DOB: Harbor Financial, LLC - CO

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IN THE MATTER OF:

HARBOR FINANCIAL, LLC     
NMLS # 112573

     ("Harbor Financial")

   
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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, Harbor Financial is a Connecticut limited liability company 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 (“Division”) of the Department of Banking (“Department”), investigated the activities of Harbor Financial pursuant to the authority granted by Sections 36a-17(a) and 36a-498f of the Connecticut General Statutes, 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 June 24, 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 Harbor Financial, which Notice is incorporated herein by reference;

WHEREAS, the Commissioner alleged in the Notice that Harbor Financial failed to file its MCR – Standard – Financial Condition report that was due on March 30, 2012, and its MCR – Standard – RMLA (Q4) that was due on February 14, 2013, and failed to timely file its MCR – Standard – RMLA (Q1) that was due on May 15, 2012, all in violation of Section 36a-534b(c)(3) of the Connecticut General Statutes;
 
WHEREAS, on June 25, 2013, the Notice was sent by certified mail, return receipt requested, to Harbor Financial (Certified Mail Nos. 71023050000216929935 and 71023050000216929942);
 
WHEREAS, the Notice provided Harbor Financial with the opportunity for a hearing, and stated that if a hearing was not requested within 14 days of its receipt, the Commissioner would issue an order that Harbor Financial cease and desist from violating Section 36a-534b(c)(3) of the Connecticut General Statutes, and may order a civil penalty in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation be imposed upon Harbor Financial;
 
WHEREAS, on or about July 13, 2013, the United States Postal Service posted the status of the Notice mailings as “Unclaimed”;
 
WHEREAS, on or about July 15, 2013, the Division contacted Harbor Financial, confirmed the Division had the correct address for the licensed office and provided Harbor Financial with a copy of the Notice and pertinent United States Postal Service tracking information via e-mail;
 
WHEREAS, on July 15, 2013, each Notice that had been mailed to Harbor Financial was returned to the Department marked “Return to Sender – Unclaimed”;
 
WHEREAS, Section 36a-52(a) of the Connecticut General Statutes provides, in pertinent part, that “[t]he notice shall be deemed received by the person on the earlier of the date of actual receipt or seven days after mailing or sending”;
 
WHEREAS, Section 36a-50(a)(1) of the Connecticut General Statutes provides, in pertinent part, that “[t]he notice shall be deemed received by the person on the earlier of the date of actual receipt or seven days after mailing or sending”;
 
WHEREAS, Section 36a-52(a) provides, in pertinent part, that “[i]f the person does not request a hearing within the time specified in the notice . . . the commissioner shall issue an order to cease and desist against the person”;
 
WHEREAS, Section 36a-50(a)(2) of the Connecticut General Statutes provides, in pertinent part, that “[i]f such person does not request a hearing within the time specified in the notice . . . the commissioner may . . . order that a civil penalty not exceeding one hundred thousand dollars per violation be imposed upon such person”;
 
WHEREAS, no request for a hearing has been received by the Commissioner;
 
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 Harbor Financial now desire to resolve the matters alleged in the Notice and set forth herein;
 
WHEREAS, Harbor Financial 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, Harbor Financial voluntarily agrees to consent to the entry of the sanction described below solely for the purpose of obviating the need for further formal administrative action concerning the allegations contained in the Notice and set forth herein;
 
WHEREAS, Harbor Financial 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, Harbor Financial, through its execution of this Consent Order, voluntarily agrees to waive any applicable procedural rights 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, Harbor Financial, 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 Harbor Financial, Harbor Financial shall request surrender of its mortgage broker license and Harbor Financial or any other company with Michael Stacy as a control person shall not be eligible to apply for licensure as a mortgage lender, mortgage correspondent lender or mortgage broker before May 1, 2014.


CONSENT ORDER

NOW THEREFORE, the Commissioner enters the following:

1. The Sanction set forth above be and is 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 Harbor Financial based upon the allegations contained herein; provided that issuance of this Consent Order is without prejudice to the right of the Commissioner to take enforcement action against Harbor Financial 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 Harbor Financial and reflected herein is subsequently discovered to be untrue;
3. So long as this Consent Order is promptly disclosed by Harbor Financial and its control persons on NMLS, as applicable, nothing in the issuance of this Consent Order shall adversely affect the ability of Harbor Financial or any other company with Michael Stacy as a control person 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 after May 1, 2014, 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 13th day of Nov 2013.               ________/s/_________
                                                     Howard F. Pitkin
                                                     Banking Commissioner



I, Michael Stacy, state on behalf of Harbor Financial, 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 Harbor Financial, LLC; that Harbor Financial, 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 Harbor Financial, 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:  Michael Stacy
                                                 Title:  President
                                                 Harbor Financial, LLC

State of:  CT

County of:  New Haven


On this the 8 day of Nov 2013, before me, Patricia Suraci, the undersigned officer, personally appeared Michael Stacy who acknowledged himself/herself to be the President of Harbor Financial, LLC, a member managed/manager managed limited liability company, and that he/she as such Mgt. Member, 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 Mgt. Member.

In witness whereof I hereunto set my hand.


                                                       _________/s/_________
                                                       Notary Public  
                                                       Date Commission Expires:  March 31, 2018 



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