DOB: M&G Mortgage Services, et al - NOI Rev-CD-CP

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IN THE MATTER OF:

M&G MORTGAGE SERVICES INC
NMLS # 90740
("M&G Mortgage")

JOHN GRAD
NMLS # 92042
("Grad")

GREG POLK
NMLS # 92568
("Polk")

  (collectively, "Respondents")


 
 
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NOTICE OF INTENT TO REVOKE
MORTGAGE CORRESPONDENT
LENDER LICENSE

NOTICE OF INTENT TO ISSUE
ORDER TO CEASE AND DESIST

NOTICE OF INTENT TO IMPOSE
CIVIL PENALTY

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 2012 Supplement to the General Statutes and Section 36a-498f of the Connecticut General Statutes, the Commissioner, through the Consumer Credit Division (“Division”) of the Department of Banking, has investigated the activities of Respondents to determine if they have violated, are violating or are about to violate the provisions of the Connecticut General Statutes within the jurisdiction of the Commissioner.
 
Section 36a-17(a) of the 2012 Supplement to the 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.

Section 36a-498f(a) of the Connecticut General Statutes provides that:

In addition to any authority provided under this title, the Banking Commissioner shall have the authority to conduct investigations and examinations as follows:

(1)  For purposes of initial licensing, license renewal, license suspension, license conditioning, license revocation or termination, or general or specific inquiry or investigation to determine compliance with sections 36a-485 to 36a-498f, inclusive, 36a-534a and 36a-534b, the commissioner may access, receive and use any books, accounts, records, files, documents, information or evidence including, but not limited to: (A) Criminal, civil and administrative history information; (B) personal history and experience information including independent credit reports obtained from a consumer reporting agency described in Section 603(p) of the federal Fair Credit Reporting Act, 15 USC 1681a; and (C) any other documents, information or evidence the commissioner deems relevant to the inquiry or investigation regardless of the location, possession, control or custody of such documents, information or evidence.

(2)  For the purposes of investigating violations or complaints arising under sections 36a-485 to 36a-498f, inclusive, 36a-534a or 36a-534b or for the purposes of examination, the commissioner may review, investigate or examine any licensee, individual or person subject to said sections as often as necessary in order to carry out the purposes of said sections.  The commissioner may direct, subpoena or order the attendance of and examine under oath all persons whose testimony may be required about the loans or the business or subject matter of any such examination or investigation, and may direct, subpoena or order such person to produce books, accounts, records, files and any other documents the commissioner deems relevant to the inquiry.

Subsections (a) and (b) of Section 36a-51 of the 2012 Supplement to the General Statutes provides, in pertinent part, that:

(a)  The commissioner may . . . revoke . . . 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 . . . revoke . . . 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 . . . revocation . . . .  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 . . . revoke . . . the license.  No such license shall be . . . revoked except in accordance with the provisions of chapter 54.

Section 36a-52(a) of the Connecticut General Statutes provides, in pertinent part, that:

Whenever it appears to the commissioner that any person has violated, is violating or is about to violate any provision of the general statutes within the jurisdiction of the commissioner, . . . the commissioner may send a notice to such person 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 person 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 . . . alleged to have been violated; (4) a short and plain statement of the matters asserted; and (5) a statement indicating that such person may file a written request for a hearing on the matters asserted within fourteen days of receipt of the notice.  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 person fails to appear at the hearing.  After the hearing, the commissioner shall determine whether an order to cease and desist should be issued against the person named in the notice.  If the person does not request a hearing within the time specified in the notice or fails to appear at the hearing, the commissioner shall issue an order to cease and desist against the person.  No such order shall be issued except in accordance with the provisions of chapter 54.

Section 36a-50(a) of the Connecticut General Statutes provides, in pertinent part, that:

(1)  Whenever the commissioner finds as the result of an investigation that any person has violated any provision of the general statutes within the jurisdiction of the commissioner, . . . the commissioner may send a notice to such person 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 person on the earlier of the date of actual receipt or seven days after mailing or sending.  Any such notice shall include:  (A) A statement of the time, place, and nature of the hearing; (B) a statement of the legal authority and jurisdiction under which the hearing is to be held; (C) a reference to the particular sections of the general statutes . . . alleged to have been violated; (D) a short and plain statement of the matters asserted; (E) the maximum penalty that may be imposed for such violation; and (F) a statement indicating that such person may file a written request for a hearing on the matters asserted within fourteen days of receipt of the notice.

