DOB: AAA Southern New England Bank - CO

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IN THE MATTER OF:

AAA SOUTHERN NEW ENGLAND
BANK d/b/a AAA SOUTHERN NEW
ENGLAND BANK, INC.
NMLS # 179871

  ("AAA Southern New England Bank")

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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, AAA Southern New England Bank is a Rhode Island financial institution that is currently licensed as a mortgage broker under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
 
WHEREAS, on July 8, 2011, 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 AAA Southern New England Bank to determine compliance with the provisions of the Connecticut General Statutes within the jurisdiction of the Commissioner;
 
WHEREAS, prior to any notice of examination from the Commissioner, on June 21, 2011, AAA Southern New England Bank self-reported that AAA Southern New England Bank mistakenly and unintentionally employed or retained, during the period of September 23, 2009 through July 13, 2011, one (1) individual as a mortgage loan originator who was not licensed, in violation of Section 36a-486(b) of the Connecticut General Statutes;
 
WHEREAS, AAA Southern New England Bank acknowledges that this violation would support initiation of enforcement proceedings against AAA Southern New England Bank, including proceedings to revoke AAA Southern New England Bank’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 AAA Southern New England Bank 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 AAA Southern New England Bank 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 AAA Southern New England Bank acknowledge the possible consequences of formal administrative proceedings, and AAA Southern New England Bank 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, AAA Southern New England Bank acknowledges that this Consent Order is a public record and, notwithstanding the foregoing paragraph, constitutes a finding by the Commissioner that AAA Southern New England Bank 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, AAA Southern New England Bank herein represents to the Commissioner that the individual alleged to be an unlicensed mortgage loan originator in violation of Section 36a-486(b) of the Connecticut General Statutes, during the period of September 23, 2009 through July 13, 2011, is either currently licensed as a mortgage loan originator under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes or is no longer engaged in any mortgage-related activity with AAA Southern New England Bank that would prohibit AAA Southern New England Bank from engaging the services of such individual without licensure as a mortgage loan originator under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
 
WHEREAS, AAA Southern New England Bank 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 AAA Southern New England Bank 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 the services of an individual as a mortgage loan originator in the future without first confirming that such individual is duly licensed;
 
AND WHEREAS, AAA Southern New England Bank, 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, AAA Southern New England Bank, 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 AAA Southern New England Bank, AAA Southern New England Bank 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 One Thousand Dollars ($1,000) 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 AAA Southern New England Bank 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 AAA Southern New England Bank 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 AAA Southern New England Bank and reflected herein is subsequently discovered to be untrue;
3.
So long as this Consent Order is promptly disclosed by AAA Southern New England Bank on NMLS, nothing in the issuance of this Consent Order shall adversely affect the ability of AAA Southern New England Bank 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
4.
This Consent Order shall become final when issued.
 

Dated at Hartford, Connecticut
this 10th day of November 2011.         ________/s/_________
                                                     Howard F. Pitkin
                                                     Banking Commissioner



I, Mark A. Shaw, state on behalf of AAA Southern New England Bank d/b/a AAA Southern New England Bank, Inc., 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 AAA Southern New England Bank d/b/a AAA Southern New England Bank, Inc.; that AAA Southern New England Bank d/b/a AAA Southern New England Bank, Inc., agrees freely and without threat or coercion of any kind to comply with the sanction entered and terms and conditions ordered herein; and that AAA Southern New England Bank d/b/a AAA Southern New England Bank, Inc., 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:  Mark A. Shaw
                                                   Title:  President
                                                   AAA Southern New England Bank
                                                   d/b/a AAA Southern New England Bank, Inc.
                                                   
                                                   

State of:  Rhode Island

County of:  Providence

On this the 2nd day of November 2011, before me, Susan M. Costa, the undersigned officer, personally appeared Mark A. Shaw who acknowledged himself to be the President of AAA Southern New England Bank d/b/a AAA Southern New England Bank, Inc., a financial institution, 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 financial institution by himself as President.

In witness whereof I hereunto set my hand.


                                         ________/s/_________
                                         Notary Public
                                         Date Commission Expires:  6/27/13


Administrative Orders and Settlements