August 25, 2009
FIRST CLASS AND CERTIFIED MAIL
Mr. Douglas Molander
1 Springfield St., #307
Chicopee, MA 01013
Re: Denial of Mortgage Loan Originator License
Dear Mr. Molander:
On May 7, 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 Top Flite Financial, 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 “yes.” 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, “yes.” 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 in 1992 you pled guilty to one count of Larceny 1 (a class B felony). In your explanation of this conviction in connection with your application, you disclosed that the conviction was “for the misappropriation of funds in bank accounts of I [sic] had fiduciary control.” Because this conviction involves an act of dishonesty and breach of trust, I am prohibited by law from issuing you a mortgage loan originator license.
In addition, in response to Question 8(I)(5) of the Form MU4, which asked, “[h]as any State or federal regulatory agency or foreign financial regulatory authority ever: . . . (5) denied, suspended, or revoked your registration or license, disciplined you, or otherwise by order prevented you from associating with a financial services-related business or restricted your activities?”, you answered, “no.” Pursuant to the authority granted to me by Section 36a-17 of the Connecticut General Statutes, I have investigated your activities in the Commonwealth of Massachusetts and in Connecticut, which revealed that the Commonwealth of Massachusetts denied your application for a loan originator license on February 2, 2009. In addition, in March 2003, the former Commissioner of this Department entered into a Consent Order with American Family Mortgage Corporation which specifically prohibited American Family Mortgage Corporation from employing you for a period of three years from the date of issuance of the Consent Order “in any position or manner that would involve . . . [you] engaging in any activity with or involving Connecticut consumers for which . . . [American Family Mortgage Corporation] is required to be licensed pursuant to Chapter 668 of the Connecticut General Statutes.” Based on these facts, I also find that you made material misstatements in your application 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 7192
cc: Top Flite Financial, Inc.