DOB: Equity America Mortgage Services, Inc. - CO

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IN THE MATTER OF:

EQUITY AMERICA MORTGAGE
SERVICES, INC.
NMLS # 8780

       ("Equity America 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, Equity America Mortgage is a New Hampshire corporation that is currently licensed to act as 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, 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 Equity America 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 15, 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 Equity America Mortgage, which Notice is incorporated herein by reference;
 
WHEREAS, the Commissioner alleged in the Notice that Equity America 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 16, 2014, the Notice was sent by certified mail, return receipt requested, to  Equity America Mortgage (Certified Mail No. 70121010000172646844);
 
WHEREAS, on May 19, 2014, Equity America Mortgage received the Notice and on May 30, 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 Equity America Mortgage now desire to resolve the matters alleged in the Notice and set forth herein;
 
WHEREAS, Equity America Mortgage admits that the 2013 Financial Condition MCR described in the Notice and set forth herein was not filed on its due date;
 
WHEREAS, Equity America 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, Equity America 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 allegation contained in the Notice and set forth herein; 

WHEREAS, Equity America 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, Equity America 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 allegation 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, Equity America 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 Equity America Mortgage, Equity America Mortgage shall request surrender of its mortgage broker license and Equity America Mortgage or any other company with Edward Lanzoni 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 Equity America 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 Equity America 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 Equity America Mortgage and reflected herein is subsequently discovered to be untrue;
3.So long as this Consent Order is promptly disclosed by Equity America Mortgage and its control persons on NMLS, as applicable, nothing in the issuance of this Consent Order shall adversely affect the ability of Equity America 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, 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 30th day of October 2014.         _______/s/_________
                                                     Howard F. Pitkin
                                                     Banking Commissioner

I, Edward Lanzoni, state on behalf of Equity America Mortgage Services, Inc. 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 Equity America Mortgage Services, Inc.; that Equity America Mortgage Services, Inc., agrees freely and without threat or coercion of any kind to comply with the sanction entered and terms and conditions ordered herein; and that Equity America Mortgage Services, Inc., 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:  Edward Lanzoni
                                                  Title:  VP
                                                  Equity America Mortgage Services, Inc.

State of:  Connecticut

County of:  New Haven

On this the 30th day of September 2014, before me, Edward Lanzoni, the undersigned officer, personally appeared before me who acknowledged himself to be the Vice President of Equity America Mortgage Services, Inc., a corporation, and that he as such he is, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself as Vice President.

In witness whereof I hereunto set my hand.


                                                       _________/s/_________
                                                       Notary Public  
                                                       Date Commission Expires:  7-31-2019



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