DOB: Mortgage Markets CUSO - CO

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IN THE MATTER OF:

MORTGAGE MARKETS CUSO, LLC
NMLS # 157939

    ("Mortgage Markets")

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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, Mortgage Markets is a Connecticut limited liability company and a wholly-owned subsidiary of First New England Federal Credit Union (“First New England”), a federal credit union;
 
WHEREAS, the Commissioner, through the Consumer Credit Division (“Division”) of the Department of Banking, conducted an investigation pursuant to Sections 36a-17 and 36a-498f of the Connecticut General Statutes into the activities of Mortgage Markets to determine if Mortgage Markets 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 investigation, the Commissioner alleges that Mortgage Markets was engaged in the business of making residential mortgage loans without a mortgage lender license, in violation of Section 36a-486(a) of the Connecticut General Statutes;
 
WHEREAS, as a result of such investigation, the Commissioner also alleges that Mortgage Markets employed or retained one (1) individual as a mortgage loan originator who was not licensed, in violation of 36a-486(b)(1) of the Connecticut General Statutes;
 
WHEREAS, the Commissioner believes that such allegations would support initiation of enforcement proceedings against Mortgage Markets, including proceedings to issue a cease and desist order against Mortgage Markets 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 Mortgage Markets 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 Mortgage Markets acknowledge the possible consequences of formal administrative proceedings, and Mortgage Markets 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 allegations contained herein;
 
WHEREAS, Mortgage Markets acknowledges that this Consent Order is a public record and, notwithstanding the foregoing paragraph, constitutes a finding by the Commissioner that Mortgage Markets 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, Mortgage Markets is presently licensed as a mortgage lender in Connecticut and the mortgage loan originator referenced herein is presently licensed as a mortgage loan originator under Part I of Chapter 668, Sections 36a-485 et. seq. of the Connecticut General Statutes;
 
WHEREAS, Mortgage Markets herein represents to the Commissioner that it has reviewed and updated its internal policies, procedures and controls for assessing whether any office of Mortgage Markets and any individual engaged in mortgage-related activity with Mortgage Markets requires licensure from the Commissioner under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes, and agrees that it will not engage in unlicensed activity or engage the services of an individual as a mortgage loan originator in the future without first confirming that such individual is duly licensed;
 
AND WHEREAS, Mortgage Markets, 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 allegations set forth herein, and voluntarily waives its right to seek judicial review or otherwise challenge or contest the validity of this Consent Order.


CONSENT TO ENTRY OF SANCTIONS

WHEREAS, Mortgage Markets, 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 Mortgage Markets, Mortgage Markets 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 Eleven Thousand Dollars ($11,000) as a civil penalty.


CONSENT ORDER

NOW THEREFORE, the Commissioner enters the following:

1. The Sanction set forth above be and is hereby 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 Mortgage Markets based upon the allegations contained herein; provided that issuance of this Consent Order is without prejudice to the right of the Commissioner to take enforcement action against Mortgage Markets 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 Mortgage Markets and reflected herein is subsequently discovered to be untrue;
3. So long as this Consent Order is promptly disclosed by Mortgage Markets on NMLS, nothing in the issuance of this Consent Order shall adversely affect the ability of Mortgage Markets 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, provided all applicable legal requirements for such license are satisfied; and
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This Consent Order shall become final when issued.
 

Dated at Hartford, Connecticut
this 17th day of March 2011.              ________/s/_________
                                                     Howard F. Pitkin
                                                     Banking Commissioner

 

CONSENT TO ENTRY OF ORDER

I, Victor Petroni, state on behalf of Mortgage Markets CUSO, LLC, 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 Mortgage Markets CUSO, LLC; that Mortgage Markets CUSO, LLC agrees freely and without threat or coercion of any kind to comply with the sanction entered and terms and conditions ordered herein; and that Mortgage Markets CUSO, LLC 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:  Victor Petroni                      
                                                   Title:  President          
                                                   Mortgage Markets CUSO, LLC


State of:  Connecticut

County of:  Hartford


On this the 11th day of March 2011, before me, __________________, the undersigned officer, personally appeared Victor Petroni who acknowledged himself/herself to be the President of Mortgage Markets CUSO, LLC, a member managed/manager managed limited liability company that he/she 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/herself as President.

In witness whereof I hereunto set my hand.


                                         ________/s/_________
                                         Notary Public
                                         Date Commission Expires:  4/30/2015


Administrative Orders and Settlements