DOB: MCM Holdings, Inc. - NOI Rev

* * * * * * * * * * * * * * * * * * * *

IN THE MATTER OF:

MCM HOLDINGS, INC.
d/b/a MCM HOLDINGS II, INC.
NMLS # 213236

    ("Respondent")

* * * * * * * * * * * * * * * * * * * *

*
*
*
*
*
*
*
*
*
*
*

NOTICE OF INTENT TO REVOKE
MORTGAGE LENDER LICENSE

AND

NOTICE OF RIGHT TO HEARING


I. LEGAL AUTHORITY AND JURISDICTION

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”.

Pursuant to the authority granted by Sections 36a-17 and 36a-498f of the Connecticut General Statutes, he Commissioner, through the Consumer Credit Division of the Department of Banking (“Division”), has investigated the activities of Respondent to determine if it continues to meet the minimum qualifications for licensure under the provisions of the Connecticut General Statutes within the jurisdiction of the Commissioner.

Section 36a-17(a) of the Connecticut General Statutes provides, in pertinent part, that:

The commissioner, in the commissioner’s discretion, may, subject to the provisions of section 36a-21 and the Freedom of Information Act, as defined in section 1-200, (1) make such public or private investigations or examinations within or outside this state, concerning any person subject to the jurisdiction of the commissioner, as the commissioner deems necessary to carry out the duties of the commissioner . . . .

Section 36a-498f(a) of the Connecticut General Statutes provides, in pertinent part, that:

In addition to any authority provided under this title, the Banking Commissioner shall have the authority to conduct investigations and examinations as follows:

(1)  For purposes of initial licensing, license renewal, license suspension, license conditioning, license revocation or termination, or general or specific inquiry or investigation to determine compliance with sections 36a-485 to 36a-498f, inclusive, 36a-534a and 36a-534b, the commissioner may access, receive and use any books, accounts, records, files, documents, information or evidence including, but not limited to:  (A) Criminal, civil and administrative history information; (B) personal history and experience information including independent credit reports obtained from a consumer reporting agency described in Section 603(p) of the federal Fair Credit Reporting Act, 15 USC 1681a; and (C) any other documents, information or evidence the commissioner deems relevant to the inquiry or investigation regardless of the location, possession, control or custody of such documents, information or evidence.

Subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes provide, in pertinent part, that:

(a)  The commissioner may . . . revoke. . . any license issued by the commissioner under any provision of the general statutes by sending a notice to the licensee by registered or certified mail, return receipt requested, or by any express delivery carrier that provides a dated delivery receipt. The notice shall be deemed received by the licensee on the earlier of the date of actual receipt or seven days after mailing or sending. Any such notice shall include: (1) A statement of the time, place, and nature of the hearing; (2) a statement of the legal authority and jurisdiction under which the hearing is to be held; (3) a reference to the particular sections of the general statutes, regulations, rules or orders involved; (4) a short and plain statement of the matters asserted; and (5) a statement indicating that the licensee may file a written request for a hearing on the matters asserted within fourteen days of receipt of the notice. . . .

(b)  If a hearing is requested within the time specified in the notice, the commissioner shall hold a hearing upon the matters asserted in the notice unless the licensee fails to appear at the hearing. After the hearing, the commissioner shall . . . revoke . . . the license for any reason set forth in the applicable licensing provisions of the general statutes if the commissioner finds sufficient grounds exist for such . . . revocation. . . .  If the licensee does not request a hearing within the time specified in the notice or fails to appear at the hearing, the commissioner shall . . .  revoke . . . the license. No such license shall be . . . revoked except in accordance with the provisions of chapter 54.

Section 4-182(c) of the Connecticut General Statutes provides, in pertinent part, that:

No revocation . . . of any license is lawful unless, prior to the institution of agency proceedings, the agency gave notice by mail to the licensee of facts or conduct which warrant the intended action and the specific provisions of the general statutes or of regulations adopted by the agency that authorize such intended action, and the licensee was given an opportunity to show compliance with all lawful requirements for the retention of the license. . . .


