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IN THE MATTER OF:
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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, Northeast Mortgage is a Nevada corporation that was licensed as a mortgage correspondent lender in Connecticut under Part I of Chapter 668, Sections 36a-485 et seq. of the Connecticut General Statutes;
WHEREAS, on January 7, 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 Northeast 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 Northeast Mortgage employed or retained, during the period of March 2007 through November 2008, eight (8) 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, as a result of such examination, the Commissioner also alleges that Northeast Mortgage paid, during the period October 2007 through February 2009, referral fees to credit unions for five (5) loans and failed to properly document such fees on the HUD-1 Settlement Statements, in violation of 24 CFR 3500.8(b), 24 CFR 3500.14(c) and 24 CFR 3500.14(g)(III), which are regulations applicable to Northeast Mortgage’s business;
WHEREAS, the Commissioner believes that such allegations would support initiation of enforcement proceedings against Northeast Mortgage, including proceedings to revoke Northeast Mortgage’s license pursuant to Section 36a-494(a) of the Connecticut General Statutes, as amended by Public Act 09-209, and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, issue a cease and desist order against Northeast Mortgage 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 Northeast Mortgage 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 Northeast Mortgage acknowledge the possible consequences of formal administrative proceedings;
WHEREAS, Northeast Mortgage agrees to voluntarily enter into this Settlement Agreement without admitting or denying that any allegations set forth herein, and solely for the purposes of obviating the need for formal administrative proceedings concerning the allegations described above;
WHEREAS, on October 6, 2009, Northeast Mortgage surrendered its mortgage correspondent lender license in Connecticut;
AND WHEREAS, Northeast 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 Northeast Mortgage enter into this Settlement Agreement as follows:
||No later than the date this Settlement Agreement is executed by Northeast Mortgage, Northeast Mortgage shall remit to the Department of Banking, by cashier’s or certified check or money order made payable to “Treasurer, State of Connecticut”, the sum of Twenty-Five Thousand Dollars ($25,000) as a civil penalty;|
||Upon entry of this Settlement Agreement, this matter will be resolved and the Commissioner will not take any future enforcement action against Northeast 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 Northeast Mortgage based on the allegations contained herein if any representations made by Northeast Mortgage in this Settlement Agreement are subsequently discovered to be untrue or if Northeast Mortgage is not fully complying with any term or condition stated herein;|
||Nothing in the entry of this Settlement Agreement shall adversely affect the ability of Northeast Mortgage 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;|
||Notwithstanding paragraph 2 herein, execution of this Settlement Agreement is without prejudice to the right of the Commissioner to take enforcement action against Northeast Mortgage to enforce this Settlement Agreement if the Commissioner determines that Northeast 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 20th day of November 2009. ________/s/_________
Howard F. Pitkin
I, Brian P. Rogerson, state on behalf of Northeast Mortgage Corporation, 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 Northeast Mortgage Corporation; that Northeast Mortgage Corporation agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that Northeast Mortgage Corporation voluntarily agrees to enter into this Settlement Agreement, expressly waiving any right to a hearing on the matters described herein.
Name: Brian P. Rogerson
Northeast Mortgage Corporation
State of: Arizona
County of: Maricopa
On this the 16 day of November 2009, before me, Cheryl L. Turk, the undersigned officer, personally appeared Brian P. Rogerson who acknowledged himself to be the President of Northeast Mortgage Corporation, a corporation that he, as such President, 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 President.
In witness whereof I hereunto set my hand.
Date Commission Expires: 8-5-2011
Administrative Orders and Settlements