(2)  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 such person fails to appear at the hearing.  After the hearing, if the commissioner finds that the person has violated any such provision, . . . the commissioner may, in the commissioner’s discretion and in addition to any other remedy authorized by law, order that a civil penalty not exceeding one hundred thousand dollars per violation be imposed upon such person.  If such person does not request a hearing within the time specified in the notice or fails to appear at the hearing, the commissioner may, as the facts require, order that a civil penalty not exceeding one hundred thousand dollars per violation be imposed upon such person.

(3)  Each action undertaken by the commissioner under this subsection shall be in accordance with the provisions of chapter 54.

Section 4-182(c) of the Connecticut General Statutes provides, in pertinent part, that:

No revocation, suspension, annulment or withdrawal 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 the retention of the license.


II.  MATTERS ASSERTED

1.
M&G Mortgage is a Connecticut corporation with its main office at 47 North Main Street, West Hartford, Connecticut.  M&G Mortgage currently holds a mortgage correspondent lender license in Connecticut under Part I of Chapter 668, Sections 36a-485 to 36a-534c, inclusive, of the Connecticut General Statutes.
2.
Grad is President of M&G Mortgage and is currently licensed as a mortgage loan originator in Connecticut.
3.
Polk is not currently licensed as a mortgage loan originator in Connecticut.  Polk had a mortgage loan originator license in Connecticut which expired on January 1, 2010.
4.
On October 8, 2010, the Division conducted an examination into the activities of M&G Mortgage and, as a result, the Commissioner alleged that, during the period of August 31, 2009 to March 29, 2010, M&G Mortgage employed or retained six (6) individuals as mortgage loan originators without licensing them, in violation of Section 36a-486(b) of the then applicable Connecticut General Statutes.  Polk was one of the unlicensed individuals.
5.
On February 22, 2011, Grad, on behalf of M&G Mortgage, responded to the Commissioner’s allegations stating that “M&G Mortgage Services has made a mandatory rule that all individuals whom start with our company get licensed and comply with all NMLS, Federal and state requirements prior to selling loans. . . .  The loan officers that were cited in the report were in the process of getting licensed or missing certain information in the NMLS system in order to be deemed in approved status”.
6.
On February 24, 2011, M&G Mortgage entered into a Settlement Agreement with the Commissioner concerning the allegations of employing or retaining unlicensed mortgage loan originators in Connecticut, as more fully described in paragraph 4 above.  In the Settlement Agreement, M&G Mortgage represented to the Commissioner that “the individuals alleged to be unlicensed mortgage loan originators . . . are either currently licensed as mortgage loan originators . . . or are no longer engaged in any mortgage-related activity with M&G Mortgage that would prohibit M&G Mortgage from engaging the services of such individuals without licensure as mortgage loan originators”.
7.
From at least March to June 2011, Polk, at the location of 1068 Main Street, Newington, Connecticut, represented himself, by business cards and other means, to be a Branch Manager of M&G Mortgage.  Polk engaged in mortgage activities at such location with the expectation of compensation or gain, including, taking and soliciting financial information from Connecticut residents in anticipation of finding residential mortgage loans for such residents and referring prospective borrowers to M&G Mortgage.  In addition, such Newington location prominently displayed “M&G Mortgage Services” in its window, but was not a licensed branch of M&G Mortgage.
8. On August 2, 2011, pursuant to Section 4-182(c) of the Connecticut General Statutes, the Division sent a letter to M&G Mortgage citing such branch location and giving M&G Mortgage an opportunity to show compliance with all lawful requirements for retention of its mortgage correspondent lender license in Connecticut.
9. On August 8, 2011, M&G Mortgage submitted a response to the Commissioner, signed by Grad.  In pertinent part, the response stated that, “[t]here are no loans that are processed in this location and no applications taken by unlicensed loan officers.  Greg Polk has kindly allowed us to put our name on his window simply for advertising purposes. . . .  On occasion I have met individuals to collect income docs or get signatures for a certain file that we have a mutual relationship on”.  The Commissioner was not persuaded by the response.
10.
From at least March 2011 to February 2012, Polk and M&G Mortgage advertised their services via the web at www.teampolk.com.  The website listed several individuals as “Mortgage Originators” who were not duly licensed as such, and announced Greg Polk as the Branch Manager for M&G Mortgage in Newington.  The website also listed Grad as President of M&G Mortgage and stated his duties consisted of “managing the day-to-day activities including training, hiring and overseeing operations”.  Also during such time, on behalf of M&G Mortgage, at least one individual who was not licensed as a mortgage loan originator in Connecticut, took a residential mortgage loan application, offered or negotiated terms of a residential mortgage loan or referred applicants to M&G Mortgage, with the expectation of compensation or gain.
 

