieu of a civil penalty;
 
AND WHEREAS, Village 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 Village Mortgage enter into this Settlement Agreement as follows:

1.
Village Mortgage shall make three voluntary contributions by cashier’s check, certified check or money order in the total amount of Fourteen Thousand Dollars ($14,000) to SRR to support NMLS&R in accordance with the following schedule:

a.  Four Thousand Dollars ($4,000) no later that the date this Settlement Agreement is executed by Village Mortgage; an additional
 
b.  Five Thousand Dollars ($5,000) no later than ninety (90) days following Village Mortgage’s initial contribution; and an additional
 
c.  Five Thousand Dollars ($5,000) no later than one hundred eighty (180) days following Village Mortgage’s initial contribution.

2. Upon entry of this Settlement Agreement, this matter will be resolved and the Commissioner will not take any future enforcement action against Village 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 Village Mortgage based on the allegations contained herein if any representations made by Village Mortgage in this Settlement Agreement are subsequently discovered to be untrue or if Village 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 Village Mortgage to apply for or obtain licenses or renewal licenses under Part I of Chapter 668 of the Connecticut General Statutes, and to apply for or obtain licensure of its mortgage loan originators from the Commissioner; and
4. Notwithstanding paragraph 2 herein, execution of this Settlement Agreement is without prejudice to the right of the Commissioner to take enforcement action against Village Mortgage to enforce this Settlement Agreement if the Commissioner determines that Village 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 16th day of July 2009.        

________/s/_________
Howard F. Pitkin
Banking Commissioner


I, Laurel A. Caliendo, state on behalf of Village Mortgage Company d/b/a Mortgage Fax, 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 Village Mortgage Company d/b/a Mortgage Fax; that Village Mortgage Company d/b/a Mortgage Fax agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that Village Mortgage Company d/b/a Mortgage Fax voluntarily agrees to enter into this Settlement Agreement, expressly waiving any right to a hearing on the matters described herein.

                                          By:  ________/s/_________
                                                 Name:  Laurel A. Caliendo
                                                 Title:  President
                                                 Village Mortgage Company
                                                 d/b/a Mortgage Fax

State of:  Connecticut

County of:  Litchfield


On this the 15th day of July 2009, before me, Joseph G. Veneziano, the undersigned officer, personally appeared Laurel A. Caliendo who acknowledged herself to be the President of Village Mortgage Company d/b/a Mortgage Fax, a corporation, and that she, as such President being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by herself as President.

In witness whereof I hereunto set my hand.

                                                 ________/s/_________
                                                 Notary Public
                                                 Date Commission Expires:  10/31/2012


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