DOB: NorthPoint Mortgage, Inc.-SA

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IN THE MATTER OF:

NORTHPOINT MORTGAGE, INC.

    ("NorthPoint Mortgage")

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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”;
 
WHEREAS, NorthPoint Mortgage is a Massachusetts corporation that is licensed as a mortgage correspondent lender under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
 
WHEREAS, on December 12, 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 NorthPoint 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 NorthPoint Mortgage employed or retained, during the period of August 4, 2008 through April 10, 2009, four (4) individuals as mortgage loan originators without licensing them, in violation of Section 36a-486(b) of the Connecticut General Statutes;
 
WHEREAS, the Commissioner believes that such allegations would support initiation of enforcement proceedings against NorthPoint Mortgage, including proceedings to revoke NorthPoint Mortgage’s license pursuant to Section 36a-494(a) and subsections (a) and (b) of Section 36a-51 of the 2010 Supplement to the General Statutes, issue a cease and desist order against NorthPoint Mortgage pursuant to Section 36a-494(b) of the 2010 Supplement to the General Statutes 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 NorthPoint Mortgage pursuant to Section 36a-494(b) of the 2010 Supplement to the General Statutes 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 NorthPoint Mortgage acknowledge the possible consequences of formal administrative proceedings;
 
WHEREAS, NorthPoint Mortgage 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, NorthPoint Mortgage herein represents to the Commissioner that two (2) of the individuals alleged to be unlicensed mortgage loan originators in violation of Section 36a-486(b) of the Connecticut General Statutes, during the period of August 4, 2008 through April 10, 2009, are currently licensed as mortgage loan originators under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes, and that the other two (2) individuals are no longer engaged in any mortgage-related activity with NorthPoint Mortgage that would prohibit NorthPoint Mortgage from engaging the services of such individuals without licensure as mortgage loan originators under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
 
WHEREAS, NorthPoint Mortgage 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 NorthPoint Mortgage requires licensure from the Commissioner under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
 
AND WHEREAS, NorthPoint 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 NorthPoint Mortgage enter into this Settlement Agreement as follows:

1.
No later than the date this Settlement Agreement is executed by NorthPoint Mortgage, NorthPoint Mortgage 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 Four Thousand Dollars ($4,000) 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 NorthPoint 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 NorthPoint Mortgage based on the allegations contained herein if any representations made by NorthPoint Mortgage in this Settlement Agreement are subsequently discovered to be untrue or if NorthPoint Mortgage 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 NorthPoint 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 for its mortgage loan originators to apply for or obtain licensure 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 NorthPoint Mortgage to enforce this Settlement Agreement if the Commissioner determines that NorthPoint 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 30th day of June 2010.                ________/s/_________
                                                     Howard F. Pitkin
                                                     Banking Commissioner



I, Timothy S. Dinges, state on behalf of NorthPoint Mortgage, Inc., 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 NorthPoint Mortgage, Inc.; that NorthPoint Mortgage, Inc., agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that NorthPoint Mortgage, Inc., voluntarily agrees to enter into this Settlement Agreement, expressly waiving any right to a hearing on the matters described herein.                                         

                                            By:  ________/s/_________
                                                   Name:  Timothy S. Dinges
                                                   Title:  Secretary/Treasurer
                                                   NorthPoint Mortgage, Inc.


State of:  New Hamshire

County of:  Hillsborough


On this the 18 day of June 2010, before me, Amanda Donovan, the undersigned officer, personally appeared Timothy S. Dinges who acknowledged himself to be the Secretary/Treasurer of NorthPoint Mortgage, Inc., a corporation, that he as such Secretary/Treasurer, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself as Timothy Dinges.

In witness whereof I hereunto set my hand.


                                         ________/s/_________
                                         Notary Public:  
                                         Date Commission Expires:  8/9/11


Administrative Orders and Settlements