DOB: First Liberty Mortgage Company - CO

* * * * * * * * * * * * * * * * * * * *

IN THE MATTER OF:

FIRST LIBERTY MORTGAGE
COMPANY, LLC
NMLS # 22429

  ("First Liberty")

* * * * * * * * * * * * * * * * * * * *

*
*
*
*
*
*
*
*
*
*
*

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, First Liberty is a Connecticut limited liability company with an office at 180 West Main Street, Clinton, Connecticut, and 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 December 27, 2011, First Liberty requested renewal of its mortgage broker license on the Nationwide Mortgage Licensing System and Registry (“NMLS”) for the January 1 through December 31, 2012 licensing period, which application is currently pending;
 
WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking (“Division”), pursuant to the authority granted by Section 36a-17(a) of the 2012 Supplement to the General Statutes and Section 36a-498f of the Connecticut General Statutes, investigated the activities of First Liberty to determine if it continues to meet the minimum standards for licensure set forth in Part I of Chapter 668, Sections 36a-485 et seq. of the Connecticut General Statutes;
 
WHEREAS, on April 17, 2012, the Commissioner, through the Division, pursuant to the authority granted by Section 36a-17(a) of the 2012 Supplement to the General Statutes and Section 36a-498f of the Connecticut General Statutes, conducted an examination of First Liberty 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 the investigation and the examination, the Commissioner alleges that First Liberty failed to file on NMLS its second, third and fourth quarterly standard mortgage call reports for 2011 until May 22, 2012, and failed to file on NMLS the financial condition section for 2011 in the standard mortgage call report, and its first quarterly standard mortgage call report for 2012, all in violation of Section 36a-534b(c)(3) of the 2012 Supplement to the General Statutes;
 
WHEREAS, First Liberty admits that it has not filed the reports described in the foregoing paragraph;
 
WHEREAS, as a result of the examination, the Commissioner has sufficient information to determine that First Liberty has, as of the date of the examination, maintained the statutorily required tangible net worth and the statutorily required penal sum for its surety bond;
 
WHEREAS, the Commissioner believes that such allegation would support initiation of enforcement proceedings against First Liberty, including proceedings to revoke and refuse to renew First Liberty’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 2012 Supplement to the General Statutes, issue a cease and desist order against First Liberty 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 of up to one hundred thousand dollars ($100,000) per violation upon First Liberty 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, 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 First Liberty acknowledge the possible consequences of formal administrative proceedings, and First Liberty voluntarily agrees to consent to the entry of the sanction described below solely for the purpose of obviating the need for further formal administrative proceedings concerning the allegation contained herein;
 
WHEREAS, First Liberty acknowledges that this Consent Order is a public record required to be disclosed in response to regulatory disclosure questions on NMLS, as applicable;
 
WHEREAS, First Liberty herein represents to the Commissioner that it has reviewed and updated its internal policies, procedures and controls for timely and accurately filing required reports with the Commissioner through NMLS as required or as otherwise permitted under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
 
AND WHEREAS, First Liberty, 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, First Liberty 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 First Liberty, First Liberty 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 Two Thousand Five Hundred Dollars ($2,500) 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. No later than the date this Consent Order is executed by First Liberty, First Liberty shall have satisfactorily filed on NMLS the financial condition section of the standard mortgage call report for 2011, and its first quarter standard mortgage call report for 2012.  First Liberty shall timely and accurately file all required reports on NMLS or as otherwise permitted under Part I of Chapter 668 of the Connecticut General Statutes in connection with in connection with its current, and any future, license issued to First Liberty;
3. No later than the date this Consent Order is executed by First Liberty, First Liberty 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 Six Hundred Eighty Dollars ($680) in satisfaction of assessed examination fees for the April 2012 examination;
4.
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 First Liberty 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 First Liberty 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 First Liberty and reflected herein is subsequently discovered to be untrue;
5. So long as this Consent Order is promptly disclosed by First Liberty and its control persons on NMLS, as applicable, nothing in the issuance of this Consent Order shall adversely affect the ability of First Liberty 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 license are satisfied; and
6.
This Consent Order shall become final when issued.

 

Dated at Hartford, Connecticut
this 19th day of June 2012.                ________/s/_________
                                                     Howard F. Pitkin
                                                     Banking Commissioner


I, Richard O’Bymachow, state on behalf of First Liberty Mortgage Company, LLC, 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 First Liberty Mortgage Company, LLC; that First Liberty Mortgage Company, LLC agrees freely and without threat or coercion of any kind to comply with the sanction entered and terms and conditions ordered herein; and that First Liberty Mortgage Company, LLC agrees to enter into this Consent Order, expressly waiving the procedural rights set forth herein as to the matters described herein.                                            


                                            By:  ________/s/_________
                                                   Name:  Richard O'Bymachow
                                                   Title:  Managing Member
                                                   First Liberty Mortgage Company, LLC

                                                   

State of:  Connecticut

County of:  Middlesex


On this the 14 day of June 2012, before me, Deborah Burns, the undersigned officer, personally appeared Richard O’Bymachow who acknowledged himself/herself to be the Managing Member of First Liberty Mortgage Company, LLC, a member managed/manager managed limited liability company, and that he/she as such Managing Member, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the limited liability company by himself/herself as Managing Member.

In witness whereof I hereunto set my hand.


                                         _____________________
                                         Notary Public
                                         Date Commission Expires:


Administrative Orders and Settlements