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")

   
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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 that 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, the Commissioner, through the Consumer Credit Division of the Department of Banking, investigated the activities of M&G Mortgage pursuant to the authority granted by Section 36a-17(a) of the 2012 Supplement to the General Statutes, as amended by Public Act 12-96, and Section 36a-498f of the Connecticut General Statutes, 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 December 17, 2012, as a result of the investigation, the Commissioner, acting pursuant to Sections 36a-494(b) of the 2012 Supplement to the General Statutes, as amended by Public Act 12-96, Section 36a-52(a) of the Connecticut General Statutes and Section 36a-50(a) of the Connecticut General Statutes, as amended by Public Act 12-96, 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 M&G Mortgage, which Notice is incorporated herein by reference;
 
WHEREAS, the Commissioner alleged in the Notice that M&G Mortgage failed to timely file its Standard MCR – Standard Condition – Financial Condition report that was due on March 30, 2012, in violation of Section 36a-534b(c)(3) of the 2012 Supplement to the General Statutes and/or Section 36a-534b(c)(3) of the 2012 Supplement to the General Statutes, as amended by Public Act 12-96, which such violation 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, as amended, and Section 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty pursuant to Section 36a-494(b) of the 2012 Supplement to the General Statutes, as amended, and Section 36a-50(a) of the Connecticut General Statutes, as amended;

WHEREAS, on December 17, 2012, the Notice was sent by certified mail, return receipt requested to M&G Mortgage (Certified Mail No. 70112000000247316826);
 
WHEREAS, on December 18, 2012, M&G Mortgage received the Notice and on December 21, 2012 requested a hearing, which such hearing is currently scheduled for February 26, 2013;
 
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 M&G Mortgage now desire to resolve the matters alleged in the Notice and set forth herein;
 
WHEREAS, M&G Mortgage admits that the report described in the Notice and set forth herein was not filed on its respective due date, 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, M&G 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, M&G Mortgage 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;
 
WHEREAS, M&G 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, M&G Mortgage, through its execution of this Consent Order, voluntarily agrees to waive any applicable 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, M&G 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 M&G Mortgage, M&G Mortgage 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 M&G Mortgage, M&G Mortgage shall have satisfactorily filed on NMLS all mortgage call reports required to date, expressly including the MCR – Standard – Financial Condition report for 2012, due ninety days from M&G Mortgage’s fiscal year end.  In the future, M&G Mortgage 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 its current, and any future license issued to M&G Mortgage;
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 M&G Mortgage based upon the allegation set forth in the Notice and contained herein; provided that issuance of this Consent Order is without prejudice to the right of the Commissioner to take enforcement action against M&G 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 M&G Mortgage and reflected herein is subsequently discovered to be untrue;
4. So long as this Consent Order is promptly disclosed by M&G Mortgage and its control persons on NMLS, as applicable, nothing in the issuance of this Consent Order shall adversely affect the ability of M&G 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 license are satisfied; and
5. This Consent Order shall become final when issued.


Issued at Hartford, Connecticut
this 1st day of May 2013.                  ________/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 sanction 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 30 day of April 2013, before me, Marylin Rosario, 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
                                                       Date Commission Expires:  2/28/2015


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