February 2, 2010
FIRST CLASS AND CERTIFIED MAIL
Ms. Mary Ann Naventi
4 Richconn Drive
New Milford, CT 06776
Re: Denial of Mortgage Loan Originator License
Dear Ms. Naventi:
On July 16, 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 Flaherty Funding Corporation, which is currently licensed as a mortgage correspondent lender under Part I of Chapter 668 of the Connecticut General Statutes, “Mortgage Lenders, Correspondent Lenders, Brokers and Loan Originators”.1 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 . . . character . . . so as to command the confidence of the community and to warrant a determination that the mortgage loan originator will operate honestly . . . 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] . . . .”. If I deny the license, I must notify the applicant and may notify the sponsor of the denial and the reasons for such denial.
You answered “yes” in response to Disclosure Questions 8(I)(1) and (6) of the Form MU4, which asked:
Has any State or federal regulatory agency or foreign financial regulatory authority ever:
(1) found you to have made a false statement or omission or been dishonest, unfair or unethical? . . .
(6) barred you from association with an entity regulated by such commissions, authority, agency, or officer, or from engaging in a financial services-related business?
Pursuant to the authority granted to me by Section 36a-17 of the Connecticut General Statutes, I have investigated your activities in the financial services-related industry, which revealed that you submitted a Letter of Acceptance, Waiver & Consent (No. 2006004215401) (“AWC”) to the National Association of Securities Dealers (“NASD”) for purposes of proposing a settlement of alleged rule violations, which AWC was accepted by the NASD on September 18, 2006.
Pursuant to the terms of the AWC as accepted by the NASD, you accepted and consented to the entry of the following finding:
From November 2002 to February 2003, Naventi falsely notarized the signatures of two persons on deeds and a mortgage document without having actually witnessed these signatures. As a result, Naventi violated NASD Conduct Rule 2110.
I have taken into account the fact that you did not admit or deny such finding by the terms of the AWC, that the finding was accepted and consented to solely for the purposes of the NASD proceeding and any other proceeding brought by or on behalf of the NASD or to which the NASD is a party, and was done so prior to a hearing and without an adjudication of any issue of law or fact.
However, the terms of the AWC also provide that the AWC is part of your permanent disciplinary record and may be considered in any future actions brought by the NASD or any other regulator against you. It further provides that you may not take any action, or make or permit to be made any public statement, including in regulatory filings or otherwise, denying, directly or indirectly, any finding in the AWC or create the impression that the AWC is without factual basis.
Under the terms of the AWC, you consented to the imposition of a bar from association with any NASD member and are subject to a statutory disqualification as that term is defined in Section 3(a)(39) of the Securities Exchange Act of 1934, as amended. As a result, you may not be associated with any NASD (now FINRA) member in any capacity, including clerical or ministerial functions during the period of the bar.
Based on the fact that you are presently barred from association in any capacity with any NASD (now FINRA) member under the terms of the AWC, and based further on the fact that you agree, through the terms of the AWC, that the conduct described in the AWC finding is not without factual basis, I am unable to find that you have demonstrated the requisite “ character . . . so as to command the confidence of the community and to warrant a determination that the mortgage loan originator will operate honestly . . . 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] . . . .”
For the reasons stated above, I am unable to issue you a mortgage loan originator license.
Very truly yours,
Howard F. Pitkin
HFP/SLV/td Banking Commissioner
Certified Mail No. 7009 1680 0001 0071 8659
cc: Flaherty Funding Corporation d/b/a Compass Financial
Flaherty Funding Corporation d/b/a Mortgage Force
1Flaherty Funding Corporation does business in Connecticut as Compass Financial and Mortgage Force.