August 25, 2009
FIRST CLASS AND CERTIFIED MAIL
Mr. John Browdy
601 Sandstone Drive
South Windsor, CT 06074
Re: Denial of Mortgage Loan Originator License
Dear Mr. Browdy:
On March 24, 2009, you filed a Form MU4, “Uniform Individual Mortgage License/Registration & Consent Form” (“Form MU4”), with the Nationwide Mortgage Licensing System seeking to obtain a mortgage loan originator license in Connecticut. Your sponsoring company is Nations Funding Source, Inc., which is currently licensed as a mortgage lender under Part I of Chapter 668 of the Connecticut General Statutes, “Mortgage Lenders, Correspondent Lenders, Brokers and Loan Originators”. Pursuant to Section 36a-489 of the Connecticut General Statutes, as amended by Public Acts 09-207, 09-208 and 09-209, I hereby deny the license for the reasons set forth below.
Section 36a-489(b)(1) of the Connecticut General Statutes, as amended, prohibits me from issuing an initial license for a mortgage loan originator unless I find at a minimum, among other things, that the applicant has “(B) notwithstanding the provisions of section 46a-80, . . . not been convicted of, or pled guilty or nolo contendere to, a felony in a domestic, foreign or military court during the seven-year period preceding the date of the application for licensing or at any time preceding such date of application if such felony involved an act of fraud, dishonesty, a breach of trust, or money laundering, provided any pardon of a conviction shall not be a conviction for purposes of this subdivision; . . . and (F) not made a material misstatement in the application.” If I deny the license, I must notify the applicant and may notify the sponsor of the denial and the reasons for such denial.
In response to Question 8(D)(1) of the Form MU4, which asked “[h]ave you ever: (1) been convicted of or pled guilty or nolo contendere (‘no contest’) in a domestic, foreign, or military court to any felony?”, you answered “no.” In response to Question 8(D)(2) of the Form MU4, which asked, “[h]ave you ever: (2) been charged with a felony?”, you answered, “no.” Pursuant to the authority granted to me by Section 36a-17 of the Connecticut General Statutes, I have reviewed your criminal history record in Connecticut, which disclosed that on December 18, 1990, you were convicted of one felony count of credit card theft. Because credit card theft involves an act of dishonesty, I am prohibited by law from issuing you a mortgage loan originator license.
In addition to the felony conviction for credit card theft mentioned above, a review of your criminal history in Connecticut also revealed two felony convictions, one in 1987 and one in 1991, relating to possession of narcotics, which were not disclosed. Based on the felony convictions described above, I find that you made material misstatements in your application with respect to such convictions, which further prohibits me from issuing you a mortgage loan originator’s license.
Similarly, in response to Question 8(F)(1) of the Form MU4, which asked, “[h]ave you ever been convicted of or pled guilty or nolo contendere (‘no contest’) in a domestic, foreign, or military court to a misdemeanor involving: financial services or a financial services-related business; any fraud, false statements, or omissions; any theft or wrongful taking of property; bribery; perjury; forgery; counterfeiting; extortion; or a conspiracy to commit any of these offenses?”, you answered, “no.” (Emphasis added.) A review of your criminal history reveals that between the dates of 1982 and 1993 you were convicted of various classes of misdemeanor larcenies on 22 occasions. Accordingly, I find that you also made material misstatements in your application with respect to such misdemeanor convictions, which further prohibit me from issuing you a mortgage loan originator license.
For the reasons stated above, I am unable to issue you a mortgage loan originator license.
Very truly yours,
Howard F. Pitkin
Certified Mail No. 7007 1490 0004 3509 7246
cc: Nations Funding Source, Inc.