DOB: Allied Home Mortgage Corporation - CO

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IN THE MATTER OF:

ALLIED HOME MORTGAGE
CORPORATION
NMLS # 2268

    ("Allied Home 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, Allied Home Mortgage is a Texas corporation with its main office at 6110 Pinemont Drive, Suite 220, Houston, Texas;
 
WHEREAS, Allied Home Mortgage is currently licensed as a mortgage lender under Part I of Chapter 668, Sections 36a-485 to 36a-534c, inclusive, of the Connecticut General Statutes;
 
WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking, conducted an investigation pursuant to Sections 36a-17 and 36a-498f of the Connecticut General Statutes into the activities of Allied Home 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, as a result of such investigation, on November 8, 2011, the Commissioner, acting pursuant to Sections 36a-52(b) and 36a-52(a) of the Connecticut General Statutes, issued a Temporary Order to Cease and Desist, Notice of Intent to Issue Order to Cease and Desist and Notice of Right to Hearing against Allied Home Mortgage (collectively “Notice”), which Notice is herein incorporated by reference;
 
WHEREAS, the Notice alleges that Allied Home Mortgage’s lack of access to funds due to:  (1) the Mortgagee Review Board of the U.S. Department of Housing and Urban Development’s suspension of Allied Home Mortgage’s ability to originate and underwrite new mortgages insured by the Federal Housing Administration on November 1, 2011, (2) the Government National Mortgage Association’s suspension of Allied Home Mortgage’s ability to issue securities in its Mortgage-Backed Securities program, and (3) the fact that Allied Home Mortgage’s warehouse lines of credit had been frozen, rendered it incapable of performing agreements with borrowers as provided in Section 36a-494(b) of the Connecticut General Statutes.  The Notice further alleges that such inability forms the basis to issue an order to cease and desist against Allied Home Mortgage pursuant to Sections 36a-494(b) and 36a-52(a) of the Connecticut General Statutes;
 
WHEREAS, on November 8, 2011, the Notice was sent by registered mail, return receipt requested, to Allied Home Mortgage (Registered Mail No. RA878574689US) and via facsimile;
 
WHEREAS, on November 10, 2011, Allied Home Mortgage received the Notice sent by registered mail;
 
WHEREAS, on November 10, 2011, Allied Home Mortgage requested surrender of its mortgage lender license in Connecticut for its branch office located at 647 Oaklawn Avenue, 1st Floor, Cranston, Rhode Island, on the Nationwide Mortgage Licensing System and Registry (“NMLS”).  On November 22, 2011, such surrender was accepted on NMLS;
 
WHEREAS, on November 15, 2011, the United States District Court for the Southern District of Texas, Houston Division, in the case of Allied Home Mortgage Corporation and James C. Hodge vs. Shaun Donovan, Secretary, United States Department of Housing and Urban Development, United States Department of Housing and Urban Development (Civil Action H-11-3864), granted plaintiffs’ motion for preliminary injunctive relief and enjoined HUD from enforcing its suspensions of plaintiffs;
 
WHEREAS, on November 21, 2011, Allied Home Mortgage requested surrender of its mortgage lender license in Connecticut for its branch office located at 171 East Main Street, Waterbury, Connecticut, on NMLS.  On November 23, 2011, such surrender was accepted on NMLS;
 
WHEREAS, on November 30, 2011, Allied Home Mortgage requested a hearing on the Notice, which hearing is currently scheduled for January 10, 2012;
 
WHEREAS, Section 36a-51(c) of the Connecticut General Statutes, as amended by Public Act 11-216, provides, in pertinent part, that, “[a]ny licensee may surrender any license issued by the commissioner under any provision of the general statutes by surrendering the license to the commissioner in person or by registered or certified mail, provided, in the case of a license issued pursuant to part I of chapter 668, such surrender shall be initiated by filing a request to surrender on . . . [NMLS] in accordance with section 36a-490”;
 
WHEREAS, Allied Home Mortgage attempted and was unable to request such surrender on NMLS of its mortgage lender license in Connecticut for its main office, and by letter dated December 6, 2011, Allied Home Mortgage requested such surrender;
 
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, the Commissioner and Allied Home Mortgage now desire to resolve the matters alleged in the Notice and set forth herein;
 
WHEREAS, Allied Home Mortgage voluntarily agrees to consent to the entry of the sanction described below without admitting or denying any allegation contained in the Notice and set forth herein and solely for the purpose of obviating the need for further formal administrative proceedings concerning the allegation contained in the Notice and set forth herein;
 
WHEREAS, Allied Home Mortgage agrees that the Notice may be used in construing the terms of this Consent Order and agrees to the language of this Consent Order;
 
AND WHEREAS, Allied Home Mortgage, through its execution of this Consent Order, voluntarily agrees to waive its procedural rights, including a right to a hearing as it pertains to the allegation contained in the Notice and 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, Allied Home 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 Allied Home Mortgage, Allied Home Mortgage shall request surrender of its mortgage lender license in Connecticut for its main office on NMLS.


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, the surrender of the license of Allied Home Mortgage to engage in the business of a mortgage lender in this state shall become effective;
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 Allied Home 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 Allied Home 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 Allied Home Mortgage and reflected herein is subsequently discovered to be untrue;
4.
So long as this Consent Order is promptly disclosed by Allied Home Mortgage on NMLS, nothing in the issuance of this Consent Order shall adversely affect the ability of Allied Home 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, provided all applicable legal requirements for such licenses are satisfied; and
5.
This Consent Order shall become final when issued.
 

Dated at Hartford, Connecticut
this 31st day of January 2012.            ________/s/_________
                                                     Howard F. Pitkin
                                                     Banking Commissioner



I, Jim C. Hodge, state on behalf of Allied Home Mortgage Corporation, 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 Allied Home Mortgage Corporation; that Allied Home Mortgage Corporation agrees freely and without threat or coercion of any kind to comply with the sanctions entered and terms and conditions ordered herein; and that Allied Home Mortgage Corporation 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:  Jim C. Hodge
                                                   Title:  President
                                                   Allied Home Mortgage Corporation
                                                   
                                                   

State of:  Texas

County of:  Harris

On this the 20th day of January 2012, before me, Cynthia A. Coogler, the undersigned officer, personally appeared Jim C. Hodge who acknowledged himself/herself to be the President of Allied Home Mortgage Corporation, a Texas corporation, and that he/she as such President, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself/herself as Jim C. Hodge.

In witness whereof I hereunto set my hand.


                                         ________/s/_________
                                         Notary Public
                                         Date Commission Expires:  6-27-2013
                                         


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