DOB: C.U. Members Mortgage Corporation - CD-CP

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IN THE MATTER OF:

C.U. MEMBERS MORTGAGE
CORPORATION
NMLS # 65128

    ("Respondent"

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ORDER TO CEASE AND DESIST

AND

ORDER IMPOSING CIVIL PENALTY


I.  PRELIMINARY STATEMENT

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, the Commissioner, through the Consumer Credit Division of the Department of Banking, conducted an investigation of the activities of Respondent, 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 March 14, 2014, 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 Respondent, which Notice is incorporated herein by reference;
 
WHEREAS, on March 17, 2014, the Notice was sent by certified mail, return receipt requested, to Respondent (Certified Mail No. 70121010000173173325);
 
WHEREAS, the Notice provided Respondent with the opportunity for a hearing, and stated that if a hearing was not requested by Respondent within 14 days of Respondent’s receipt, the Commissioner would issue an order that Respondent cease and desist from violating both Section 36a-534b(c)(3) of the Connecticut General Statutes and an order of the Commissioner, and that the Commissioner may order a civil penalty in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation be imposed upon Respondent;
 
WHEREAS, on March 19, 2014, Respondent received the Notice, and no request for a hearing was received by the Commissioner;
 
WHEREAS, the Commissioner alleged in the Notice, with respect to the activity described therein, that Respondent failed to file a mortgage call report (“MCR”) that was due on February 14, 2014 (“Q4”).  The Commissioner alleged that such failure to file the Q4 MCR on the date that it was due constituted:  (1) a violation of Section 36a-534b(c)(3) of the Connecticut General Statutes; (2) a violation of an order of the Commissioner contained in a Consent Order dated March 28, 2013 (“Consent Order”); and (3) a basis to revive allegations previously made by the Commissioner in a 2012 Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing that Respondent had failed to file numerous other MCRs, which allegations were admitted by Respondent in connection with the Consent Order.  All of the foregoing violations form the basis to issue an order to cease and desist pursuant to Sections 36a-494(b) and/or 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty pursuant to Sections 36a-494(b) and/or 36a-50(a) of the Connecticut General Statutes;
 
WHEREAS, Section 36a-52(a) of the Connecticut General Statutes provides, in pertinent part, that “[i]f the person does not request a hearing within the time specified in the notice or fails to appear at the hearing, the commissioner shall issue an order to cease and desist against the person.  No such order shall be issued except in accordance with the provisions of chapter 54”;
 
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 or fails to appear at the hearing, the commissioner may, as the facts require, order that a civil penalty not exceeding one hundred thousand dollars per violation be imposed upon such person”;
 
WHEREAS, Section 36a-50(a)(3) of the Connecticut General Statutes provides that “[e]ach action undertaken by the commissioner under this subsection shall be in accordance with the provisions of chapter 54”;
 
AND WHEREAS, Section 36a-1-31(a) of the Regulations of Connecticut State Agencies provides, in pertinent part, that “[w]hen a party fails to request a hearing within the time specified in the notice, the allegations against the party may be deemed admitted.  Without further proceedings or notice to the party, the commissioner shall issue a final decision in accordance with section 4-180 of the Connecticut General Statutes and section 36a-1-52 of the Regulations of Connecticut State Agencies”.


II.  FINDINGS OF FACT AND CONCLUSIONS OF LAW

1.
The Commissioner finds that the matters asserted, as set forth in paragraphs 1 through 11, inclusive, of Section II of the Notice, shall constitute findings of fact within the meaning of Section 4-180(c) of the 2014 Supplement to the General Statutes, and that the conclusions, as set forth in Section III of the Notice, shall constitute conclusions of law within the meaning of Section 4-180(c) of the 2014 Supplement to the General Statutes and Section 36a-1-52 of the Regulations of Connecticut State Agencies.
2.
The Commissioner finds that Respondent has engaged in acts or conduct which, pursuant to Sections 36a-494(b) and/or 36a-52(a) of the Connecticut General Statutes, forms the basis to issue an order to cease and desist against Respondent, and, pursuant to Sections 36a-494(b) and/or 36a-50(a) of the Connecticut General Statutes, forms the basis to impose a civil penalty upon Respondent.
3.
The Commissioner finds that the Notice was given in compliance with Section 36a-52(a), subsections (a) and (c) of Section 36a-50 and Section 4-177 of the Connecticut General Statutes.


III.  ORDER

Having read the record, I HEREBY ORDER, pursuant to Sections 36a-494(b), 36a-52(a) and 36a-50(a) of the Connecticut General Statutes that:

1.
C.U. Members Mortgage Corporation CEASE AND DESIST from violating Section 36a-534b(c)(3) of the Connecticut General Statutes;
2.
C.U. Members Mortgage Corporation CEASE AND DESIST from violating the Consent Order;
3.A CIVIL PENALTY of Three Thousand Five Hundred Dollars ($3,500) be imposed upon C.U. Members Mortgage Corporation, to be remitted to the Department of Banking by cashier’s check, certified check or money order, made payable to “Treasurer, State of Connecticut”, no later than thirty (30) days from the date this Order is mailed; and
4.
This Order shall become effective when mailed.

Dated at Hartford, Connecticut
this 7th day of April 2014.             

 ________/s/_________
 Howard F. Pitkin
 Banking Commissioner

This Order was sent by certified mail,
return receipt requested, to Respondent
on April 8, 2014.


C.U. Members Mortgage Corporation           Certified Mail No. 70121010000173173417
Attention:  Dorothy Owens, President
287 Tyler Street
East Haven, Connecticut 06512


 


Administrative Orders and Settlements