DOB: Copiague Funding Corp. - CO

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

IN THE MATTER OF:

COPIAGUE FUNDING CORP.
d/b/a SOUTH SHORE MORTGAGE
COMPANY
NMLS # 1310

    ("South Shore Mortgage")

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

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

CONSENT ORDER        

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, South Shore Mortgage is a New York corporation that is 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 4, 2010, the Commissioner, through the Consumer Credit Division of the Department of Banking, conducted an examination pursuant to Sections 36a-17 and 36a-498f of the Connecticut General Statutes into the activities of South Shore 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 South Shore Mortgage employed or retained, during the period of February 7, 2006 through July 29, 2009, ten (10) individuals as originators or mortgage loan originators without registering or licensing 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 allegation would support initiation of enforcement proceedings against South Shore Mortgage, including proceedings to revoke South Shore Mortgage’s license pursuant to Section 36a-494(a) and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, issue a cease and desist order against South Shore Mortgage pursuant to Sections 36a-494(b) and 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 South Shore Mortgage pursuant to Sections 36a-494(b) and 36a-50(a) of the Connecticut General Statutes;
 
WHEREAS, initiation of such enforcement proceedings would constitute a “contested case” within the meaning of Section 4-166(2) 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 consent order, unless precluded by law;
 
WHEREAS, both the Commissioner and South Shore Mortgage acknowledge the possible consequences of formal administrative proceedings, and South Shore Mortgage voluntarily agrees to consent to the entry of the sanction described below without admitting or denying any allegation contained herein and solely for the purpose of obviating the need for further formal administrative proceedings concerning the allegation contained herein;
 
WHEREAS, South Shore Mortgage acknowledges that this Consent Order is a public record and, notwithstanding the foregoing paragraph, constitutes a finding by the Commissioner that South Shore Mortgage has been involved in a violation of a financial services-related regulation or statute required to be disclosed in response to regulatory disclosure questions on the MU1 Form, MU2 Form or MU4 Form on the Nationwide Mortgage Licensing System and Registry (“NMLS”), as such forms are applicable;
 
WHEREAS, South Shore Mortgage herein represents to the Commissioner that the individuals alleged to be unregistered originators or unlicensed mortgage loan originators in violation of Sections 36a-486(b) and 36a-511(b) of the then applicable Connecticut General Statutes, during the period of February 7, 2006 through July 29, 2009, are either currently licensed as mortgage loan originators under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes or are no longer engaged in any mortgage-related activity with South Shore Mortgage that would prohibit South Shore 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, South Shore 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 South Shore Mortgage requires licensure from the Commissioner under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
 
AND WHEREAS, South Shore Mortgage, through its execution of this Consent Order, voluntarily agrees to waive its procedural rights, including a right to notice and an opportunity for hearing as it pertains to the allegation set forth herein, and voluntarily waives its rights to seek judicial review or otherwise challenge or contest the validity of this Consent Order.


CONSENT TO ENTRY OF SANCTION

WHEREAS, South Shore Mortgage, through its execution of this Consent Order, consents to the Commissioner’s entry of a Consent Order imposing the following sanction:

No later than the date this Consent Order is executed by South Shore Mortgage, South Shore 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 Ten Thousand Dollars ($10,000) as a civil penalty.


CONSENT ORDER

NOW THEREFORE, the Commissioner enters the following:

1. The Sanction set forth above be and is herby entered;
2. Upon issuance of this Consent Order by the Commissioner, this matter will be resolved and the Commissioner will not take any future enforcement action against South Shore Mortgage based upon the allegation contained herein; provided that issuance of this Consent Order is without prejudice to the right of the Commissioner to take enforcement action against South Shore Mortgage based upon a violation of this Consent Order or the matters underlying its entry, if the Commissioner determines that compliance with the terms herein is not being observed or if any representation made by South Shore Mortgage and reflected herein is subsequently discovered to be untrue;
3. So long as this Consent Order is promptly disclosed by South Shore Mortgage on NMLS, nothing in the issuance of this Consent Order shall adversely affect the ability of South Shore 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; and
4.
This Consent Order shall become final when issued.
 

Dated at Hartford, Connecticut
this 24th day of February 2011.           ________/s/_________
                                                     Howard F. Pitkin
                                                     Banking Commissioner



CONSENT TO ENTRY OF ORDER

I, Robert C. Jacobsen, state on behalf of Copiague Funding Corp. d/b/a South Shore Mortgage Company, that I have read the foregoing Consent Order; that I know and fully understand its contents; that I am authorized to execute this Consent Order on behalf of Copiague Funding Corp. d/b/a South Shore Mortgage Company; that Copiague Funding Corp. d/b/a South Shore Mortgage Company agrees freely and without threat or coercion of any kind to comply with the sanction entered herein; and that Copiague Funding Corp. d/b/a South Shore Mortgage Company voluntarily agrees to enter into this Consent Order, expressly waiving the procedural rights set forth herein as to the matters described herein.                                            


                                            By:  ________/s/_________
                                                   Name:  Robert C. Jacobsen
                                                   Title:  Manager
                                                   Copiague Funding Corp. d/b/a South Shore
                                                   Mortgage Company


State of:  New York

County of:  Suffolk


On this the 17 day of February 2011, before me, Anna M. Chille, the undersigned officer, personally appeared Robert C. Jacobsen who acknowledged himself to be the Manager of Copiague Funding Corp. d/b/a South Shore Mortgage Company, a corporation, and that he as such Manager, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself as Manager.

In witness whereof I hereunto set my hand.


                                         ________/s/_________
                                         Notary Public
                                         Date Commission Expires:  Dec. 2, 2014


Administrative Orders and Settlements