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IN THE MATTER OF:
NEW ENGLAND RESIDENTIAL
NMLS # 815059
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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, New England is a Connecticut limited liability company that is currently licensed 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 New England 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 New England, which Notice is incorporated herein by reference;
WHEREAS, the Commissioner alleged in the Notice that New England failed to timely file its MCR – Standard – Financial Condition report for 2011 that was due on March 30, 2012, in violation of Section 36a-534b(c)(3) of the 2012 Supplement to the General Statutes in effect prior to October 1, 2012, and Section 36a-534b(c)(3) of Connecticut General Statutes, which such violation forms 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, 2013, the Notice was sent by certified mail, return receipt requested, to New England (Certified Mail No. 70110470000225729502);
WHEREAS, on March 25, 2013, New England received the Notice and on March 28, 2013, requested a hearing;
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 New England now desire to resolve the matters alleged in the Notice and set forth herein;
WHEREAS, New England admits that the reports described in the Notice and set forth herein were not filed on 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, New England 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, New England 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, New England 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, New England, 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, New England, 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 New England, New England 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.
NOW THEREFORE, the Commissioner enters the following:
||The Sanction set forth above be and is hereby entered;|
||No later than the date this Consent Order is executed by New England, New England shall have satisfactorily filed on NMLS all mortgage call reports required to date, expressly including the MCR – Standard – RMLA (Q1) due May 15, 2013. In the future, New England 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 New England;|
||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 New England 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 New England 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 New England and reflected herein is subsequently discovered to be untrue;|
||So long as this Consent Order is promptly disclosed by New England and its control persons on NMLS, as applicable, nothing in the issuance of this Consent Order shall adversely affect the ability of New England 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|
This Consent Order shall become final when issued.
Issued at Hartford, Connecticut
this 4th day of June 2013. ________/s/_________
Howard F. Pitkin
I, Michael Rousseau, state on behalf of New England Residential Finance, 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 New England Residential Finance, LLC; that New England Residential Finance, 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 New England Residential Finance, LLC voluntarily agrees to enter into this Consent Order, expressly waiving the procedural rights set forth herein as to the matters described herein.
Name: Michael Rousseau
Title: Managing Director
New England Residential Finance, LLC
State of: CT
County of: New Haven
On this the 17th day of May 2013, before me, Peter Kowalasky, the undersigned officer, personally appeared Michael Rousseau who acknowledged himself/herself to be the Managing Director of New England Residential Finance, LLC, a member managed/manager managed limited liability company, and that he/she as such stated, 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 Director.
In witness whereof I hereunto set my hand.
Date Commission Expires: 4/30/2015
Administrative Orders and Settlements