III.  STATUTORY BASIS FOR REVOCATION OF MORTGAGE
CORRESPONDENT LENDER LICENSE, ORDER TO CEASE AND
DESIST AND IMPOSITION OF CIVIL PENALTY

Section 36a-494 of the 2012 Supplement to the General Statutes provides, in pertinent part, that:

(a)(1)  The commissioner may . . . revoke . . . any . . . mortgage correspondent lender . . . license or take any other action, in accordance with the provisions of section 36a-51, for any reason which would be sufficient grounds for the commissioner to deny an application for such license under sections 36a-485 to 36a-498f, inclusive, 36a-534a and 36a-534b, or 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 . . . .

(b)  Whenever it appears to the commissioner that any person has violated, is violating or is about to violate any of the provisions of sections 36a-485 to 36a-498f, inclusive, 36a-534a and 36a-534b, . . . the commissioner may take action against such person or licensee in accordance with sections 36a-50 and 36a-52.

Section 36a-485(15) of the Connecticut General Statutes, as amended by Public Act 11-110, effective July 21, 2011, and Public Act 11-216, effective October 1, 2011, currently codified in the 2012 Supplement to the General Statutes, provides, in pertinent part, that:

“Mortgage loan originator” means an individual who for compensation or gain or with the expectation of compensation or gain (A) takes a residential mortgage loan application or (B) offers or negotiates terms of a residential mortgage loan. 

Section 36a-486(a) of the Connecticut General Statutes provides, in pertinent part, that:

No person shall engage in the business of making residential mortgage loans or act as a mortgage broker in this state unless such person has first obtained the required license for its main office and each branch office where such business is conducted in accordance with the provisions of sections 36a-485 to 36a-498f, inclusive, 36a-534a and 36a-534b.  Effective April 1, 2010, any such person who is an individual shall also obtain a mortgage loan originator license prior to conducting such business unless such individual does not engage directly in the activities of a mortgage loan originator.

Section 36a-486(b)(1) of the Connecticut General Statutes, in effect prior to October 1, 2011, provided, in pertinent part, that:

No person licensed as a . . . mortgage correspondent lender . . . shall engage the services of a mortgage loan originator unless such mortgage loan originator is licensed under section 36a-489.  An individual, unless specifically exempted under subdivision (2) of this subsection, shall not engage in the business of a mortgage loan originator with respect to any dwelling, as defined in Section 103 of the Consumer Credit Protection Act, 15 USC 1602, located in this state without first obtaining and maintaining annually a license as a mortgage loan originator under section 36a-489. . . .

Section 36a-486(b)(1) of the 2012 Supplement to the General Statutes, which incorporates Section 10 of Public Act 11-216 effective October 1, 2011, provides, in pertinent part, that:

No person licensed as a . . . mortgage correspondent lender . . . shall engage the services of a mortgage loan originator . . . unless such mortgage loan originator . . . is licensed under section 36a-489.  An individual, unless specifically exempted under subdivision (2) of this subsection, shall not engage in the business of a mortgage loan originator on behalf of a licensee or a person exempt under section 36a-487 with respect to any residential mortgage loan without first obtaining and maintaining annually a license as a mortgage loan originator under section 36a-489. . . .

Section 36a-53a of the Connecticut General Statutes provides, in pertinent part, that:

No person shall make or cause to be made orally or in any document filed with the commissioner . . . any statement which is, at the time and in the light of the circumstances under which it is made, false or misleading in any material respect.

Section 36a-496 of the Connecticut General Statutes provides, in pertinent part, that:

No person engaged in the business of making residential mortgage loans in this state, whether licensed in accordance with the provisions of sections 36a-485 to 36a-498a, inclusive, . . . shall accept applications or referral of applicants from, or pay a fee to, any . . . mortgage loan originator who is required to be licensed under said sections but was not, as of the time of the performance of such . . . mortgage loan originator’s services in connection with loans made or to be made by the . . . mortgage correspondent lender, licensed to act as such by the commissioner, if the . . . mortgage correspondent lender has actual knowledge that the . . . mortgage loan originator was not licensed by the commissioner.

