DOB: M & G Mortgage Services Inc - CO

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IN THE MATTER OF:

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

JOHN GRAD
NMLS # 92042
("Grad")

     ("collectively, "Respondents")


   
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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, M&G Mortgage is a Connecticut corporation with its main office at 47 North Main Street, West Hartford, Connecticut.  M&G Mortgage is currently licensed as a mortgage correspondent lender under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;

WHEREAS, Grad is President of M&G Mortgage and is currently licensed as a mortgage loan originator in Connecticut;

WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking, investigated the activities of Respondents, pursuant to Section 36a-17 of the 2012 Supplement to the General Statutes and Section 36a-498f of the Connecticut General Statutes, to determine if they had violated, were violating or were about to violate the provisions of the Connecticut General Statutes within the jurisdiction of the Commissioner;

WHEREAS, as a result of such investigation, on June 5, 2012, the Commissioner, acting pursuant to Sections 36a-494(b) and 36a-494(a)(1)(C) of the 2012 Supplement to the General Statutes, subsections (a) and (b) of Section 36a-51 of the 2012 Supplement to the General Statutes and Sections 36a-50(a) and 36a-52(a) of the Connecticut General Statutes, issued a 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 (“Notice”) against Respondents, among others, which Notice is incorporated herein by reference;

WHEREAS, the Notice alleges that M&G Mortgage: (1) engaged the services of at least one mortgage loan originator who was not licensed, in 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; (2) engaged in the business of making residential mortgage loans in Connecticut from a branch office which was not licensed, in violation of Section 36a-486(a) of the Connecticut General Statutes; (3) made a representation to the Commissioner which 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; and (4) accepted applications or referrals of applicants from, or paid fees to, at least one mortgage loan originator who was not licensed, in violation of Section 36a-496 of the Connecticut General Statutes;

WHEREAS, the Notice alleges that Grad made a statement to the Commissioner which 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;

WHEREAS, on June 6, 2012, the Notice was sent by certified mail, return receipt requested, to M&G Mortgage (Certified Mail No. 70112000000247358253) and Grad (Certified Mail No. 70112000000247358260);

WHEREAS, on June 7, 2012, M&G Mortgage received the Notice;

WHEREAS, on June 18, 2012, the Notice send to Grad was received by the Department marked “Return to Sender, Unclaimed, Unable to Forward”;

WHEREAS, on June 11, 2012, M&G Mortgage and Grad requested a hearing, which is currently scheduled for a date to be determined;

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 Respondents now desire to resolve the matters alleged in the Notice and set forth herein with regard to Respondents;

WHEREAS, each Respondent voluntarily agrees to consent to the entry of the sanctions 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 allegations contained in the Notice and set forth herein;

WHEREAS, each Respondent acknowledges that this Consent Order is a public record and is a reportable event for purposes of regulatory disclosure questions on the Nationwide Mortgage Licensing System and Registry (“NMLS”);

WHEREAS, Respondents agree that the Notice may be used in construing the terms of this Consent Order and agree to the language of this Consent Order;
 
AND WHEREAS, Respondents, by their respective execution of this Consent Order, voluntarily agree to waive their procedural rights, including a right to hearing as it pertains to the allegations set forth in the Notice, and voluntarily waive their rights to seek judicial review or otherwise challenge or contest the validity of this Consent Order.


CONSENT TO ENTRY OF SANCTIONS

WHEREAS, Respondents, through their execution of this Consent Order, consent to the Commissioner’s entry of a Consent Order imposing the following sanctions:

1. No later than the date this Consent Order is executed by Respondents, Respondents 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 Twenty Thousand Dollars ($20,000) as a civil penalty;
2. Grad shall immediately cease and desist from making false or misleading statements to the Commissioner in violation of Section 36a-53a of the Connecticut General Statutes; and
3. M&G Mortgage shall immediately cease and desist from: (a) engaging the services of mortgage loan originators who are not licensed, in violation of Section 36a-486(b)(1) of the Connecticut General Statutes; (b) engaging in the business of making residential mortgage loans in Connecticut from a branch office which is not licensed, in violation of Section 36a-486(a) of the Connecticut General Statutes; (c) making false or misleading statements to the Commissioner in violation of Section 36a-53a of the Connecticut General Statutes; and (d) accepting applications or referrals of applicants from, or paying fees to mortgage loan originators who are not licensed, in violation of Section 36a-496 of the Connecticut General Statutes.


CONSENT ORDER

NOW THEREFORE, the Commissioner enters the following:

1. The Sanctions set forth above be and are 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 Respondents based upon the allegations contained in the Notice and set forth herein; provided that issuance of this Consent Order is without prejudice to the right of the Commissioner to take enforcement action against Respondents 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 Respondents and reflected herein is subsequently discovered to be untrue;
3. So long as this Consent Order is complied with and promptly disclosed by M&G Mortgage and Grad on NMLS, nothing in the issuance of this Consent Order shall adversely affect the ability of M&G Mortgage and Grad 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 legal requirements for such licensure or renewal licensure are satisfied; and
4.
This Consent Order shall become final when issued.
 


Issued at Hartford, Connecticut
this 30th day of November 2012.        ________/s/_________
                                                     Howard F. Pitkin
                                                     Banking Commissioner



I, John Grad, state on behalf of M & G Mortgage Services 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 M & G Mortgage Services Inc; that M & G Mortgage Services Inc agrees freely and without threat or coercion of any kind to comply with the sanctions entered and terms and conditions ordered herein; and that M & G Mortgage Services 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:  John Grad
                                                        Title:  President
                                                        M & G Mortgage Services Inc

State of:  Connecticut

County of:  Hartford


On this the 19th day of November 2012, before me, Lora Rossignol, the undersigned officer, personally appeared John Grad who acknowledged himself to be the President of M & G Mortgage Services Inc, a corporation, 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 corporation by himself as President.

In witness whereof I hereunto set my hand.


                                                       _________/s/_________
                                                       Notary Public  Lora Rossignol
                                                       Date Commission Expires:  October 31, 2016
 

I, John Grad, state that I have read the foregoing Consent Order; that I know and fully understand its contents; that I agree freely and without threat or coercion of any kind to comply with the sanctions entered and terms and conditions ordered herein; and that I voluntarily agree to enter into this Consent Order, expressly waiving the procedural rights set forth herein as to the matters described herein.


                                                       _________/s/_________
                                                       John Grad


State of:  Connecticut

County of:  Hartford


On this the 19th day of November 2012, before me, Lora Rossignol, the undersigned officer, personally appeared John Grad, known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument and acknowledged that he executed the same for the purposes therein contained.

In witness whereof I hereunto set my hand.



                                                      _________/s/_________
                                                      Notary Public  Lori Rossignol
                                                      Date Commission Expires:  October 31, 2016


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