DOB: Phoenix Mortgage, LLC - SA

* * * * * * * * * * * * * * * * * * * *

IN THE MATTER OF:

PHOENIX MORTGAGE, LLC
d/b/a PHOENIX FINANCIAL

    ("Phoenix Mortgage")

* * * * * * * * * * * * * * * * * * * *

*
*
*
*
*
*
*
*
*
*

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, Phoenix Mortgage is a Connecticut limited liability company that is currently licensed as a mortgage broker in Connecticut under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
 
WHEREAS, on May 25, 2010, the Commissioner, through the Consumer Credit Division of the Department of Banking, conducted an examination pursuant to Section 36a-17(a) of the Connecticut General Statutes and Section 36a-498f of the 2010 Supplement to the General Statutes into the activities of Phoenix 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 Phoenix Mortgage employed or retained, during the period of September 18, 2008 through March 25, 2009, one (1) individual as a mortgage loan originator without licensing such individual, in violation of the then applicable Section 36a-486(b) of the Connecticut General Statutes;
 
WHEREAS, the Commissioner believes that such allegation would support initiation of enforcement proceedings against Phoenix Mortgage, including proceedings to revoke Phoenix 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 Phoenix 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 Phoenix 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 Phoenix Mortgage acknowledge the possible consequences of formal administrative proceedings;
 
WHEREAS, Phoenix 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 concerning the allegation described above;
 
WHEREAS, Phoenix Mortgage herein represents to the Commissioner that the individual alleged to be an unlicensed mortgage loan originator in violation of Section 36a-486(b) of the then applicable Connecticut General Statutes, during the period of September 18, 2008 through March 25, 2009, is licensed as a mortgage loan originator with Phoenix Mortgage under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
 
WHEREAS, Phoenix 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 Phoenix Mortgage requires licensure from the Commissioner under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
 
AND WHEREAS, Phoenix 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 Phoenix Mortgage enter into this Settlement Agreement as follows:

1. No later than the date this Settlement Agreement is executed by Phoenix Mortgage, Phoenix 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 One Thousand Dollars ($1,000) 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 Phoenix Mortgage based upon the allegation contained herein; provided that entry of this Settlement Agreement is without prejudice to the right of the Commissioner to take enforcement action against Phoenix Mortgage based on the allegation contained herein if any representations made by Phoenix Mortgage in this Settlement Agreement are subsequently discovered to be untrue or if Phoenix 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 Phoenix 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 Phoenix Mortgage to enforce this Settlement Agreement if the Commissioner determines that Phoenix 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 10th day of December 2010.         ________/s/_________
                                                     Howard F. Pitkin
                                                     Banking Commissioner



I, Stephen McFarlin, state on behalf of Phoenix Mortgage, LLC d/b/a Phoenix Financial, 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 Phoenix Mortgage, LLC d/b/a Phoenix Financial; and that Phoenix Mortgage, LLC d/b/a Phoenix Financial agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein.                          

                                            
                                    By:  ________/s/_________
                                           Name:  Stephen McFarlin   
                                           Title:  Managing Member     
                                           Phoenix Mortgage, LLC
                                           d/b/a Phoenix Financial


State of:  Connecticut

County of:  Fairfield

On this the 8th day of December 2010, before me, Jennifer J. Vitti, the undersigned officer, personally appeared Stephen McFarlin who acknowledged himself to be the Managing Member of Phoenix Mortgage, LLC d/b/a Phoenix Financial, a member managed/manager managed limited liability company, and that he, as such Managing Member, 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 Managing Member.

In witness whereof I hereunto set my hand.


                                     ________/s/_________
                                     Notary Public
                                     Date Commission Expires:  June 30, 2011
                                     


Administrative Orders and Settlements