1.
Polk engaging in the business of a mortgage loan originator in Connecticut on behalf of M&G Mortgage without being duly licensed as such, as more fully described in paragraphs 3, 7 and 10 of the Matters Asserted, constitutes a violation of Section 36a-486(b)(1) of the Connecticut General Statutes, in effect prior to October 1, 2011, and Section 36a-486(b)(1) of the 2012 Supplement to the General Statutes.  Such violation forms a basis to issue an order to cease and desist against Polk pursuant to Section 36a-494(b) of the 2012 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes and impose a civil penalty upon Polk pursuant to Section 36a-494(b) of the 2012 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes.  Section 36a-50(a) of the Connecticut General Statutes authorizes the Commissioner to impose a civil penalty upon Polk in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation.
2.
M&G Mortgage engaging the services of at least one mortgage loan originator who was not licensed as such, as more fully described in paragraphs 3, 7 and 10 of the Matters Asserted, constitutes a violation of Section 36a-486(b)(1) of the Connecticut General Statutes, in effect prior to October 1, 2011, and Section 36a-486(b)(1) of the 2012 Supplement to the General Statutes.  Such violation forms a basis to issue an order to cease and desist against M&G Mortgage pursuant to Section 36a-494(b) of the 2012 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes and impose a civil penalty upon M&G Mortgage pursuant to Section 36a-494(b) of the 2012 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes.  Section 36a-50(a) of the Connecticut General Statutes authorizes the Commissioner to impose a civil penalty upon M&G Mortgage in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation.
3.
M&G Mortgage engaging in the business of making residential mortgage loans in Connecticut from a branch office which was not licensed, as more fully described in paragraphs 1 and 7 through 10, inclusive, of the Matters Asserted, constitutes a violation of Section 36a-486(a) of the Connecticut General Statutes.  Such violation constitutes sufficient grounds for the Commissioner to revoke M&G Mortgage’s mortgage correspondent lender license pursuant to Section 36a-494(a)(1)(C) and subsections (a) and (b) of Section 36a-51 of the 2012 Supplement to the General Statutes, and forms the basis to issue an order to cease and desist pursuant to Section 36a-494(b) of the 2012 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes and impose a civil penalty pursuant to Section 36a-494(b) of the 2012 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes.  Section 36a-50(a) of the Connecticut General Statutes authorizes the Commissioner to impose a civil penalty upon M&G Mortgage in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation.
4. M&G Mortgage’s representation to the Commissioner in its Settlement Agreement that the alleged unlicensed mortgage loan originators had either become licensed or ceased to engage in such activity, as more fully described in paragraph 6 of the Matters Asserted, when in fact, at least one individual continued to engage in such activity without a license, as more fully described in paragraphs 7 and 10 of the Matters Asserted, was, at the time and in the light of the circumstances under which it was made, false or misleading in a material respect, in violation of Section 36a-53a of the Connecticut General Statutes.  Such violation forms a basis to issue an order to cease and desist against M&G Mortgage pursuant to Section 36a-52(a) of the Connecticut General Statutes and impose a civil penalty upon M&G Mortgage pursuant to Section 36a-50(a) of the Connecticut General Statutes.  Section 36a-50(a) of the Connecticut General Statutes authorizes the Commissioner to impose a civil penalty upon M&G Mortgage in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation.
5. Grad’s statements to the Commissioner concerning Polk’s activities at the Newington location, as more fully described in paragraph 9 of the Matters Asserted, when, in fact, Polk engaged in mortgage activities at such location and represented himself to be a Branch Manager of M&G Mortgage, as more fully described in paragraphs 7 and 10 of the Matters Asserted, was, at the time and in the light of the circumstances under which it was made, false or misleading in a material respect, in violation of Section 36a-53a of the Connecticut General Statutes.  Such violation forms a basis to issue an order to cease and desist against Grad pursuant to Section 36a-52(a) of the Connecticut General Statutes and impose a civil penalty upon Grad pursuant to Section 36a-50(a) of the Connecticut General Statutes.  Section 36a-50(a) of the Connecticut General Statutes authorizes the Commissioner to impose a civil penalty upon Grad in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation.
6.
M&G Mortgage’s acceptance of applications or referrals of applicants from, or its payment of a fee to, at least one individual who was required to be licensed as a mortgage loan originator, but who was not licensed as such, as more fully described in paragraphs 1, 3, 7, 9 and 10 of the Matters Asserted, constitutes a violation of Section 36a-496 of the Connecticut General Statutes.  Such violation forms a basis to issue an order to cease and desist against M&G Mortgage pursuant to Section 36a-494(b) of the 2012 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes and impose a civil penalty upon M&G Mortgage pursuant to Section 36a-494(b) of the 2012 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes.  Section 36a-50(a) of the Connecticut General Statutes authorizes the Commissioner to impose a civil penalty upon M&G Mortgage in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation.
 

