DOB: Sookrani Sattie Narain - CO

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IN THE MATTER OF:

SOOKRANI SATTIE NARAIN
NMLS # 16386

    ("Narain")

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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, Narain was President and 100 percent owner of Nations Funding Source, Inc. (“Nations Funding”), a corporation previously licensed as a mortgage lender in Connecticut from February 2007 through September 2, 2010;
 
WHEREAS, Nations Funding has since surrendered its license and dissolved;
 
WHEREAS, Narain was never registered as an originator in Connecticut and was never licensed as a mortgage loan originator in Connecticut, but was authorized by Section 36a-485 of the then applicable Connecticut General Statutes to act, through July 30, 2009, as an originator or a mortgage loan originator on behalf of Nations Funding without such registration or licensure because she was an officer of such company;
 
WHEREAS, the Commissioner, through the Consumer Credit Division (“Division”) of the Department of Banking, investigated the activities of Narain pursuant to Sections 36a-17(a) and 36a-498f(a) of the Connecticut General Statutes to determine if she 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, on January 19, 2011, the Commissioner, acting pursuant to Sections 36a-494(b), 36a-52(a) and 36a-50(a) of the Connecticut General Statutes, issued a Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (collectively “Notice”) against Narain and several other respondents, which Notice is incorporated herein by reference;
 
WHEREAS, the Notice alleged, with regard to Narain, that Narain misrepresented, concealed, suppressed, intentionally omitted or otherwise intentionally failed to disclose material particulars of mortgage loan transactions to lenders entitled to such information when Narain identified herself or allowed herself to be identified as the actual interviewer on certain Uniform Residential Loan Applications for residential mortgage loans in this state (“Applications”) when she was not the actual interviewer for such Applications, which conduct forms a basis to issue an order to cease and desist pursuant to Sections 36a-494(b) and 36a-52(a) of the then applicable Connecticut General Statutes, and to impose a civil penalty pursuant to Sections 36a-494(b) and 36a-50(a) of the then applicable Connecticut General Statutes;
 
WHEREAS, the Commissioner hereby withdraws the allegations contained in the Notice that Narain misrepresented, concealed, suppressed, intentionally omitted or otherwise intentionally failed to disclose material particulars of mortgage loan transactions to lenders entitled to such information since, at the time Narain either identified herself or allowed herself to be identified as the actual interviewer, because Section 36a-494(b) of the then applicable Connecticut General Statutes only applied to registrants or licensees.  At all times relevant to the alleged conduct by Narain contained in the Notice, Narain was not required to be registered as an originator or licensed as a mortgage loan originator as described herein;
 
WHEREAS, the Notice further alleged, with regard to Narain, that Narain knowingly made false statements or reports when she identified herself or allowed herself to be identified to lenders as the actual interviewer on Applications with the intent to defraud and influence the actions of such lenders to make the loans, and the lenders made the loans, in violation of Section 36a-56 of the then applicable Connecticut General Statutes;
 
WHEREAS, the Notice was mailed on January 20, 2011, to Narain by registered mail, return receipt requested (Registered Mail No. RB028037527US);
 
WHEREAS, on January 24, 2011, Narain received the Notice;
 
WHEREAS, on or about February 1, 2011, the Department received an Appearance and Request for Hearing form from Narain, requesting a hearing on the Notice, which hearing is currently scheduled for August 17, 2011;
 
WHEREAS, as a result of subsequent investigation by the Commissioner, through the Division, the Commissioner further alleges that Narain crossed out the name of an individual identified as the interviewer on a July 2010 Application and identified herself or had herself identified as the interviewer on such Application;
 
WHEREAS, Narain represents that she was the actual interviewer on the July 2010 Application, and on approximately six (6) other applications taken after July 30, 2009;
 
WHEREAS, the Commissioner further alleges that Narain was required to be licensed as a mortgage loan originator in connection with the July 2010 Application and the approximately 6 other applications taken after July 30, 2009, was not, in violation of Section 36a-486(b) of the then applicable Connecticut General Statutes;
 
WHEREAS, such additional allegations would support initiation of further administrative proceedings against Narain, including proceedings to issue an order to cease and desist pursuant to Sections 36a-494(b) and 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty of up to one hundred thousand dollars ($100,000) per violation on Narain pursuant to Sections 36a-494(b) and 36a-50(a) of the Connecticut General Statutes;
 
WHEREAS, such additional 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 Narain acknowledge the possible consequences of formal administrative proceedings, and Narain voluntarily agrees to consent to the entry of the sanctions described below, and without admitting or denying the alleged violations of Section 36a-56 contained in the Notice and set forth herein or the alleged violations of Section 36a-486(b) of the then applicable Connecticut General Statutes, as set forth herein, and solely for the purpose of obviating the need for further formal administrative proceedings concerning all such allegations;
 
WHEREAS, Narain acknowledges that this Consent Order is a public record and, notwithstanding the foregoing paragraph, constitutes a finding by the Commissioner that Narain 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 MU2 Form or MU4 Form on the Nationwide Mortgage Licensing System and Registry (“NMLS”), as such forms may be applicable to Narain in the future;
 
