DOB: O'Connor Music Company, Inc. - CO

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IN THE MATTER OF:

O'CONNOR MUSIC
COMPANY, INC
d/b/a STEPHENS MORTGAGE
     
NMLS # 140611

     ("O'Connor Music")

   
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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, O’Connor Music 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 O’Connor Music 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 O’Connor Music, which Notice is incorporated herein by reference;
 
WHEREAS, the Commissioner alleged in the Notice that O’Connor Music failed to timely file its MCR – Standard – Financial Condition report for 2011 that was due on March 30, 2012, and a quarterly mortgage call 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 22, 2013, the Notice was sent by certified mail, return receipt requested, to O’Connor Music (Certified Mail No. 70112000000247319483);
 
WHEREAS, on March 26, 2013, O’Connor Music received the Notice;
 
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 O’Connor Music now desire to resolve the matters alleged in the Notice and set forth herein;
 
WHEREAS, O’Connor Music 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, O’Connor Music 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, O’Connor Music 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, O’Connor Music 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, O’Connor Music, 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, O’Connor Music, 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 O’Connor Music, O’Connor Music 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 O’Connor Music, O’Connor Music 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, O’Connor Music 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 O’Connor Music; 
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 O’Connor Music 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 O’Connor Music 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 O’Connor Music and reflected herein is subsequently discovered to be untrue;
4. So long as this Consent Order is promptly disclosed by O’Connor Music and its control persons on NMLS, as applicable, nothing in the issuance of this Consent Order shall adversely affect the ability of O’Connor Music 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, Stephen Gagnon, state on behalf of O’Connor Music Company, Inc d/b/a Stephens Mortgage 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 O’Connor Music Company, Inc d/b/a Stephens Mortgage; that O’Connor Music Company, Inc d/b/a Stephens Mortgage, agrees freely and without threat or coercion of any kind to comply with the sanction entered and terms and conditions ordered herein; and that O’Connor Music Company, Inc d/b/a Stephens Mortgage, 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:  Stephen Gagnon
                                                 Title:  Manager
                                                 O'Connor Music Company, Inc
                                                 d/b/a Stephens Mortgage

State of:  Connecticut

County of:  Windham


On this the 12th day of July 2013, before me, Paul M. Smith, the undersigned officer, personally appeared Stephen Gagnon who acknowledged himself/herself to be the Manager of O’Connor Music Company, Inc d/b/a Stephens Mortgage, a corporation, and that he/she as such Manager, 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 Manager.

In witness whereof I hereunto set my hand.


                                                       _________/s/_________
                                                       Notary Public  
                                                       Date Commission Expires:  Mar. 31, 2017 



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