DOB: Residential Home Funding Corp. - CO

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IN THE MATTER OF:

RESIDENTIAL HOME
FUNDING CORP.
d/b/a RESIDENTIAL HOME
MORTGAGE CORP.
d/b/a CONSUMER EQUITY
d/b/a THE MORTGAGE CORNER
NMLS # 34973

      ("Residential Home Funding")

    

   
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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, Residential Home Funding is a New York corporation with its main office at 707 Westchester Avenue, Suite 305, White Plains, New York, that has been licensed as a mortgage correspondent lender in Connecticut on the Nationwide Mortgage Licensing System and Registry (“NMLS”) since August 14, 2008;

WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking, pursuant to the authority granted by Sections 36a-17(a) and 36a-498f of the Connecticut General Statutes, investigated the activities of Residential Home Funding 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 August 13, 2013, as a result of the investigation, the Commissioner, acting pursuant to Sections 36a-494(a)(1), 36a-494(a)(1)(C), subsections (a) and (b) of Section 36a-51, Sections 36a-52(a) and 36a-50(a) of the Connecticut General Statutes, issued a Notice of Intent to Revoke Mortgage Correspondent Lender License, 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 Residential Home Funding, which Notice is incorporated herein by reference;

WHEREAS, on August 14, 2013, the Notice was sent by certified mail, return receipt requested, to Residential Home Funding (Certified Mail Nos. 70121010000173171826 and 70020860000215459816);

WHEREAS, on August 16, 2013, Residential Home Funding received the Notice and no request for a hearing has been received by the Commissioner;

WHEREAS, the Commissioner alleged in the Notice that Residential Home Funding failed to timely provide the Commissioner a complete and accurate response to a July 31, 2012, Report of Examination (“ROE”) and a May 30, 2013 Compliance Letter (“Compliance Letter”), in violation of Section 36a-17(d) 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, the Commissioner and Residential Home Funding now desire to resolve the matters alleged in the Notice and set forth herein;

WHEREAS, on August 22, 2013, Residential Home Funding filed a complete and accurate response to the ROE and satisfactorily addressed all of the issues contained in the Compliance Letter;

WHEREAS, Residential Home Funding 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, Residential Home Funding voluntarily agrees to consent to the entry of the sanctions described below, without admitting or denying any allegation contained in the Notice and set forth herein and 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, Residential Home Funding 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, Residential Home Funding, 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 SANCTIONS

WHEREAS, Residential Home Funding, through its execution of this Consent Order, consents to the Commissioner’s entry of a Consent Order imposing the following sanctions:

1. Residential Home Funding shall immediately cease and desist from violating Section 36a-17(d) of the Connecticut General Statutes; and
2. No later than the date this Consent Order is executed by Residential Home Funding, Residential Home Funding 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 Sanctions set forth above be and are hereby entered;
2. 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 Residential Home Funding  based upon the allegations contained in the Notice and set forth herein; provided that issuance of this Consent Order is without prejudice to the right of the Commissioner to take enforcement action against Residential Home Funding 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 Residential Home Funding and reflected herein is subsequently discovered to be untrue;
3. So long as this Consent Order is promptly disclosed by Residential Home Funding and its control persons on NMLS, as applicable, nothing in the issuance of this Consent Order shall adversely affect the ability of Residential Home Funding 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
4. This Consent Order shall become final when issued.


Issued at Hartford, Connecticut
this 31st day of October 2013.           ________/s/_________
                                                     Howard F. Pitkin
                                                     Banking Commissioner



I, David Stein, state on behalf of Residential Home Funding Corp. d/b/a Residential Home Mortgage Corp. d/b/a Consumer Equity d/b/a The Mortgage Corner, 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 Residential Home Funding Corp. d/b/a Residential Home Mortgage Corp. d/b/a Consumer Equity d/b/a The Mortgage Corner; that Residential Home Funding Corp. d/b/a Residential Home Mortgage Corp. d/b/a Consumer Equity d/b/a The Mortgage Corner agrees freely and without threat or coercion of any kind to comply with the sanctions entered and terms and conditions ordered herein; and that Residential Home Funding Corp. d/b/a Residential Home Mortgage Corp. d/b/a Consumer Equity d/b/a The Mortgage Corner 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:  David Stein
                                                 Title:  COO
                                                 Residential Home Funding Corp.
                                                 d/b/a Residential Home Mortgage Corp.
                                                 d/b/a Consumer Equity
                                                 d/b/a The Mortgage Corner

State of:  New Jersey

County of:  Morris


 

On this the 24th day of October 2013, before me, Barbara J. Scalera, the undersigned officer, personally appeared David Stein, who acknowledged himself/herself to be the COO of Residential Home Funding Corp. d/b/a Residential Home Mortgage Corp. d/b/a Consumer Equity d/b/a The Mortgage Corner, a corporation, and that he/she as such COO, 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 COO.

In witness whereof I hereunto set my hand.


                                                       _________/s/_________
                                                       Notary Public  
                                                       Date Commission Expires:  Dec. 14, 2017 



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