DOB: Cambridge Home Capital, LLC, Settlement Agreement

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IN THE MATTER OF:

CAMBRIDGE HOME CAPITAL, LLC

    ("Cambridge Home Capital")

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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, Cambridge Home Capital is a limited liability company currently licensed as a mortgage lender under Part I of Chapter 668, Sections 36a-485 et seq. of the Connecticut General Statutes;
 
WHEREAS, on February 17, 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 Cambridge Home Capital 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 Cambridge Home Capital employed or retained, during the period of April 10, 2007 through December 18, 2007, three (3) individuals as originators without registering 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 Cambridge Home Capital, including proceedings to revoke Cambridge Home Capital’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 Cambridge Home Capital 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 Cambridge Home Capital 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 Cambridge Home Capital acknowledge the possible consequences of formal administrative proceedings;
 
WHEREAS, Cambridge Home Capital 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, Cambridge Home Capital herein represents to the Commissioner that the three individuals alleged to be unregistered originators in violation of Sections 36a-486(b) and 36a-511(b) of the then applicable Connecticut General Statutes, during the period of April 10, 2007 through December 18, 2007, are either currently licensed as mortgage loan originators with Cambridge Home Capital, or are no longer engaged in any mortgage-related activity with Cambridge Home Capital that would require such individuals to be licensed under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes; 
 
WHEREAS, Cambridge Home Capital 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 Cambridge Home Capital requires licensure from the Commissioner under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
 
AND WHEREAS, Cambridge Home Capital, 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 Cambridge Home Capital enter into this Settlement Agreement as follows:

1. No later than the date this Settlement Agreement is executed by Cambridge Home Capital, Cambridge Home Capital shall remit to the Department of Banking, by cashier’s check, certified check or money order made payable to “Treasurer, State of Connecticut”, the sum of Three Thousand Dollars ($3,000) as a civil penalty;
2. Upon entry of this Settlement Agreement, this matter will be resolved and the Commissioner will not take any future enforcement action against Cambridge Home Capital 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 Cambridge Home Capital based on the allegations contained herein if any representations made by Cambridge Home Capital in this Settlement Agreement are subsequently discovered to be untrue or if Cambridge Home Capital 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 Cambridge Home Capital 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; and
4. Notwithstanding paragraph 2 herein, execution of this Settlement Agreement is without prejudice to the right of the Commissioner to take enforcement action against Cambridge Home Capital to enforce this Settlement Agreement if the Commissioner determines that Cambridge Home Capital 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 5th day of February 2010.            ________/s/_________
                                                     Howard F. Pitkin
                                                     Banking Commissioner



I, Craig J. Hyman, state on behalf of Cambridge Home Capital, 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 Cambridge Home Capital, LLC; that Cambridge Home Capital, LLC, agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that Cambridge Home Capital, LLC, voluntarily agrees to enter into this Settlement Agreement, expressly waiving any right to a hearing on the matters described herein.                             

                                            
                                    By:  ________/s/_________
                                           Name:  Craig J. Hyman
                                           Title:  Chief Executive Officer


State of:  New York

County of:  Nassau


On this the 29th day of January 2010, before me, Kenneth H. Wurman, the undersigned officer, personally appeared Craig J. Hyman who acknowledged himself to be the CEO of Cambridge Home Capital, LLC, a member managed/manager managed limited liability company, that he as such CEO, 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 CEO.

In witness whereof I hereunto set my hand.


                                     ________/s/_________
                                     Notary Public
                                     Date Commission Expires:  February 28, 2011


Administrative Orders and Settlements