DOB: Priority Mortgage Group, Inc. - CO

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IN THE MATTER OF:

PRIORITY MORTGAGE
GROUP, INC.     
NMLS # 4040

     ("Priority Mortgage Group")

   
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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, Priority Mortgage Group is a Connecticut 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, 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 Priority Mortgage Group 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 27, 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 Priority Mortgage Group, which Notice is incorporated herein by reference;

WHEREAS, the Commissioner alleged in the Notice that Priority Mortgage Group failed to timely file its MCR – Standard – Financial Condition report for 2011 that was due on March 30, 2012, and a quarterly MCR report that was due on August 14, 2012, all 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 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 28, 2013, the Notice was sent by certified mail, return receipt requested, to Priority Mortgage Group (Certified Mail No. 70112000000247316093);
 
WHEREAS, on April 1, 2013, Priority Mortgage Group received the Notice and on April 3, 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 Priority Mortgage Group now desire to resolve the matters alleged in the Notice and set forth herein;
 
WHEREAS, on May 10, 2012, Priority Mortgage Group filed certain financial information by uploading a required Financial Statement for 2011 on the Nationwide Mortgage Licensing System and Registry (“NMLS”);
 
WHEREAS, Priority Mortgage Group 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 respective due date, and admits that the quarterly MCR described in the Notice and set forth herein was also not filed on its respective due date;
 
WHEREAS, Priority Mortgage Group has satisfactorily filed on NMLS all MCRs required up through and including the Q1 – RMLA that was due May 15, 2013;
 
WHEREAS, Priority Mortgage Group 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, Priority Mortgage Group 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 allegations contained in the Notice and set forth herein;
 
WHEREAS, Priority Mortgage Group 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, Priority Mortgage Group 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, Priority Mortgage Group, 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 allegations 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, Priority Mortgage Group, 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 Priority Mortgage Group, Priority Mortgage Group 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. In the future, Priority Mortgage Group 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 Priority Mortgage Group;
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 Priority Mortgage Group based upon the allegations 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 Priority Mortgage Group 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 Priority Mortgage Group and reflected herein is subsequently discovered to be untrue;
4. So long as this Consent Order is promptly disclosed by Priority Mortgage Group and its control persons on NMLS, as applicable, nothing in the issuance of this Consent Order shall adversely affect the ability of Priority Mortgage Group 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 July 2013.                  ________/s/_________
                                                     Howard F. Pitkin
                                                     Banking Commissioner



I, Gregory N. Papst, state on behalf of Priority Mortgage Group, 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 Priority Mortgage Group, Inc.; that Priority Mortgage Group, 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 Priority Mortgage Group, 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:  Gregory N. Papst  
                                                 Title:  President
                                                 Priority Mortgage Group, Inc.

State of:  Connecticut

County of:  Fairfield


On this the 19 day of June 2013, before me, Lori Vano, the undersigned officer, personally appeared Gregory Papst who acknowledged himself to be the President of Priority Mortgage Group, 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:  March 31, 2018 



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