WHEREAS, Narain herein represents to the Commissioner that she has not otherwise, on behalf of Nations Funding or any other entity, engaged in the business of a mortgage loan originator with respect to any dwelling located in this state since July 31, 2009, and will not engage in the business of a mortgage loan originator with respect to any dwelling located in this state in the future without first obtaining a license as required by Sections 36a-485 et seq. of the Connecticut General Statutes;
 
WHEREAS, Narain herein represents to the Commissioner that she is not presently a “control person”, as that term is defined in Section 36a-485 of the Connecticut General Statutes, for any “person”, as that term is defined in Section 36a-485 of the Connecticut General Statutes, engaged in the business of making residential mortgage loans or acting as a mortgage broker with respect to any dwelling located in this state;
 
WHEREAS, Narain herein represents to the Commissioner that she is not presently a “qualified individual” or “branch manager”, as those terms are utilized in Section 36a-488 of the Connecticut General Statutes, for any entity engaged in the business of making residential mortgage loans or acting as a mortgage broker with respect to any dwelling located in this state;
 
WHEREAS, Narain agrees that the Notice may be used in construing the terms of this Consent Order, and agrees to the language in this Consent Order;
 
AND WHEREAS, Narain, through her execution of this Consent Order, voluntarily agrees to waive her procedural rights, including a right to a hearing as it pertains to the alleged violations of Section 36a-56 of the then applicable Connecticut General Statutes contained in the Notice and set forth herein, and a right to notice and an opportunity for a hearing as it pertains to the alleged violation of Section 36a-486(b) of the then applicable Connecticut General Statutes set forth herein, and voluntarily waives her right to seek judicial review or otherwise challenge or contest the validity of this Consent Order.


CONSENT TO ENTRY OF SANCTIONS 

WHEREAS, Narain, through her execution of this Consent Order, consents to the Commissioner’s entry of a Consent Order imposing the following sanctions:

1.
Narain 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 Three Thousand Dollars ($3,000) as a civil penalty, in accordance with the following schedule:
Five Hundred Dollars ($500) no later than sixty days following the date this Consent Order is executed by Narain; an additional
 
Five Hundred Dollars ($500) on or before December 15, 2011; an additional
 
Five Hundred Dollars ($500) on or before January 15, 2012; an additional
 
Five Hundred Dollars ($500) on or before February 15, 2012; an additional
 
Five Hundred Dollars ($500) on or before March 15, 2012; and an additional
 
Five Hundred Dollars ($500) on or before April 15, 2012.
2.
Upon issuance of this Consent Order by the Commissioner, Narain shall be BARRED from the following activities for a period of three (3) years:
 
(a) applying for licensure with the Commissioner as a mortgage lender, mortgage correspondent lender, mortgage broker, mortgage loan originator, loan processor or underwriter or debt negotiator; and
(b) serving as a control person, qualified individual or branch manager for any person required to be licensed as a mortgage lender, mortgage correspondent lender, mortgage broker or debt negotiator.

CONSENT ORDER

 NOW THEREFORE, the Commissioner enters the following:

1. The Sanctions set forth above be and are 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 Narain 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 Narain 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 Narain and reflected herein is subsequently discovered to be untrue;
3. So long as this Consent Order is disclosed by Narain on NMLS or directly to the Commissioner in connection with any future application for licensure, nothing in the issuance of this Consent Order shall adversely affect the ability of Narain to apply for or to obtain a license from the Commissioner as a mortgage lender, mortgage correspondent lender, mortgage broker, loan processor or underwriter or debt negotiator, or to serve as a control person, qualified individual or branch manager for any person required to be licensed as a mortgage lender, mortgage correspondent lender, mortgage broker or debt negotiator, provided all sanctions set forth herein have been fully satisfied and the civil penalty fully paid, and all applicable legal requirements for such license or position are satisfied; and
4.
This Consent Order shall become final when issued.
 

Issued at Hartford, Connecticut
this 19th day of September 2011.        ________/s/_________
                                                     Howard F. Pitkin
                                                     Banking Commissioner


 


I, Sookrani Sattie Narain, state that I have read the foregoing Consent Order; that I know and fully understand its contents; that I agree freely and without threat or coercion of any kind to comply with the sanction entered and terms and conditions ordered herein; and that I voluntarily agree to enter into this Consent Order, expressly waiving the procedural rights set forth herein as to the matters described herein.                                          


                                                   ________/s/_________
                                                   Sookrani Sattie Narain
                                                   

State of:  Florida

County of:  Broward


On this the 12 day of September 2011, before me, _______________________________, the undersigned officer, personally appeared Sookrani Sattie Narain, known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument and acknowledged that he executed the same for the purposes therein contained.

In witness whereof I hereunto set my hand.


                                         ________/s/_________
                                         Notary Public
                                         Date Commission Expires:  September 7, 2013 


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