DOB: Settlers Mortgage Company - NOI Susp

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IN THE MATTER OF:

SETTLERS MORTGAGE
COMPANY, LLC
NMLS # 6086  
  
    ("Respondent")

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NOTICE OF INTENT TO SUSPEND
MORTGAGE BROKER LICENSE

                      AND

NOTICE OF RIGHT TO HEARING


I.  LEGAL AUTHORITY AND JURISDICTION

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”.
 
Pursuant to the authority granted by Section 36a-17 of the Connecticut General Statutes, the Commissioner, through the Consumer Credit Division (“Division”) of the Department of Banking, has investigated the activities of Respondent 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.
 
Section 36a-17(a) of the Connecticut General Statutes provides:
The commissioner, in the commissioner’s discretion, may make such public or private investigations or examinations within or outside this state, concerning any person subject to the jurisdiction of the commissioner, as the commissioner deems necessary to carry out the duties of the commissioner.
Subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes provide, in pertinent part, that:
(a)  The commissioner may suspend . . . any license issued by the commissioner under any provision of the general statutes by sending a notice to the licensee by registered or certified mail, return receipt requested, or by any express delivery carrier that provides a dated delivery receipt.  The notice shall be deemed received by the licensee on the earlier of the date of actual receipt or seven days after mailing or sending.  Any such notice shall include:  (1) A statement of the time, place, and nature of the hearing; (2) a statement of the legal authority and jurisdiction under which the hearing is to be held; (3) a reference to the particular sections of the general statutes . . . involved; (4) a short and plain statement of the matters asserted; and (5) a statement indicating that the licensee may file a written request for a hearing on the matters asserted within fourteen days of receipt of the notice. . . .
(b)  If a hearing is requested within the time specified in the notice, the commissioner shall hold a hearing upon the matters asserted in the notice unless the licensee fails to appear at the hearing.  After the hearing, the commissioner shall suspend . . . the license for any reason set forth in the applicable licensing provisions of the general statutes if the commissioner finds sufficient grounds exist for such suspension . . . .  If the licensee does not request a hearing within the time specified in the notice or fails to appear at the hearing, the commissioner shall suspend . . . the license.  No such license shall be suspended . . . except in accordance with the provisions of chapter 54.
Section 4-182(c) of the Connecticut General Statutes provides, in pertinent part, that:
No . . . suspension . . . of any license is lawful unless, prior to the institution of agency proceedings, the agency gave notice by mail to the licensee of facts or conduct which warrant the intended action, and the licensee was given an opportunity to show compliance with all lawful requirements for retention of the license.

II.  MATTERS ASSERTED
 
1.
Respondent is a Connecticut limited liability company with its place of business at 1 Evergreen Parkway, Westport, Connecticut.
2.
Respondent is currently licensed as a mortgage broker under Section 36a-489 of Part I of Chapter 668, Sections 36a-485 to 36a-534c, inclusive, of the Connecticut General Statutes.
3.
On August 17, 2011, the Division conducted an examination of Respondent.
4.
On September 7, 2011, the Division sent Respondent a letter enclosing the Report of Examination and a bill for the examination.
5.
On December 2, 2011, the Division sent a letter to Respondent by certified mail, return receipt requested, pursuant to Section 4-182(c) of the Connecticut General Statutes, concerning Respondent’s failure to pay the examination costs and gave Respondent the opportunity to show compliance with all lawful requirements for retention of its mortgage broker license (“Compliance Letter”).  On December 3, 2011, Respondent received the Compliance Letter.
6.
To date, Respondent has failed to respond to the Compliance Letter and has failed to pay the cost of the examination.
 