II.  MATTERS ASSERTED

1.Respondent is a Florida corporation with an office at 14100 Palmetto Frontage Road, Suite 300, Miami Lakes, Florida (“Main Office”).
2.Respondent is presently licensed by the Commissioner, through the Nationwide Mortgage Licensing System and Registry (“NMLS”), to engage in the business of making Connecticut residential mortgage loans at its Main Office under Part I of Chapter 668, Sections 36a-485 to 36a-534c, inclusive, of the Connecticut General Statutes.
3.On June 11, 2015, the individual who was designated as the qualified individual at the Main Office was no longer sponsored by Respondent.
4.
On June 12, 2015, the following deficiency was posted to Respondent’s NMLS account: “[i]t appears the currently recognized qualifying individual is no longer employed with the company.  Please amend the MU1 form to recognize a new qualifying individual and provide a work experience form for this individual . . . .  Please address this item by 6/26/2015. . .”.
5.On June 15, 2015, Respondent amended its MU1 Form to remove the individual described in paragraph 3 as the qualifying individual for the Main Office, but did not identify a new qualifying individual.
6.On June 30, 2015, the Division, on behalf of the Commissioner, sent Respondent a certified letter (certified mail no. 70091680000100720843) providing Respondent with the opportunity to show compliance with all lawful requirements for retention of its mortgage lender license in Connecticut (“Compliance Letter”).  The Compliance Letter specified that Respondent lacked a qualified individual and that the Commissioner would initiate an administrative action against the license if this department did not receive a sufficient written response to the Compliance Letter by July 14, 2015.  (Alternatively, the Compliance Letter also noted that Respondent might elect to request surrender of its license).
7.Respondent received the Compliance Letter on July 3, 2015.
8.On July 22, 2015, a Division examiner contacted Michael Camus, Respondent’s President and designated contact person on NMLS, and left a voicemail asking for a return phone call.
9.As of the date of this Notice, Respondent has not responded to the Division’s voicemail message.
10.As of the date of this Notice, no written response to the Compliance Letter has been received by the Division.
11.As of the date of this Notice, no individual has been designated on NMLS as a proposed qualifying individual for the Main Office.
12.As of the date of this Notice, no request to surrender the license has been filed on NMLS.


III.  STATUTORY BASIS FOR REVOCATION
OF MORTGAGE LENDER LICENSE

Section 36a-494(a)(1) of the Connecticut General Statutes, as amended by Public Act 15-235, provides, in pertinent part, that:

The commissioner may . . . revoke. . . any mortgage lender. . . license or take any other action, in accordance with the provisions of section 36a-51, for any reason which would be sufficient grounds for the commissioner to deny an application for such license under sections 36a-485 to 36a-498f, inclusive, 36a-534a and 36a-534b . . . .

Section 36a-489(a)(1) of the Connecticut General Statutes provides, in pertinent part, that:

The commissioner shall not issue an initial license for a mortgage lender . . . unless the commissioner, at a minimum, finds that:  (A) The applicant meets the requirements of subsection (a) of section 36a-488 . . . .  If the commissioner fails to make such findings, the commissioner shall not issue a license, and shall notify the applicant of the denial and the reasons for such denial. . . .

Section 36a-488 of the Connecticut General Statutes provides, in pertinent part, that:

(a)(1)  The commissioner shall not issue a mortgage lender license. . . to any person unless such person meets the following . . . experience requirements, . . . (B) a mortgage lender . . . shall have, at the main office for which the license is sought, a qualified individual . . . (i) who have supervisory authority over the lending or brokerage activities, (ii) who have at least three years’ experience in the mortgage business within the five years immediately preceding the date of the application for the license, (iii) who, effective April 1, 2010, have completed the prelicensing education requirement described in section 36a-489a and passed a written test that meets the test requirement described in section 36a-489a, and (iv) who, effective November 1, 2012, are licensed as a mortgage loan originator under section 36a-489.  As used in this subdivision, “experience in the mortgage business” means paid experience in the origination, processing or underwriting of residential mortgage loans, the marketing of such loans in the secondary market or in the supervision of such activities, or any other relevant experience as determined by the commissioner. . . .

(b)  . . . The applicant shall, at a minimum, furnish to the system information concerning . . . the qualified individual . . . including personal history and experience in a form prescribed by the system . . . .  The following supplementary information shall be filed directly with the commissioner:  . . . (2) evidence that the qualified individual . . . meets the experience required by subsection (a) of this section . . . .  For the purpose of this subsection, evidence of experience of the qualified individual . . . shall include:  (A) A statement specifying the duties and responsibilities of such person’s employment, the term of employment, including month and year, and the name, address and telephone number of a supervisor, employer or, if self-employed, a business reference; and (B) if required by the commissioner, copies of W-2 forms, 1099 tax forms or, if self-employed, 1120 corporate tax returns, signed letters from the employer on the employer’s letterhead verifying such person’s duties and responsibilities and term of employment including month and year, and if such person is unable to provide such letters, other proof satisfactory to the commissioner that such person meets the experience requirement.  The commissioner may conduct a criminal history records check of . . . the qualified individual . . . and require the applicant to submit the fingerprints of such persons and authorization of such persons for the system and the commissioner to obtain an independent credit report from a consumer reporting agency, as described in Section 603(p) of the Fair Credit Reporting Act, 15 USC 1681a, as part of the application.

