DOB: University Mortgage - CO

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IN THE MATTER OF:

UNIVERSITY MORTGAGE LLC
NMLS # 69351

    ("University Mortgage")

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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, University Mortgage is a New Jersey limited liability company that is currently 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 31, 2010, University Mortgage filed an application for renewal of its mortgage correspondent lender license on the Nationwide Mortgage Licensing System and Registry (“NMLS”) for the January 1 through December 31, 2011 licensing period.  Such application is currently pending;
 
WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking, pursuant to the authority granted by Sections 36a-17(a) and 36a-498f of the Connecticut General Statutes, has investigated the activities of University 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, effective July 31, 2010, the bond requirements contained in Section 36a-492 of the Connecticut General Statutes required licensees to file a new form of surety bond and required that such bond be maintained in a penal sum that reflects the aggregate dollar amount of loans originated, as determined by the Commissioner;
 
WHEREAS, as a result of the investigation, the Commissioner alleges that, as of July 31, 2010, University Mortgage filed a new form of surety bond which was not in an appropriate amount, in violation of Section 36a-492 of the Connecticut General Statutes;
 
WHEREAS, the Commissioner believes that such allegation would support initiation of enforcement proceeding against University Mortgage, including proceedings to revoke and refuse to renew University Mortgage’s mortgage correspondent lender license in Connecticut pursuant to Sections 36a-494(a)(1) and 36a-494(a)(1)(C) and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, issue a cease and desist order against University 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 upon University Mortgage pursuant to Sections 36a-494(b) and 36a-50(a) of the Connecticut General Statutes;
 
WHEREAS, on January 4, 2011, University Mortgage filed a new form of surety bond in a penal sum that reflects the aggregate dollar amount of loans originated, as determined by the Commissioner;
 
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 University Mortgage acknowledge the possible consequences of formal administrative proceedings, and University 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, University Mortgage acknowledges that this Consent Order is a public record and, notwithstanding the foregoing paragraph, constitutes a finding by the Commissioner that University 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 NMLS, as such forms are applicable;
 
WHEREAS, University Mortgage herein represents to the Commissioner that it has reviewed and updated its internal policies, procedures and controls for assessing whether it has filed with the Commissioner a surety bond in the appropriate form and in an appropriate amount required under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
 
AND WHEREAS, University 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, University 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 University Mortgage, University 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 Five Hundred Dollars ($500) 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. University Mortgage shall cease and desist from violating Section 36a-492 of the Connecticut General Statutes, and agrees to maintain surety bonds that run concurrently with any license issued to University Mortgage under Part I of Chapter 668 of the Connecticut General Statutes;
3. 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 University 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 University 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 University Mortgage and reflected herein is subsequently discovered to be untrue;
4.
So long as this Consent Order is promptly disclosed by University Mortgage on NMLS, nothing in the issuance of this Consent Order shall adversely affect the ability of University 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
5.
This Consent Order shall become final when issued.
 


Dated at Hartford, Connecticut
this 3rd day of May 2011.                   ________/s/_________
                                                     Howard F. Pitkin
                                                     Banking Commissioner



CONSENT TO ENTRY OF ORDER

I, Steven Lo Bue, state on behalf of University Mortgage 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 University Mortgage LLC; that University Mortgage 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 University Mortgage LLC agrees to enter into this Consent Order, expressly waiving the procedural rights set forth herein as to the matters described herein.                                           


                                            By:  ________/s/_________
                                                   Name:  Steven Lo Bue                         
                                                   Title:  President 
                                                   University Mortgage LLC


State of:  New Jersey

County of:  Bergen


On this the 28th day of April 2011, before me, Michele Verost, the undersigned officer, personally appeared Steven Lo Bue who acknowledged himself to be the President of University Mortgage 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:  August 6, 2011


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