DOB: Classic Mortgage LLC - CO

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IN THE MATTER OF:

CLASSIC MORTGAGE, LLC     
NMLS # 31149

     ("Classic 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, Classic Mortgage is a New Jersey limited liability company that has been licensed to engage in the business of a mortgage lender since 2000, and is presently so licensed for the 2013 licensing period, all 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 and an examination pursuant to Sections 36a-17(a) and 36a-498f of the Connecticut General Statutes into the activities of Classic 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, as a result of the investigation, the Commissioner alleged in a Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing issued on March 22, 2013, that Classic Mortgage failed to timely submit on the Nationwide Mortgage Licensing System and Registry (“NMLS”) its Mortgage Call Report (“MCR”) Standard–Financial Condition–2011 report 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 in violation of Section 36a-534b(c)(3) of the Connecticut General Statutes (“Notice”);
 
WHEREAS, on March 22, 2013, the Notice was sent by certified mail, return receipt requested, to Classic Mortgage (Certified Mail Nos. 70110470000225729465, 70110470000225729472 and 70121010000173171659);
 
WHEREAS, on March 25, 2013, Classic Mortgage received the Notice and on April 2, 2013, requested a hearing;
 
WHEREAS, as a result of the examination, which was conducted on September 24, 2012, the Commissioner herein further alleges that Classic Mortgage employed or retained, during the period of February 1 through February 21, 2012, one individual as a mortgage loan originator who was not licensed, in violation of Section 36a-486(b) of the 2012 Supplement to the General Statutes;
 
WHEREAS, the Commissioner believes that such additional allegation would support initiation of additional enforcement proceedings against Classic Mortgage, including proceedings to revoke Classic Mortgage’s license pursuant to Section 36a-494(a) and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, issue a cease and desist order pursuant to Sections 36a-494(b) and 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty of up to one hundred thousand dollars ($100,000) per violation pursuant to Sections 36a-494(b) and 36a-50(a) of the Connecticut General Statutes;
 
WHEREAS, initiation of such enforcement proceedings would constitute a “contested case” within the meaning of Section 4-166(2) of the Connecticut General Statutes;
 
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, Classic Mortgage admits that the MCR report described in the Notice and set forth herein was not filed on its due date;
 
WHEREAS, both the Commissioner and Classic Mortgage acknowledge the possible consequences of formal administrative proceedings, and Classic Mortgage voluntarily agrees to consent to the entry of the sanction described below, without admitting or denying the allegation set forth herein regarding its retention of an unlicensed mortgage loan originator, and solely for the purpose of obviating the need for further formal administrative proceedings concerning the both the allegation in the Notice and the additional allegation contained herein;
 
WHEREAS, Classic Mortgage 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, Classic Mortgage herein represents to the Commissioner that it has reviewed and updated its internal policies, procedures and controls to ensure the timely and accurate filing of 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, Classic Mortgage has now satisfactorily filed on NMLS all MCRs required to date, including the Q1 RMLA that was due on May 15, 2013;
 
WHEREAS, Classic Mortgage herein represents to the Commissioner and the Commissioner acknowledges that the individual alleged to be an unlicensed mortgage loan originator in violation of Section 36a-486(b) of the 2012 Supplement to the General Statutes, during the period of February 1 through February 21, 2012, is currently licensed as a mortgage loan originator under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
 
WHEREAS, Classic Mortgage herein further represents to the Commissioner that it has reviewed and updated its internal policies, procedures and controls for assessing whether an individual engaged in mortgage-related activity with Classic Mortgage requires licensure from the Commissioner under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes, and agrees that it will not engage the services of an individual as a mortgage loan originator in the future without first confirming that such individual is duly licensed;
 
WHEREAS, Classic Mortgage has otherwise satisfactorily responded to any items identified as a result of the examination as it relates to its mortgage lender license and has paid its examination fee;
 
AND WHEREAS, Classic Mortgage, through its execution of this Consent Order, voluntarily agrees to waive its procedural rights, including its right to a hearing as it pertains to the allegation in the Notice and including a right to notice and an opportunity for hearing as it pertains to the additional allegation 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, Classic 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 Classic Mortgage, Classic 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 Six Thousand Dollars ($6,000).


CONSENT ORDER

NOW THEREFORE, the Commissioner enters the following:

1. The Sanction set forth above be and is hereby entered;
2. In the future, Classic 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 Classic Mortgage;
3. Classic Mortgage shall not engage the services of an individual who is required to be licensed as a mortgage loan originator pursuant to Section 36a-486(b)(2) of the Connecticut General Statutes unless that individual is licensed in accordance with Section 36a-489 of the Connecticut General Statutes;
4. 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 Classic Mortgage based upon the allegation contained in the Notice and the additional allegation set forth herein; provided that issuance of this Consent Order is without prejudice to the right of the Commissioner to take enforcement action against Classic 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 Classic Mortgage and reflected herein is subsequently discovered to be untrue;
5. So long as this Consent Order is promptly disclosed by Classic Mortgage and its control persons on NMLS, as applicable, nothing in the issuance of this Consent Order shall adversely affect the ability of Classic 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
6. This Consent Order shall become final when issued.


Issued at Hartford, Connecticut
this 17th day of July 2013.                 ________/s/_________
                                                     Howard F. Pitkin
                                                     Banking Commissioner



I, Lawrence DeNike, state on behalf of Classic 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 Classic Mortgage LLC; that Classic 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 Classic 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:  Lawrence DeNike
                                                 Title:  President
                                                 Classic Mortgage, LLC

State of:  New Jersey

County of:  Bergen


On this the 12th day of July 2013, before me, Carol McGivney, the undersigned officer, personally appeared Lawrence DeNike who acknowledged himself/herself to be the President of Classic Mortgage LLC, a member managed/manager managed limited liability company, and that he/she as such President, 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 President.

In witness whereof I hereunto set my hand.


                                                       _________/s/_________
                                                       Notary Public  
                                                       Date Commission Expires:  1/18/2016 



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