 
III.  STATUTORY BASIS FOR SUSPENSION
OF MORTGAGE BROKER LICENSE
 
Section 36a-65(c)(6) of the Connecticut General Statutes, as amended by Public Act 11-216, provides, in pertinent part, that:
A licensee under section 36a-489 . . . shall pay to the commissioner the actual cost of any examination of the licensee, as such cost is determined by the commissioner.  If the licensee fails to pay such cost not later than sixty days after receipt of demand from the commissioner, the commissioner may suspend the license until such costs are paid.
Section 36a-494(a)(1) of the Connecticut General Statutes provides, in pertinent part, that:
The commissioner may suspend . . . any . . . mortgage broker license . . . in accordance with the provisions of section 36a-51, . . . if the commissioner finds that the licensee, any control person of the licensee, the qualified individual or branch manager with supervisory authority, trustee, employee or agent of such licensee has done any of the following:  . . . (C) violated any of the provisions of this title or of any regulation adopted pursuant thereto, or any other law or regulation applicable to the conduct of its business . . . .
Respondent’s failure to pay the cost of an examination, as more fully described in paragraphs 3 through 6, inclusive, of the Matters Asserted, constitutes a violation of Section 36a-65(c)(6) of the Connecticut General Statutes, as amended.  Such violation constitutes sufficient grounds for the Commissioner to suspend Respondent’s mortgage broker license in Connecticut pursuant to Section 36a-494(a)(1)(C) and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes.
 
 
IV.  NOTICE OF INTENT TO SUSPEND MORTGAGE
BROKER LICENSE AND NOTICE OF RIGHT TO HEARING
 
WHEREAS, the Commissioner has reason to believe that Respondent has engaged in certain conduct in violation of Section 36a-65(c)(6) of the Connecticut General Statutes, as amended, which constitutes sufficient grounds to suspend Respondent’s mortgage broker license in Connecticut pursuant to Section 36a-494(a)(1)(C) and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes.
 
NOW THEREFORE, notice is hereby given to Respondent that the Commissioner intends to SUSPEND Respondent’s license to act as a mortgage broker in Connecticut, subject to Respondent’s right to a hearing on the allegation set forth above.
 
A hearing will be granted to Respondent if a written request for a hearing is received by the Department of Banking, Consumer Credit Division, 260 Constitution Plaza, Hartford, Connecticut 06103-1800 within fourteen (14) days following its receipt of this Notice of Intent to Suspend Mortgage Broker License and Notice of Right to Hearing as set forth in subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes.  This Notice of Intent to Suspend Mortgage Broker License and Notice of Right to Hearing shall be deemed received on the earlier of the date of actual receipt, or seven days after mailing or sending.  The enclosed Appearance and Request for Hearing Form must be completed and mailed to the above address.  If Respondent will not be represented by an attorney at the hearing, please complete the Appearance and Request for Hearing Form as “pro se”.  Once a written request for a hearing is received, the Commissioner may issue a notification of hearing and designation of hearing officer that acknowledges receipt of a request for a hearing, designates a hearing officer and sets the date of the hearing in accordance with Section 4-177 of the Connecticut General Statutes and Section 36a-1-21 of the Regulations of Connecticut State Agencies.  If a hearing is requested, the hearing will be held on January 10, 2012, at 10 a.m., at the Department of Banking, 260 Constitution Plaza, Hartford, Connecticut.
 
The hearing will be held in accordance with the provisions of Chapter 54 of the Connecticut General Statutes, unless Respondent fails to appear at the requested hearing.  At such hearing, Respondent will have the right to appear and present evidence, rebuttal evidence and argument on all issues of fact and law to be considered by the Commissioner.
 
If Respondent does not request a hearing within the time prescribed, the Commissioner will suspend Respondent’s license to act as a mortgage broker in Connecticut.
 
 
Issued at Hartford, Connecticut
this 13th day of December 2011.       ________/s/_________
                                                   Howard F. Pitkin
                                                   Banking Commissioner
 
 

CERTIFICATION
 
I hereby certify that on this 13th day of December 2011, the foregoing Notice of Intent to Suspend Mortgage Broker License and Notice of Right to Hearing was sent by registered mail, return receipt requested, to Settlers Mortgage Company, LLC, Attention:  Michael Stephan, President, 1 Evergreen Parkway, Westport, Connecticut 06880, registered mail no. RA878574750US.
 
 
                                                   ________/s/_________
                                                   Doniel Kitt
                                                   Prosecuting Attorney
 

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