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IN THE MATTER OF:
PARKS, RANDY E.
AND FISHMAN, DAVID
d/b/a HOMEOWNERS FINANCE CO.
NMLS # 77271
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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, Homeowners Finance is a Connecticut partnership 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 December 22, 2010, Homeowners Finance filed an application for renewal of its mortgage 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 Homeowners Finance 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 Homeowners Finance has failed to file a new form of surety bond in an appropriate amount by July 31, 2010, 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 Homeowners Finance, including proceedings to revoke and to refuse to renew Homeowners Finance’s mortgage 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 Homeowners Finance 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 Homeowners Finance 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, on December 12, 2010, Homeowners Finance 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, 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 Homeowners Finance acknowledge the possible consequences of formal administrative proceedings, and Homeowners Finance 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, Homeowners Finance acknowledges that this Consent Order is a public record and, notwithstanding the foregoing paragraph, constitutes a finding by the Commissioner that Homeowners Finance 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, Homeowners Finance 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, Homeowners Finance, 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 right to seek judicial review or otherwise challenge or contest the validity of this Consent Order.
CONSENT TO ENTRY OF SANCTION
WHEREAS, Homeowners Finance 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 Homeowners Finance, Homeowners Finance 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.
NOW THEREFORE, the Commissioner enters the following:
||The Sanction set forth above be and is hereby entered;|
||Homeowners Finance 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 Homeowners Finance under Part I of Chapter 668 of the Connecticut General Statutes;|
||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 Homeowners Finance 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 Homeowners Finance 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 Homeowners Finance and reflected herein is subsequently discovered to be untrue; |
So long as this Consent Order is promptly disclosed by Homeowners Finance on NMLS, nothing in the issuance of this Consent Order shall adversely affect the ability of Homeowners Finance 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
This Consent Order shall become final when issued.
Dated at Hartford, Connecticut
this 18th day of May 2011. ________/s/_________
Howard F. Pitkin
I, David Fishman, state on behalf of Parks, Randy E. and Fishman, David d/b/a Homeowners Finance Co., 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 Parks, Randy E. and Fishman, David d/b/a Homeowners Finance Co.; that Parks, Randy E. and Fishman, David d/b/a Homeowners Finance Co. agree freely and without threat or coercion of any kind to comply with the sanction entered and terms and conditions ordered herein; and that Parks, Randy E. and Fishman, David d/b/a Homeowners Finance Co. agree to enter into this Consent Order, expressly waiving the procedural rights set forth herein as to the matters described herein.
Name: David Fishman
Parks, Randy E. and Fishman, David
d/b/a Homeowners Finance Co.
State of: Connecticut
County of: Hartford
On this the 11th day of May 2011, before me, Michael J. Middleton, the undersigned officer, personally appeared David Fishman who acknowledged himself to be the Partner of Parks, Randy E. and Fishman, David d/b/a Homeowners Finance Co., a general/limited partnership, and that he as such Partner, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the partnership by himself as Partner.
In witness whereof I hereunto set my hand.
Date Commission Expires: 11/30/2015
Administrative Orders and Settlements