DOB: Vanderbilt Mortgage and Finance - CO

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IN THE MATTER OF:

VANDERBILT MORTGAGE
AND FINANCE, INC.
NMLS # 1561

       ("Vanderbilt
")
   
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  CONSENT ORDER        


WHEREAS, Vanderbilt is a Tennessee corporation with an office located at 500 Alcoa Trail, Maryville, Tennessee (“Main Office”), that is not currently licensed as a mortgage lender under Part I of Chapter 668, Sections 36a-485, et seq., of the Connecticut General Statutes, or as a mortgage servicer under Part VII of Chapter 669, Sections 36a-715, et seq., or as a sales finance company under Part II of Chapter 668, Sections 36a-535, et seq., of the Connecticut General Statutes, or otherwise currently licensed for any activity within the jurisdiction of the Commissioner;

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”; Part VII of Chapter 669, Sections 36a-715 to 36a-719l, inclusive, of the Connecticut General Statutes, “Mortgage Servicing”; and Part II of Chapter 668, Sections 36a-535 to 36a-546, inclusive, of the Connecticut General Statutes, “Finance Companies”;

WHEREAS, on May 5, 2015, Vanderbilt applied for a mortgage lender license in Connecticut on the Nationwide Mortgage Licensing System and Registry (“NMLS”), which application is currently pending;

WHEREAS, on June 17, 2015, Vanderbilt separately applied for a mortgage servicer license in Connecticut on NMLS, which application is also currently pending (hereinafter, together with the May 5, 2015, application, the “Applications”);

WHEREAS, in reviewing the Applications, the Commissioner, through the Consumer Credit Division of the Department of Banking, conducted an investigation pursuant to Sections 36a-17 and 36a-498f of the Connecticut General Statutes into the activities of Vanderbilt 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, and if it meets the minimum standards to obtain the mortgage lender and mortgage servicer licenses applied for in the Applications;

WHEREAS, as a result of such investigation, the Commissioner alleges that Vanderbilt acted as a mortgage servicer in Connecticut from its Main Office without a license, in violation of Section 36a-718 of the Connecticut General Statutes, and separately engaged in the business of a sales finance company in Connecticut without a license, in violation of Section 36a-536 of the Connecticut General Statutes;
 
WHEREAS, the Commissioner believes that such allegations would support initiation of enforcement proceedings against Vanderbilt, including proceedings to issue a cease and desist order against Vanderbilt pursuant to Sections 36a-719j(b), 36a-543(b) and 36a-52(a) of the Connecticut General Statutes and impose a civil penalty of up to one hundred thousand dollars ($100,000) per violation upon Vanderbilt pursuant to Sections 36a-719j(b), 36a-543(d) and 36a-50(a) 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;

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 Vanderbilt acknowledge the possible consequences of formal administrative proceedings, and Vanderbilt voluntarily agrees to consent to the entry of the sanctions imposed below without admitting any allegation set forth herein and solely for the purpose of obviating the need for formal administrative proceedings concerning the allegations set forth herein;

WHEREAS, Vanderbilt specifically assures the Commissioner that the violations described herein shall not occur in the future;

WHEREAS, Vanderbilt represents that it does not, and will not, engage in any activity under the jurisdiction of the Commissioner without the requisite license;

WHEREAS, Vanderbilt specifically represents to the Commissioner that it does not currently act as a sales finance company in Connecticut, and will not without the requisite license;

WHEREAS, Vanderbilt acknowledges that this Consent Order is a public record and is a reportable event for purposes of the regulatory disclosure questions on NMLS, as applicable;

AND WHEREAS, Vanderbilt, through its execution of this Consent Order, voluntarily agrees to waive its procedural rights, including a right to a notice and an opportunity for a hearing as it pertains to the allegations 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 SANCTIONS

WHEREAS, Vanderbilt, through its execution of this Consent Order, consents to the Commissioner’s entry of a Consent Order imposing the following sanctions:

1. No later than the date this Consent Order is executed by Vanderbilt, it 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 Thirty-Five Thousand Dollars ($35,000) as a civil penalty; and
2. No later than the date this Consent Order is executed by Vanderbilt, it 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 Two Hundred Dollars ($3,200) as back licensing fees;
3. Vanderbilt shall not act as a mortgage servicer in Connecticut without a license, in violation of Section 36a-718 of the Connecticut General Statutes;
4. Vanderbilt shall not act as a mortgage lender in Connecticut without a license, in violation of Section 36a-486 of the Connecticut General Statutes; and
5. Vanderbilt shall not engage in the business of a sales finance company in Connecticut without a license, in violation of Section 36a-536 of the Connecticut General Statutes.

CONSENT ORDER

NOW THEREFORE, the Commissioner enters the following:

1. The Sanctions set forth above be and are 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 Vanderbilt based upon the allegations set forth herein; provided that issuance of this Consent Order is without prejudice to the right of the Commissioner to take enforcement action against Vanderbilt 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 Vanderbilt and reflected herein is subsequently discovered to be untrue;
3. So long as this Consent Order is promptly disclosed by Vanderbilt and its control persons on NMLS, as applicable, nothing in the issuance of this Consent Order shall adversely affect the ability of Vanderbilt to apply for or obtain licenses or renewal licenses under Part I of Chapter 668, Sections 36a-485, et seq., Part VII of Chapter 669, Sections 36a-715, et seq., and Part II of Chapter 668, Sections 36a-535 et seq., of the Connecticut General Statutes, provided all applicable legal requirements for such licenses are satisfied; and
4. This Consent Order shall become final when issued.


Issued at Hartford, Connecticut
this 24th day of November 2015.                _______/s/_________
                                                            Jorge L. Perez
                                                            Banking Commissioner


I, Amber W. Krupacs, state on behalf of Vanderbilt Mortgage and Finance, 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 Vanderbilt Mortgage and Finance, Inc.; that Vanderbilt Mortgage and Finance, Inc., agrees freely and without threat or coercion of any kind to comply with the sanctions entered herein; and that Vanderbilt Mortgage and Finance, Inc., voluntarily agrees to enter into this Consent Order, expressly waiving the procedural rights set forth herein as to the matters described herein.

                                                         ________/s/___________
                                                         Name:  Amber W. Krupacs
                                                         Title:  Secretary
                                                         Vanderbilt Mortgage and Finance, Inc.

State of: TN

County of:  Blount

On this the 13th day of November 2015, before me, Brittany Ford, the undersigned officer, personally appeared Amber Krupacs who acknowledged himself/herself to be the Secretary of Vanderbilt Mortgage and Finance, Inc., a corporation, and that he/she as such Secretary, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself/herself as Secretary.

 In witness whereof I hereunto set my hand.


                                                         _________/s/_________
                                                         Notary Public  
                                                         Date Commission Expires:  10/23/2019



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