August 25, 2009
FIRST CLASS AND REGISTERED MAIL
Ms. Sherri Kalil
14 Diana Street
Worcester, MA 01605
Re: Denial and Rejection of Mortgage Loan Originator License
Dear Ms. Kalil:
On September 19, 2008, 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 1-800-East-West Mortgage Company, 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 “(C) demonstrated financial responsibility, character and general fitness so as to command the confidence of the community and to warrant a determination that the mortgage loan originator will operate honestly, fairly and efficiently within the purpose of sections 36a-485 to 36a-498c, inclusive, . . . sections 36a-534a and 36a-534b, . . . and sections 9 and 19 to 21, inclusive, of . . . [Public Act 09-209]; 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(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.) Pursuant to the authority granted to me by Section 36a-17 of the Connecticut General Statutes, I have reviewed your criminal history record, which disclosed that on January 5, 2005, you pled guilty in Palm Beach County, Florida, to the misdemeanor charge of retail theft in violation of Section 812.015 of the Florida Statutes.
Section 46a-80 of the Connecticut General Statutes provides, in pertinent part, that:
(a) Except as provided in subsection (b) of this section and subsection (b) of section 46a-81, and notwithstanding any other provisions of law to the contrary, a person shall not . . . be disqualified to practice, pursue or engage in any occupation, trade, vocation, profession or business for which a license . . . is required to be issued by the state of Connecticut or any of its agencies solely because of a prior conviction of a crime.
(b) A person may be denied . . . a license . . . to pursue, practice or engage in an occupation, trade, vocation, profession or business by reason of the prior conviction of a crime if after considering (1) the nature of the crime and its relationship to the job for which the person has applied; (2) information pertaining to the degree of rehabilitation of the convicted person; and (3) the time elapsed since the conviction or release, the state, or any of its agencies determines that the applicant is not suitable for . . . the specific occupation, trade, vocation, profession or business for which the license . . . is sought.
(c) If a conviction of a crime is used as a basis for rejection of an applicant, such rejection shall be in writing and specifically state the evidence presented and reasons for rejection. A copy of such rejection shall be sent by registered mail to the applicant.
I have considered the criteria contained in Section 46a-80(b) of the Connecticut General Statutes that must be considered prior to rejecting a license based solely upon your misdemeanor conviction. Based upon the nature of the crime mentioned above and its relationship to the license being sought, and the time elapsed since the conviction, I am unable to find that you have “demonstrated financial responsibility, character and general fitness so as to command the confidence of the community and to warrant a determination that the mortgage loan originator will operate honestly, fairly and efficiently within the purpose of sections 36a-485 to 36a-498c, inclusive, . . . sections 36a-534a and 36a-534b, . . . and sections 9 and 19 to 21 of . . . [Public Act 09-209].”
I am aware that, in response to our subsequent inquiries, you updated your mortgage loan application to reflect a “yes” response to the Question 8(F)(1) of the Form MU4, and I am aware of your claim that you misunderstood the question. However, I am unable to find this claim convincing, and accordingly, also find that you made a material misstatement in your application which further prohibits 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
Registered Mail No. RB027869064US
cc: 1-800-East-West Mortgage Company