DOB: On Deck Mortgage Services LLC. - CO

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IN THE MATTER OF:

ON DECK MORTGAGE
SERVICES LLC.
NMLS # 84623

       ("On Deck 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, On Deck Mortgage is a Connecticut limited liability company 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 On Deck 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 April 22, 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 On Deck Mortgage, which Notice is incorporated herein by reference;
 
WHEREAS, the Commissioner alleged in the Notice that On Deck Mortgage failed to file its mortgage call report (“MCR”) that was due on March 31, 2014 (“2013 Financial Condition”), which conduct constituted:  (1) a violation of Section 36a-534b(c)(3) of Connecticut General Statutes; (2) a violation of an order of the Commissioner contained in a Consent Order dated June 4, 2013 (“Consent Order”); and (3) a basis to revive allegations previously made by the Commissioner in a 2013 Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing that On Deck Mortgage had failed to timely file a prior MCR due on March 30, 2012, which allegation was admitted by On Deck Mortgage 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, on April 23, 2014, the Notice was sent by certified mail, return receipt requested, to  On Deck Mortgage (Certified Mail No. 70121010000172646585);
 
WHEREAS, on May 13, 2014, On Deck Mortgage received the Notice and requested a hearing;
 
WHEREAS, as the result of a subsequent investigation, the Commissioner further alleges that On Deck Mortgage did not maintain the tangible net worth required of mortgage broker licensees pursuant to Sections 36a-488(a) and 36a-489(a) of the Connecticut General Statutes  Such allegation would support initiation of additional enforcement proceedings against On Deck Mortgage, including but not limited to, proceedings to revoke On Deck Mortgage’s license pursuant to Section 36a-494(a) and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes;
 
WHEREAS, initiation of such enforcement proceedings would constitute a “contested case” within the meaning of Section 4-166(4) of the Connecticut General Statutes, as amended by Public Act 14-187;
 
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 On Deck Mortgage now desire to resolve the matters alleged in the Notice and set forth herein;
 
WHEREAS, On Deck Mortgage neither admits or denies that it was maintaining the required tangible net worth, and has filed information with the Commissioner sufficient to establish that it presently meets tangible net worth requirements;
 
WHEREAS, On Deck Mortgage admits that the 2013 Financial Condition MCR described in the Notice and set forth herein was not filed on its due date and has provided the Commissioner with information pertaining to extenuating circumstances;
 
WHEREAS, On Deck 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, On Deck 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, On Deck 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, On Deck 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, On Deck 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 MCR allegation contained in the Notice and set forth herein, and, including a right to notice and a hearing as it pertains to the tangible net worth allegation 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, On Deck 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 On Deck Mortgage, On Deck 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 in consideration of the MCR violation.

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 On Deck Mortgage, On Deck Mortgage shall have satisfactorily filed on NMLS all mortgage call reports required to date.  In the future, On Deck Mortgage shall maintain required tangible net worth and 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 On Deck 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 On Deck 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 On Deck 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 On Deck Mortgage and reflected herein is subsequently discovered to be untrue.  It is expressly understood and agreed that the subsequent failure by On Deck Mortgage to timely file any required MCR within the balance of the 2014 licensing period, or any required MCR in any of the next three (3) licensing periods during which time On Deck Mortgage is licensed, may, in addition to any other remedy available to the Commissioner, form a basis for the Commissioner to revoke or refuse to renew the license of On Deck Mortgage in Connecticut;
4.Subject to the foregoing, and so long as this Consent Order is promptly disclosed by On Deck Mortgage and its control persons on NMLS, as applicable, nothing in the issuance of this Consent Order shall adversely affect the ability of On Deck 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 one (1) year from the date the surrender request is accepted by the Commissioner on NMLS, provided all applicable legal requirements for such license, including but not limited to, tangible net worth requirements are satisfied; and
5.This Consent Order shall become final when issued.


Issued at Hartford, Connecticut
this 23rd day of December 2014.      _______/s/_________
                                                     Howard F. Pitkin
                                                     Banking Commissioner


I, Richard Ondek, state on behalf of On Deck Mortgage Services 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 On Deck Mortgage Services LLC.; that On Deck Mortgage Services 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 On Deck Mortgage Services 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:  Richard Ondek
                                                  Title:  President
                                                  On Deck Mortgage Services LLC.

State of:  CT

County of:  New Haven

On this the 16th day of December 2014, before me, Sharon M. Recchia, the undersigned officer, personally appeared Richard Ondek who acknowledged himself to be the President of On Deck Mortgage Services LLC., a member managed/manager managed limited liability company, and that he as such President, 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 as President.

In witness whereof I hereunto set my hand.


                                                       _________/s/_________
                                                       Notary Public  
                                                       Date Commission Expires:  2-28-2016



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