DOB: RMG Mortgage Group, LLC-SA

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IN THE MATTER OF:

RMG MORTGAGE GROUP, LLC

    ("RMG 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 of the Connecticut General Statutes, “Mortgage Lenders, Correspondent Lenders, Brokers and Loan Originators”;
 
WHEREAS, RMG Mortgage is a Florida limited liability company with an office at 2200 North Ponce De Leon Boulevard, Suite 2, St. Augustine, Florida (“St. Augustine Office”);
 
WHEREAS, the St. Augustine Office is licensed by the Commissioner as a mortgage broker;
 
WHEREAS, pursuant to the authority granted by Section 36a-17 of the Connecticut General Statutes, the Commissioner, through the Consumer Credit Division of the Department of Banking, has investigated the activities of RMG Mortgage to determine if it has violated, is violating or is about to violate the provisions of the Connecticut General Statutes within the jurisdiction of the Commissioner;
 
WHEREAS, as a result of such investigation, the Commissioner alleges that RMG Mortgage has failed to maintain a surety bond that runs concurrently with the period of its mortgage broker license, in violation of Section 36a-492 of the 2010 Supplement to the General Statutes;
 
WHEREAS, pursuant to the authority granted by Section 36a-492(c) of the 2010 Supplement to the General Statutes, the Commissioner automatically suspended RMG Mortgage’s mortgage broker license in Connecticut for the St. Augustine Office effective July 11, 2010;
 
WHEREAS, the Commissioner believes that such allegation and automatic suspension would support initiation of enforcement proceeding against RMG Mortgage, including proceedings to issue a notice of automatic suspension pursuant to Section 36a-492(c) of the 2010 Supplement to the General Statutes, issue a temporary order to cease and desist pursuant to Section 36a-52(b) of the Connecticut General Statutes, revoke RMG Mortgage’s mortgage broker license in Connecticut for the St. Augustine Office pursuant to Sections 36a-494(a)(1) and 36a-494(a)(1)(C) and subsections (a) and (b) of Section 36a-51 of the 2010 Supplement to the General Statutes, and issue a cease and desist order against RMG 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;
 
WHEREAS, on July 22, 2010, RMG Mortgage filed a written notice of surrender of its mortgage broker license for the St. Augustine Office with the Commissioner;
 
WHEREAS, RMG Mortgage is unable to surrender its mortgage broker license in Connecticut for the St. Augustine Office on the Nationwide Mortgage Licensing System (“NMLS”) because the license had already been automatically suspended on July 11, 2010;
 
WHEREAS, RMG Mortgage represents to the Commissioner that it conducted no business under its Connecticut license without a surety bond;
 
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 RMG Mortgage acknowledge the possible consequences of formal administrative proceedings;
 
WHEREAS, RMG Mortgage voluntarily agrees to enter into this Settlement Agreement without admitting or denying any allegation set forth herein, and solely for the purpose of obviating the need for formal administrative proceedings to resolve this matter;
 
AND WHEREAS, RMG Mortgage, through its execution of this Settlement Agreement, voluntarily agrees to waive any rights to a hearing upon the allegation 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 RMG Mortgage enter into this Settlement Agreement as follows:

1. Upon entry of this Settlement Agreement, the Commissioner shall mark RMG Mortgage’s mortgage broker license as “Ordered Surrendered” on NMLS, whereupon such license shall be deemed surrendered;
2. Upon entry of this Settlement Agreement, this matter will be resolved and the Commissioner will not take any future enforcement action against RMG Mortgage based upon the allegation set forth herein; provided that entry of this Settlement Agreement is without prejudice to the right of the Commissioner to take enforcement action against RMG Mortgage if any representations made by RMG Mortgage are subsequently discovered to be untrue; and
3. Nothing in the entry of this Settlement Agreement shall adversely affect the ability of RMG 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.

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 25th day of August 2010.             ________/s/_________
                                                     Howard F. Pitkin
                                                     Banking Commissioner



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

                                            By:  ________/s/_________
                                                   Name:
                                                   Title:
                                                   RMG Mortgage Group, LLC


State of:  Florida

County of:  St. John's


On this the 23 day of August 2010, before me, Summer Kenton, the undersigned officer, personally appeared Rodney Gelinas who acknowledged himself to be the President of RMG Mortgage Group, LLC, a member managed/manager managed limited liability company, and 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.


                                         ________/s/_________
                                         Notary Public
                                         Date Commission Expires:  10/24/13


Administrative Orders and Settlements