IV.  NOTICE OF INTENT TO REVOKE MORTGAGE CORRESPONDENT
LENDER LICENSE, NOTICE OF INTENT TO ISSUE ORDER TO CEASE AND
DESIST, NOTICE OF INTENT TO IMPOSE CIVIL PENALTY
AND NOTICE OF RIGHT TO HEARING

WHEREAS, the Commissioner has reason to believe that M&G Mortgage has engaged in acts or conduct which constitutes sufficient grounds for the Commissioner to revoke M&G Mortgage’s mortgage correspondent lender license in Connecticut pursuant to Section 36a-494(a)(1)(C) of the 2012 Supplement to the General Statutes and subsections (a) and (b) of Section 36a-51 of the 2012 Supplement to the General Statutes and forms a basis to issue an order to cease and desist against M&G Mortgage pursuant to Section 36a-494(b) of the 2012 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes and to impose a civil penalty upon M&G Mortgage pursuant to Section 36a-494(b) of the 2012 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes;
 
WHEREAS, the Commissioner has reason to believe that Grad has engaged in acts or conduct which forms a basis to issue an order to cease and desist against Grad pursuant to Section 36a-52(a) of the Connecticut General Statutes and to impose a civil penalty upon Grad pursuant to Section 36a-50(a) of the Connecticut General Statutes;
 
AND WHEREAS, the Commissioner has reason to believe that Polk has engaged in acts or conduct which forms a basis to issue an order to cease and desist against Polk pursuant to Section 36a-494(b) of the 2012 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes and to impose a civil penalty against Polk pursuant to Section 36a-494(b) of the 2012 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes.
 
NOW THEREFORE, notice is hereby given to M&G Mortgage that the Commissioner intends to REVOKE M&G Mortgage’s license to engage in the business of a mortgage correspondent lender in Connecticut, issue an order requiring M&G Mortgage to CEASE AND DESIST from violating the law cited herein, and impose a CIVIL PENALTY upon M&G Mortgage as set forth herein, subject to M&G Mortgage’s right to a hearing on the allegations set forth above.
 
FURTHER, notice is hereby given to Grad that the Commissioner intends to issue an order requiring Grad to CEASE AND DESIST from violating the law cited herein, and impose a CIVIL PENALTY upon Grad as set forth herein, subject to Grad’s right to a hearing on the allegations set forth above.
 
FURTHER, notice is hereby given to Polk that the Commissioner intends to issue an order requiring Polk to CEASE AND DESIST from violating the laws cited herein, and impose a CIVIL PENALTY upon Polk as set forth herein, subject to Polk’s right to a hearing on the allegations set forth above.
 
A hearing will be granted to each 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 each Respondent’s receipt of this Notice of Intent to Revoke Mortgage Correspondent Lender License, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing as set forth in subsections (a) and (b) of Section 36a-51 of the 2012 Supplement to the General Statutes and Sections 36a-52(a) and 36a-50(a) of the Connecticut General Statutes.  This Notice of Intent to Revoke Mortgage Correspondent Lender License, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty 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 any 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 August 9, 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 the Respondents fail to appear at the requested hearing.  At such hearing, Respondents 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 M&G Mortgage does not request a hearing within the time prescribed, the Commissioner will issue an order revoking M&G Mortgage’s license to engage in the business of a mortgage correspondent lender in Connecticut, issue an order that M&G Mortgage cease and desist from violating Section 36a-486(b)(1) of the Connecticut General Statutes, in effect prior to October 1, 2011, Section 36a-486(b)(1) of the 2012 Supplement to the General Statutes, Sections 36a-486(a), 36a-53a and 36a-496 of the Connecticut General Statutes, and may order a civil penalty in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation be imposed upon M&G Mortgage.
 
If Grad does not request a hearing within the time prescribed, the Commissioner will issue an order that Grad cease and desist from violating Section 36a-53a of the Connecticut General Statutes, and may order a civil penalty in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation be imposed upon Grad.
 
If Polk does not request a hearing within the time prescribed, the Commissioner will issue an order that Polk cease and desist from violating Section 36a-486(b)(1) of the Connecticut General Statutes, in effect prior to October 1, 2011, and Section 36a-486(b)(1) of the 2012 Supplement to the General Statutes, and may order a civil penalty in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation be imposed upon Polk.


So ordered at Hartford, Connecticut
this 5th of June 2012.                                  ________/s/_________
                                                               Howard F. Pitkin
                                                               Banking Commissioner


                                                              


Administrative Orders and Settlements