DOB: CornerStone Bancor Mortgage Corp. d/b/a CornerStone Bancor, Order Revoking Mortgage Lender License and Cease and Desist

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IN THE MATTER OF:

CORNERSTONE BANCOR
MORTGAGE CORP.
d/b/a CORNERSTONE BANCOR

    ("Respondent")

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ORDER REVOKING MORTGAGE
LENDER LICENSE

AND

ORDER TO CEASE AND DESIST


I.  PRELIMINARY STATEMENT

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, the Commissioner, through the Consumer Credit Division of the Department of Banking (“Department”), conducted an investigation of the activities of Respondent, pursuant to the authority granted by Section 36a-17 of the Connecticut General Statutes, to determine if Respondent had violated, was violating or was about to violate the provisions of the Connecticut General Statutes within the jurisdiction of the Commissioner;
 
WHEREAS, on December 22, 2009, the Commissioner, acting pursuant to Section 36a-52(b) of the Connecticut General Statutes, Sections 36a-494(a)(1) and 36a-494(a)(1)(C) of the Connecticut General Statutes, as amended by Public Act 09-209, subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, 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, issued a Notice of Automatic Suspension, Temporary Order to Cease and Desist, Notice of Intent to Revoke Mortgage Lender License, Notice of Intent to Issue Order to Cease and Desist and Notice of Right to Hearing (collectively “Notice”) against Respondent, which Notice is incorporated herein by reference;
 
WHEREAS, on December 22, 2009, the Notice was sent by registered mail, return receipt requested, to Respondent (Registered Mail Nos. RB028036787US and RB028036915US);
 
WHEREAS, the Notice provided Respondent with the opportunity for a hearing and stated that if a hearing was not requested within 14 days of its receipt, the Commissioner would issue an order revoking Respondent’s license to engage in the business of a mortgage lender in Connecticut from 208 Route 109, Suite 100, Farmingdale, New York, and issue an order that Respondent cease and desist from violating Section 36a-492 of the Connecticut General Statutes, as amended by Public Act 09-209;
 
WHEREAS, on December 26, 2009, the Notice mailed to Respondent, registered mail no. RB028036915US, was received and no request for a hearing has been received by the Commissioner;
 
WHEREAS, on January 19, 2010, the Notice mailed to Respondent, registered mail no. RB028036787US, was returned to the Department marked “Return to Sender – Unclaimed”, and no request for hearing has been received by the Commissioner;
 
WHEREAS, the Commissioner alleged in the Notice, with respect to the activity described therein, that Respondent’s failure to maintain a surety bond is a violation of Section 36a-492 of the Connecticut General Statutes, as amended, which, pursuant to Sections 36a-494(a)(1) and 36a-494(a)(1)(C) of the Connecticut General Statutes, as amended, and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, constitutes sufficient grounds to revoke Respondent’s license to engage in the business of a mortgage lender in Connecticut from 208 Route 109, Suite 100, Farmingdale, New York, and forms a basis to issue an order to cease and desist pursuant to Section 36a-494(b) of the Connecticut General Statutes, as amended, and Section 36a-52(a) of the Connecticut General Statutes;
 
WHEREAS, Section 36a-51(b) of the Connecticut General Statutes provides, in pertinent part, that “[i]f the licensee does not request a hearing within the time specified in the notice . . . , the commissioner shall . . . revoke . . . the license.  No such license shall be . . . revoked except in accordance with the provisions of chapter 54”;
 
WHEREAS, Section 36a-52(a) of the Connecticut General Statutes provides, in pertinent part, that “[i]f the person does not request a hearing within the time specified in the notice . . . , the commissioner shall issue an order to cease and desist against the person.  No such order shall be issued except in accordance with the provisions of chapter 54”;
 
AND WHEREAS, Section 36a-1-31(a) of the Regulations of Connecticut State Agencies provides, in pertinent part, that “[w]hen a party fails to request a hearing within the time specified in the notice, the allegations against the party may be deemed admitted.  Without further proceedings or notice to the party, the commissioner shall issue a final decision in accordance with section 4-180 of the Connecticut General Statutes and section 36a-1-52 of the Regulations of Connecticut State Agencies”.


II.  FINDINGS OF FACT AND CONCLUSIONS OF LAW

1.
The Commissioner finds that the matters asserted, as set forth in paragraphs 1 through 5, inclusive, of Section II of the Notice shall constitute findings of fact within the meaning of Section 4-180(c) of the Connecticut General Statutes, and that the conclusions as set forth in Section III of the Notice shall constitute conclusions of law within the meaning of Section 4-180(c) of the Connecticut General Statutes and Section 36a-1-52 of the Regulations of Connecticut State Agencies.
2.
The Commissioner finds that Respondent has engaged in acts or conduct which, pursuant to Sections 36a-494(a)(1) and 36a-494(a)(1)(C) of the Connecticut General Statutes, as amended, and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, constitutes sufficient grounds to revoke Respondent’s license to engage in the business of a mortgage lender in Connecticut from 208 Route 109, Suite 100, Farmingdale, New York.
3.
The Commissioner finds that Respondent has engaged in acts or conduct which, pursuant to Section 36a-494(b) of the Connecticut General Statutes, as amended, and Section 36a-52(a) of the Connecticut General Statutes, forms the basis to issue an order to cease and desist against Respondent.
4.
The Commissioner finds that the Notice was given in compliance with subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, and Sections 36a-52(a), 4-177 and 4-182(c) of the Connecticut General Statutes.
 

III.  ORDER

Having read the record, I HEREBY ORDER, pursuant to Sections 36a-494(a)(1) and 36a-494(a)(1)(C) of the Connecticut General Statutes, as amended, subsections (a) and (b) of Section 36a-51 of the Connecticut General Statues, Section 36a-494(b) of the Connecticut General Statutes, as amended, and Section 36a-52(a) of the Connecticut General Statutes, that:

1.
The license of CornerStone Bancor Mortgage Corp. d/b/a CornerStone Bancor to engage in the business of a mortgage lender in Connecticut from 208 Route 109, Suite 100, Farmingdale, New York, be and is hereby REVOKED;
2.
CornerStone Bancor Mortgage Corp. d/b/a CornerStone Bancor CEASE AND DESIST from violating Section 36a-492 of the Connecticut General Statutes, as amended; and
3.
This Order shall become effective when mailed.
 

Dated at Hartford, Connecticut
this 29th day of January 2010.                   ________/s/_________
                                                            Howard F. Pitkin
                                                            Banking Commissioner



This order was mailed by certified mail,
return receipt requested, to Respondent
on January 29, 2010.


CornerStone Bancor Mortgage Corp.    Certified Mail No. 70031680000085235901
d/b/a CornerStone Bancor
Attention:  Angela Sutphen
208 Route 109, Suite 100
Farmingdale, New York 11735

CornerStone Bancor Mortgage Corp.    Certified Mail No. 70031680000085236014
d/b/a CornerStone Bancor
Attention:  Angela Sutphen
85 Shinnecock Avenue
Massapequa, New York 11758


Administrative Orders and Settlements