DOB: Compass Mortgage, LLC - CO

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IN THE MATTER OF:

COMPASS MORTGAGE, LLC     
NMLS # 517460

     ("Compass 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, Compass Mortgage is a Connecticut limited liability company that is presently licensed to act as a mortgage broker under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes; 
 
WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking, conducted an investigation pursuant to the authority granted by Sections 36a-17(a) and 36a-498f of the Connecticut General Statutes into the activities of Compass Mortgage to determine if it had violated, was violating, or was about to violate the provisions of the Connecticut General Statutes within the jurisdiction of the Commissioner;

WHEREAS, on March 22, 2013, as a result of the investigation, the Commissioner, acting pursuant to Sections 36a-494(b), 36a-52(a) and 36a-50(a) of the Connecticut General Statutes, issued a 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 Compass Mortgage, which Notice is incorporated herein by reference;
 
WHEREAS, the Commissioner alleged in the Notice that Compass Mortgage failed to timely file its Mortgage Call Report (“MCR”) – Standard – Financial Condition report for 2011 that was due on March 30, 2012 and certain MCR quarterly reports which were due on May 15 and August 14, 2012, respectively, all in violation of Section 36a-534b(c)(3) of the 2102 Supplement to the General Statutes in effect prior to October 1, 2012, which such violations form the basis to issue an order to cease and desist pursuant to Sections 36a-494(b) and 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty pursuant to Sections 36a-494(b) and 36a-50(a) of the Connecticut General Statutes;
 
WHEREAS, on March 22, 2012, the Notice was sent by certified mail, return receipt requested, to Compass Mortgage (Certified Mail No. 70112000000247316802);
 
WHEREAS, on March 28, 2012, Compass Mortgage received the Notice;
 
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 Compass Mortgage now desire to resolve the matters alleged in the Notice;
 
WHEREAS, Compass Mortgage admits that it did not file the reports described in the Notice by their respective due dates and acknowledges that this Consent Order is a public record and is a reportable event for purposes of the regulatory disclosure questions on the Nationwide Mortgage Licensing System and Registry (“NMLS”), as applicable;
 
WHEREAS, Compass Mortgage 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 in the Notice and set forth herein;
 
WHEREAS, Compass 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, Compass Mortgage, through its execution of this Consent Order, voluntarily agrees to waive any applicable procedural rights, including Compass Mortgage’s right to a hearing as it pertains to the allegation contained in the Notice and set forth herein, and voluntarily waives any right to seek judicial review or otherwise challenge or contest the validity of this Consent Order.


CONSENT TO ENTRY OF SANCTION

WHEREAS, Compass 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 Compass Mortgage, Compass Mortgage shall request surrender of its mortgage broker license and Compass Mortgage or any other company with Douglas Payette as a control person shall not be eligible to apply for licensure as a mortgage lender, mortgage correspondent lender or mortgage broker before November 1, 2013.


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, this matter will be resolved and the Commissioner will not take any future enforcement action against Compass 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 Compass 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 Compass Mortgage and reflected herein is subsequently discovered to be untrue;
3. So long as this Consent Order is promptly disclosed by Compass Mortgage and its control persons on NMLS, as applicable, nothing in the issuance of this Consent Order shall adversely affect the ability of Compass Mortgage or any other company with Douglas Payette as a control person 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 after November 1, 2013, provided all applicable legal requirements for such license are satisfied; and
4. This Consent Order shall become final when issued.


Issued at Hartford, Connecticut
this 12th day of April 2013.               ________/s/_________
                                                     Howard F. Pitkin
                                                     Banking Commissioner



I, Douglas Payette, state on behalf of Compass Mortgage, 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 Compass Mortgage, LLC; that Compass Mortgage, 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 Compass Mortgage, LLC 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:  Douglas Payette
                                                 Title:  Owner
                                                 Compass Mortgage, LLC

State of:  CT

County of:  Middlesex


On this the 8 day of April 2013, before me, _______________________, the undersigned officer, personally appeared Douglas Payette, who acknowledged himself to be the sole member of Compass Mortgage, LLC, a limited liability company, and that he as such sole 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 as sole member.

In witness whereof I hereunto set my hand.


                                                       _________/s/_________
                                                       Notary Public  
                                                       Date Commission Expires:  Jan. 31, 2016 



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