DOB: Bridgepoint Mortgage LLC - CO

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IN THE MATTER OF:

BRIDGEPOINT MORTGAGE LLC
NMLS # 1009871

       ("Bridgepoint 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, Bridgepoint Mortgage is a Pennsylvania 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 of the Department of Banking (“Department”), 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 Bridgepoint 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, on May 28, 2014, 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 Bridgepoint Mortgage, which Notice is incorporated herein by reference;
 
WHEREAS, the Commissioner alleged in the Notice that Bridgepoint Mortgage failed to file its mortgage call report (“MCR”) that was due on March 31, 2014 (“2013 Financial Condition”), in violation of Section 36a-534b(c)(3) of Connecticut General Statutes, which such violation forms 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 May 29, 2014, the Notice was sent by certified mail, return receipt requested, to  Bridgepoint Mortgage (Certified Mail Nos. 70121010000172646943 and 70121010000172646950);
 
WHEREAS, the Notice provided Bridgepoint Mortgage 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 Bridgepoint Mortgage 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 Bridgepoint Mortgage;
 
WHEREAS, on June 13, 2014, the Notice sent to Bridgepoint Mortgage (Certified mail no. 70121010000172646943) was returned to the Department marked “Return to Sender – Attempted – Not Known – Unable to Forward”;
 
WHEREAS, on June 20, 2014, the Notice sent to Bridgepoint Mortgage (Certified mail no. 70121010000172646950), was returned to the Department marked “Return to Sender – Vacant – Unable to Forward”;
 
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, notwithstanding the foregoing, the Commissioner and Bridgepoint Mortgage now desire to resolve the matters alleged in the Notice and set forth herein;
 
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, Bridgepoint Mortgage admits that the 2013 Financial Condition MCR described in the Notice and set forth herein was not filed on its due date;
 
WHEREAS, Bridgepoint Mortgage 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, Bridgepoint Mortgage voluntarily agrees to consent to the entry of the sanction imposed 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, Bridgepoint Mortgage 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, Bridgepoint Mortgage 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, Bridgepoint Mortgage, 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, Bridgepoint 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 Bridgepoint Mortgage, Bridgepoint 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 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 Bridgepoint Mortgage, Bridgepoint Mortgage shall have satisfactorily filed all MCRs required to date.  In the future, Bridgepoint 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 Bridgepoint Mortgage;
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 Bridgepoint Mortgage 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 Bridgepoint 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 Bridgepoint Mortgage and reflected herein is subsequently discovered to be untrue;
4.So long as this Consent Order is promptly disclosed by Bridgepoint Mortgage and its control persons on NMLS, as applicable, nothing in the issuance of this Consent Order shall adversely affect the ability of Bridgepoint 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
5.This Consent Order shall become final when issued.


Issued at Hartford, Connecticut
this 19th day of September 2014.     _______/s/_________
                                                     Howard F. Pitkin
                                                     Banking Commissioner


I, Doug Huhn, state on behalf of Bridgepoint 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 Bridgepoint Mortgage LLC; that Bridgepoint 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 Bridgepoint 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:  Doug Huhn
                                                  Title:  Owner
                                                  Bridgepoint Mortgage LLC

State of:  CT

County of:  Middlesex

On this the 12 day of September 2014, before me, Cheryl DeFosche Cox, the undersigned officer, personally appeared Doug Huhn who acknowledged himself/herself to be the Owner of Bridgepoint Mortgage LLC, a member managed/manager managed limited liability company, and that he/she as such Owner, 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 Owner.

In witness whereof I hereunto set my hand.


                                                       _________/s/_________
                                                       Notary Public  
                                                       Date Commission Expires:  June 30, 2017



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