DOB: Gen2 Mortgage Services LLC - CO

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IN THE MATTER OF:

GEN2 MORTGAGE SERVICES LLC
d/b/a GENERATION2 MORTGAGE
SERVICES
NMLS # 142998

       ("Generation2 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, Generation2 Mortgage is a Connecticut limited liability company that is currently licensed to act 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, 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 Generation2 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 Generation2 Mortgage, which Notice is incorporated herein by reference;
 
WHEREAS, the Commissioner alleged in the Notice that Generation2 Mortgage failed to timely file its mortgage call report 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 August 23, 2012 (“Consent Order”); and (3) a basis to revive allegations previously made by the Commissioner in the Consent Order relating to the failure to timely file a prior MCR.  Such 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 Generation2 Mortgage (Certified Mail No. 70121010000172646608);
 
WHEREAS, on April 24, 2014, Generation2 Mortgage received the Notice and on May 1, 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 Generation2 Mortgage now desire to resolve the matters alleged in the Notice and set forth herein;

WHEREAS, Generation2 Mortgage represents to the Commissioner that it in good faith believed it was filing required financial information in accordance with requirements, but admits that the 2013 Financial Condition MCR described in the Notice and set forth herein was not filed on its due date;
 
WHEREAS, Generation2 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, Generation2 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, Generation2 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, Generation2 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, Generation2 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, Generation2 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 Generation2 Mortgage, Generation2 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 Three Thousand Dollars ($3,000) 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 Generation2 Mortgage, Generation2 Mortgage shall have satisfactorily filed on NMLS all MCRs required to date.  In the future, Generation2 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 Generation2 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 Generation2 Mortgage based upon the allegations set forth in the Notice or contained herein; provided that issuance of this Consent Order is without prejudice to the right of the Commissioner to take enforcement action against Generation2 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 Generation2 Mortgage and reflected herein is subsequently discovered to be untrue.  It is expressly understood and agreed that the subsequent failure by Generation2 Mortgage to timely file any required MCR within the balance of the 2015 licensing period, or any required MCR in any of the next three (3) licensing periods during which time Generation2 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 Generation2 Mortgage in Connecticut;
4.Subject to the foregoing, and so long as this Consent Order is promptly disclosed by Generation2 Mortgage and its control persons on NMLS, as applicable, nothing in the issuance of this Consent Order shall adversely affect the ability of Generation2 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 31st day of March 2015.            _______/s/_________
                                                     Jorge L. Perez
                                                     Banking Commissioner Designate


I, Mark Jeamel, state on behalf of Gen2 Mortgage Services LLC d/b/a Generation2 Mortgage Services, 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 Gen2 Mortgage Services LLC d/b/a Generation2 Mortgage Services; that Gen2 Mortgage Services LLC d/b/a Generation2 Mortgage Services agrees freely and without threat or coercion of any kind to comply with the sanction entered and terms and conditions ordered herein; and that Gen2 Mortgage Services LLC d/b/a Generation2 Mortgage Services 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:  Mark Jeamel
                                                     Title:  President
                                                     Gen2 Mortgage Services LLC
                                                     d/b/a Generation2 Mortgage Services

State of:  CT

County of:  Hartford

On this the 23 day of March 2015, before me, Edward Morelli, the undersigned officer, personally appeared Mark Jeamel who acknowledged himself to be the Principal of Gen2 Mortgage Services LLC d/b/a Generation2 Mortgage Services, a member managed/manager managed limited liability company, and that he as such Principal, 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 Principal.

In witness whereof I hereunto set my hand.


                                                    _____________/s/_____________
                                                    Commissioner of the Superior Court



Administrative Orders and Settlements