DOB: Gateway Funding Diversified Mortgage Services, L.P. - CO

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IN THE MATTER OF:

GATEWAY FUNDING DIVERSIFIED
MORTGAGE SERVICES, L. P.
d/b/a GATEWAY FUNDING
DIVERSIFIED MORTGAGE
SERVICES, LIMITED PARTNERSHIP
d/b/a ERATES MORTGAGE
NMLS # 1071

       ("Gateway Funding")

   
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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, Gateway Funding, is a Pennsylvania limited partnership that is currently licensed as a mortgage lender under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
 
WHEREAS, as the result of a February 10, 2015, investigation, the Commissioner alleges that Gateway Funding, changed its name specified on its most recent filing with the Nationwide Mortgage Licensing System and Registry (“NMLS”) and failed to file such change with NMLS at least 30 calendar days prior to such change and, in connection with such name change, failed to provide, directly to the commissioner, a bond rider or endorsement, or addendum, as applicable, to the surety bond on file with the Commissioner that reflects the new name, in violation of Section 36a-490(b) of the Connecticut General Statutes;

WHEREAS, the Commissioner believes that such allegation would support initiation of proceedings against Gateway Funding which proceedings would constitute a “contested case” within the meaning of Section 4-166(4) of the Connecticut General Statutes.  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, Gateway Funding, through its execution of this Consent Order, voluntarily agrees to waive its procedural rights, including a right to notice and an opportunity for hearing as it pertains to the allegation set forth herein, voluntarily agrees to consent to the entry of the sanction imposed below without admitting or denying any allegation contained herein and voluntarily waives its right to seek judicial review or otherwise challenge or contest the validity of this Consent Order;
 
WHEREAS, Gateway Funding acknowledges that this Consent Order is a public record and is a reportable event for purposes of NMLS, as applicable;

AND WHEREAS, Gateway Funding herein represents to the Commissioner that it has reviewed and updated its internal policies, procedures and controls to ensure that Gateway Funding will file any change it makes to its name or any address of any office specified on its most recent filing with NMLS at least thirty (30) calendar days prior to such change and, in connection with such change, Gateway Funding will provide, directly to the Commissioner, a bond rider or endorsement, or addendum, as applicable, to the surety bond on file with the Commissioner that reflects such change.


CONSENT TO ENTRY OF SANCTION

WHEREAS, Gateway Funding 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 Gateway Funding, Gateway Funding 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 Five Hundred Dollars ($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.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 Gateway Funding based upon the allegation contained herein; provided that issuance of this Consent Order is without prejudice to the right of the Commissioner to take enforcement action against Gateway Funding 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 Gateway Funding and reflected herein is subsequently discovered to be untrue;
3.So long as this Consent Order is promptly disclosed by Gateway Funding Gateway Funding and its control persons, as applicable, on NMLS, nothing in the issuance of this Consent Order shall adversely affect the ability of Gateway Funding 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, and for its mortgage loan originators to apply for or obtain licensure from 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 12th day of March 2015.           _______/s/_________
                                                     Bruce H. Adams
                                                     Acting Banking Commissioner


I, Bruno J. Pasceri, state on behalf of Gateway Funding Diversified Mortgage Services, L. P. d/b/a Gateway Funding Diversified Mortgage Services, Limited Partnership d/b/a eRates 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 Gateway Funding Diversified Mortgage Services, L. P. d/b/a Gateway Funding Diversified Mortgage Services, Limited Partnership d/b/a eRates Mortgage; that Gateway Funding Diversified Mortgage Services, L. P. d/b/a Gateway Funding Diversified Mortgage Services, Limited Partnership d/b/a eRates 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 Gateway Funding Diversified Mortgage Services, L. P. d/b/a Gateway Funding Diversified Mortgage Services, Limited Partnership d/b/a eRates Mortgage 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:  Bruno J. Pasceri
                                                     Title:  President and Chief Executive Officer
                                                     Gateway Funding Diversified Mortgage Services, L.P
                                                     d/b/a Gateway Funding Diversified Mortgage Services,
                                                     Limited Partnership d/b/a eRates Mortgage

State of:  Pennsylvania

County of:  Montgomery

On this the 5th day of March 2015, before me, Mary E. Pierson, the undersigned officer, personally appeared Bruno J. Pasceri who acknowledged himself to be the President and Chief Executive Officer of Gateway Funding Diversified Mortgage Services, L. P. d/b/a Gateway Funding Diversified Mortgage Services, Limited Partnership d/b/a eRates Mortgage, a limited partnership, and that he as such President and Chief Executive Officer, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the limited partnership by himself as President and Chief Executive Officer.

In witness whereof I hereunto set my hand.


                                                    _________/s/_________
                                                    Notary Public  
                                                    Date Commission Expires:  November 15, 2015



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