DOB: Glastonbury Residential Mortgage, LLC. - CO

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IN THE MATTER OF:

GLASTONBURY RESIDENTIAL
MORTGAGE, LLC.
d/b/a GLASTONBURY
RESIDENTIAL MORTGAGE

NMLS # 886988

       ("Glastonbury Residential 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, Glastonbury Residential Mortgage is a Connecticut limited liability company that is currently licensed as a mortgage correspondent lender 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 Glastonbury Residential 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 9, 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 Glastonbury Residential Mortgage, which Notice is incorporated herein by reference;

WHEREAS, the Commissioner alleged in the Notice that Glastonbury Residential 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 12, 2014, the Notice was sent by certified mail, return receipt requested, to  Glastonbury Residential Mortgage (Certified Mail Nos. 70121010000172646783 and 70121010000172646790);
 
WHEREAS, on May 13, 2014, Glastonbury Residential Mortgage received the Notice, and on May 14, 2014, requested a hearing;
 
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 Glastonbury Residential Mortgage now desire to resolve the matters alleged in the Notice and set forth herein;
 
WHEREAS, Glastonbury Residential Mortgage admits that the 2013 Financial Condition MCR described in the Notice and set forth herein was not filed on its due date;

WHEREAS, Glastonbury Residential 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, Glastonbury Residential 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, Glastonbury Residential 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, Glastonbury Residential 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, Glastonbury Residential 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 Glastonbury Residential Mortgage, Glastonbury Residential Mortgage shall request surrender of its mortgage correspondent lender license and Glastonbury Residential Services or any other company with Elizabeth Ashley Scutnik as a control person shall not be eligible to apply for licensure as a mortgage lender, mortgage correspondent lender or mortgage broker before the date that is six (6) months from the date that the license surrender request is accepted on NMLS by the Commissioner.

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 Glastonbury Residential 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 Glastonbury Residential 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 Glastonbury Residential Mortgage and reflected herein is subsequently discovered to be untrue;
3.So long as this Consent Order is promptly disclosed by Glastonbury Residential Mortgage and its control persons on NMLS, as applicable, nothing in the issuance of this Consent Order shall adversely affect the ability of Glastonbury Residential Mortgage or any other company with Elizabeth Ashley Scutnik 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 the date that is six (6) months from the date that the license surrender request is accepted on NMLS by the Commissioner, 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 21st day of October 2014.          _______/s/_________
                                                     Howard F. Pitkin
                                                     Banking Commissioner


I, Elizabeth A. Scutnik, state on behalf of Glastonbury Residential Mortgage, LLC. d/b/a Glastonbury Residential 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 Glastonbury Residential Mortgage, LLC. d/b/a Glastonbury Residential Mortgage; that Glastonbury Residential Mortgage, LLC. d/b/a Glastonbury Residential 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 Glastonbury Residential Mortgage, LLC. d/b/a Glastonbury Residential 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:  Elizabeth A. Scutnik  
                                                  Title:  Managing Partner
                                                  Glastonbury Residential Mortgage, LLC.
                                                  d/b/a Glastonbury Residential Mortgage

State of:  Connecticut

County of:  Hartford


On this the 6 day of October 2014, before me, _________________________, the undersigned officer, personally appeared __________________________ who acknowledged himself/herself to be the Managing Partner of Glastonbury Residential Mortgage, LLC. d/b/a Glastonbury Residential Mortgage, a member managed/manager managed limited liability company, and that he/she as such Managing Partner, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the member managed/manager managed limited liability company by himself/herself as Managing Partner.

In witness whereof I hereunto set my hand.


                                                       _________/s/_________
                                                       Notary Public  
                                                       Date Commission Expires:  5/1/2019



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