DOB: Trademark Financial Group, LLC, Settlement Agreement

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IN THE MATTER OF:

TRADEMARK FINANCIAL
GROUP, LLC

    ("Trademark Financial")

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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”, and Sections 9 and 19 to 21, inclusive, of Public Act 09-209;
 
WHEREAS, Trademark Financial is a Connecticut limited liability company that is currently licensed as a mortgage broker under Part I of Chapter 668, Sections 36a-485 et seq. of the Connecticut General Statutes;
 
WHEREAS, in June 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 Trademark Financial 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 Trademark Financial employed or retained, during the period of May 2007 through April 2009, two (2) individuals as originators or mortgage loan originators without registering or licensing them, in violation of Sections 36a-486(b) and 36a-511(b) of the then applicable Connecticut General Statutes;
 
WHEREAS, the Commissioner believes that such allegations would support initiation of enforcement proceedings against Trademark Financial, including proceedings to revoke Trademark Financial’s license pursuant to Section 36a-494(a) of the Connecticut General Statutes, as amended by Public Act 09-209, and Section 36a-51 of the Connecticut General Statutes, issue a cease and desist order against Trademark Financial pursuant to Section 36a-494(b) of the Connecticut General Statutes, as amended by Public Act 09-209, and Section 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 Trademark Financial pursuant to Section 36a-494(b) of the Connecticut General Statutes, as amended, and Section 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 Trademark Financial acknowledge the possible consequences of formal administrative proceedings;
 
WHEREAS, Trademark Financial 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, Trademark Financial herein represents to the Commissioner that one of the two individuals alleged to be unregistered or unlicensed originators or mortgage loan originators in violation of Sections 36a-486(b) and 36a-511(b) of the Connecticut General Statutes, during the period of May 2007 through April 2009, is currently licensed as a mortgage loan originator under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes and that the other such individual is no longer engaged in any mortgage-related activity with Trademark Financial that would require such individual to be registered or licensed under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
 
WHEREAS, Trademark Financial 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 Trademark Financial 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 mortgage loan originators under Section 36a-489 of the Connecticut General Statutes, as amended;
 
WHEREAS, in connection with this settlement, Trademark Financial was provided the option to pay a civil penalty in the amount of Two Thousand Dollars ($2,000) 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, Trademark Financial was provided an alternative option to make a voluntary contribution in the amount of Two Thousand Dollars ($2,000) to the State Regulatory Registry LLC (“SRR”), a wholly-owned subsidiary of the CSBS, to support the NMLS&R;
 
WHEREAS, Trademark Financial elected to make a voluntary contribution to SRR in lieu of a civil penalty;
 
AND WHEREAS, Trademark Financial, 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 Trademark Financial enter into this Settlement Agreement as follows:

1. No later than the date this Settlement Agreement is executed by Trademark Financial, Trademark Financial shall make a voluntary contribution by cashier’s check, certified check or money order in the amount of Two Thousand Dollars ($2,000) to SRR to support NMLS&R;
2. Upon entry of this Settlement Agreement, this matter will be resolved and the Commissioner will not take any future enforcement action against Trademark Financial 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 Trademark Financial based on the allegations contained herein if any representations made by Trademark Financial in this Settlement Agreement are subsequently discovered to be untrue or if Trademark Financial 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 Trademark Financial 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 Trademark Financial to enforce this Settlement Agreement if the Commissioner determines that Trademark Financial 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 22nd day of October 2009.        

________/s/_________
Howard F. Pitkin
Banking Commissioner


I, Matthew Albert, state on behalf of Trademark Financial Group, 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 Trademark Financial Group, LLC; that Trademark Financial Group, LLC agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that Trademark Financial Group, LLC voluntarily agrees to enter into this Settlement Agreement, expressly waiving any right to a hearing on the matters described herein.

                                          By:  ________/s/_________
                                                 Name:  Matthew Albert
                                                 Title:  Member
                                                 Trademark Financial Group, LLC

State of:  Connecticut

County of:  New Haven

On this the 20 day of October 2009, before me, Maryanne Little, the undersigned officer, personally appeared Matthew Albert who acknowledged himself to be the Member of Trademark Financial Group, LLC, a limited liability company that he, as such 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 Member.

In witness whereof I hereunto set my hand.

                                        ________/s/_________
                                        Notary Public
                                        Date Commission Expires:  10/31/2010


Administrative Orders and Settlements