Respondent’s failure to designate any qualified individual, as set forth in paragraphs 1 through 11, inclusive, of the Matters Asserted, would constitute sufficient grounds to deny a mortgage lender license under Sections 36a-489(a)(1) and 36a-488 of the Connecticut General Statutes, which constitutes sufficient grounds to revoke Respondent’s license to engage in the business of making residential mortgage loans in Connecticut for the 2015 licensing period under Section 36a-494(a)(1) of the Connecticut General Statutes, as amended, and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes. 

IV.  NOTICE OF INTENT TO REVOKE MORTGAGE LENDER
LICENSE AND NOTICE OF RIGHT TO HEARING

WHEREAS, Respondent’s failure to designate a qualified individual constitutes sufficient grounds for the Commissioner to revoke Respondent’s license to engage in the business of making residential mortgage loans in Connecticut for the 2015 licensing period under Section 36a-494(a)(1) of the Connecticut General Statues, as amended, and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes.

NOW THEREFORE, notice is hereby given to Respondent that the Commissioner intends to REVOKE Respondent’s license to engage in the business of making residential mortgage loans in Connecticut pursuant to Section 36a-494(a)(1) of the Connecticut General Statutes, as amended, and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, subject to Respondent’s right to a hearing on the allegations set forth above.

A hearing will be granted to Respondent if a written request for a hearing is received by the Department of Banking, Consumer Credit Division, 260 Constitution Plaza, Hartford, Connecticut 06103-1800 within fourteen (14) days following Respondent’s receipt of this Notice of Intent to Revoke Mortgage Lender License and Notice of Right to Hearing as set forth in Section 36a-50(a) of the Connecticut General Statutes.  This Notice of Intent to Revoke Mortgage Lender License and Notice of Right to Hearing shall be deemed received on the earlier of the date of actual receipt, or seven days after mailing or sending.  To request a hearing, complete and return the enclosed Appearance and Request for Hearing Form to the above address.  If Respondent will not be represented by an attorney at the hearing, please complete the Appearance and Request for Hearing Form as “pro se”.  Once a written request for a hearing is received, the Commissioner may issue a notification of hearing and designation of hearing officer that acknowledges receipt of a request for a hearing, designates a presiding officer and sets the date of the hearing in accordance with Section 4-177 of the Connecticut General Statutes and Section 36a-1-21 of the Regulations of Connecticut State Agencies.  If a hearing is requested, the hearing will be held on November 18, 2015 at 10 a.m., at the Department of Banking, 260 Constitution Plaza, Hartford, Connecticut.

The hearing will be held in accordance with the provisions of Chapter 54 of the Connecticut General Statutes, unless Respondent fails to appear at the requested hearing.  At such hearing, Respondent will have the right to appear and present evidence, rebuttal evidence and argument on all issues of fact and law to be considered by the Commissioner.

If Respondent does not request a hearing within the time prescribed or fails to appear at any such hearing, the allegations herein will be deemed admitted.  Accordingly, the Commissioner will issue an order revoking Respondent’s mortgage lender license in Connecticut.

Dated at Hartford, Connecticut
this 9th day of October 2015.             ________/s/_________
                                                      Jorge L. Perez
                                                      Banking Commissioner



CERTIFICATION

I hereby certify that on this 9th day of October 2015, I caused to be mailed by certified mail, return receipt requested, the foregoing Notice of Intent to Revoke Mortgage Broker License and Notice of Right to Hearing to MCM Holdings, Inc. d/b/a MCM Holdings II, Inc., Attention:  Michael Camus, President, 14100 Palmetto Frontage Road, Suite 300, Miami Lakes, Florida 33016, certified mail no. 70143490000235259640.

                                                    ________/s/_________
                                                    Amy Grillo
                                                    Secretary 


Administrative Orders and Settlements