DOB: Fidelcap Corp. - CO

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IN THE MATTER OF:

FIDELCAP CORP.
d/b/a FIDELITY CAPITAL
NMLS # 6262

       ("Fidelity Capital")
   
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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, Fidelity Capital is a New York corporation 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, investigated 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, the activities of Fidelity Capital 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 Fidelity Capital, which Notice is incorporated herein by reference;
 
WHEREAS, the Commissioner alleged in the Notice that Fidelity Capital failed to timely file its Mortgage Call Report – Standard – Financial Condition report (2011) 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 Fidelity Capital (Certified Mail No. 70112000000247316789);
 
WHEREAS, on or about December 20, 2012, Fidelity Capital received the Notice, and on December 21, 2012, 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 Fidelity Capital now desire to resolve the matters alleged in the Notice and set forth herein;
 
WHEREAS, on February 11, 2012, Fidelity Capital otherwise filed required financial information by timely uploading a required Financial Statement for 2011 on the Nationwide Mortgage Licensing System and Registry (“NMLS”);
 
WHEREAS, Fidelity Capital represents to the Commissioner that it in good faith believed it had filed all required financial information, but admits that the MCR – Standard – Financial Condition (2011) described in the Notice and set forth herein was not filed on its due date;
 
WHEREAS, Fidelity Capital acknowledges that this Consent Order is a public record and is a reportable event for purposes of the regulatory disclosure questions on NMLS, as applicable;
 
WHEREAS, Fidelity Capital 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, Fidelity Capital 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, Fidelity Capital 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, Fidelity Capital, 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, Fidelity Capital, 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 Fidelity Capital, Fidelity Capital 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 Fidelity Capital, Fidelity Capital 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, Fidelity Capital 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 Fidelity Capital;
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 Fidelity Capital 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 Fidelity Capital 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 Fidelity Capital and reflected herein is subsequently discovered to be untrue;
4.
So long as this Consent Order is promptly disclosed by Fidelity Capital and its control persons on NMLS, as applicable, nothing in the issuance of this Consent Order shall adversely affect the ability of Fidelity Capital 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 21st day of June 2013.               ________/s/_________
                                                     Howard F. Pitkin
                                                     Banking Commissioner



I, Frank Audino, state on behalf of Fidelcap Corp. d/b/a Fidelity Capital, 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 Fidelcap Corp. d/b/a Fidelity Capital; that Fidelcap Corp. d/b/a Fidelity Capital agrees freely and without threat or coercion of any kind to comply with the sanction entered and terms and conditions ordered herein; and that Fidelcap Corp. d/b/a Fidelity Capital 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:  Frank Audino
                                                     Title:  President
                                                     Fidelcap Corp. d/b/a Fidelity Capital


                                                    
State of:  NY

County of:  Westchester


On this the 19 day of June 2013, before me, Marc DiTomaso, the undersigned officer, personally appeared Frank Audino who acknowledged himself/herself to be the President of Fidelcap Corp. d/b/a Fidelity Capital, a corporation, and that he/she as such ___________________, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself/herself as President.

In witness whereof I hereunto set my hand.


                                                       _________/s/_________
                                                       Notary Public  
                                                       Date Commission Expires:  March 20, 2014



 


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