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IN THE MATTER OF:

CANDOR MORTGAGE
CORPORATION

    ("Respondent")

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ORDER REVOKING MORTGAGE 
BROKER LICENSE

ORDER TO CEASE AND DESIST

AND

ORDER IMPOSING CIVIL PENALTY


I.  PRELIMINARY STATEMENT

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, the Commissioner, through the Consumer Credit Division of the Department of Banking, conducted an investigation of the activities of Respondent, pursuant to the authority granted by Section 36a-17(a) of the Connecticut General Statutes, to determine if Respondent had violated, was violating or was about to violate the provisions of the Connecticut General Statutes within the jurisdiction of the Commissioner;

WHEREAS, on December 13, 2010, the Commissioner, acting pursuant to Section 36a-492(c) of the 2010 Supplement to the General Statutes, Section 36a-52(b) of the Connecticut General Statutes, Sections 36a-494(a)(1) and 36a-494(a)(1)(C), subsections (a) and (b) of Section 36a-51 and Section 36a-494(b) of the 2010 Supplement to the General Statutes, and Sections 36a-52(a) and 36a-50(a) of the Connecticut General Statutes, issued a Notice of Automatic Suspension, Temporary Order to Cease and Desist, Notice of Intent to Revoke Mortgage Broker License, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (collectively “Notice”) against Respondent, which Notice is incorporated herein by reference;

WHEREAS, on December 14, 2010, the Notice was sent by registered mail, return receipt requested, to Respondent (Registered Mail No. RB028037495US);

WHEREAS, the Notice provided Respondent with the opportunity for a hearing and stated that if a hearing was not requested within 14 days of its receipt, the Commissioner would issue an order revoking Respondent’s license to act as a mortgage broker in Connecticut from 100 Round Hill Road, Kennett Square, Pennsylvania (“Kennett Square Office”), issue an order that Respondent cease and desist from violating Section 36a-492 of the 2010 Supplement to the General Statutes, and may order that a civil penalty not to exceed Two Thousand Five Hundred Dollars ($2,500) be imposed upon Respondent;

WHEREAS, on December 17, 2010, Respondent received the Notice and no request for a hearing has been received by the Commissioner;

WHEREAS, the Commissioner alleged in the Notice, with respect to the activity described therein, that Respondent’s failure to file the new form of surety bond in an appropriate amount with the Commissioner, as required by Section 36a-492 of the 2010 Supplement to the General Statutes, constitutes sufficient grounds for the Commissioner to deny an application for such license under Section 36a-489(a)(1)(D) of the 2010 Supplement to the General Statutes and constitutes a violation of Section 36a-492 of the 2010 Supplement to the General Statutes, both of which constitute grounds for the Commissioner to revoke Respondent’s license to act as a mortgage broker in Connecticut from the Kennett Square Office pursuant to Sections 36a-494(a)(1) and 36a-494(a)(1)(C) and subsections (a) and (b) of Section 36a-51 of the 2010 Supplement to the General Statutes.  Such violation also forms a basis to issue an order to cease and desist against Respondent pursuant to Section 36a-494(b) of the 2010 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes and to impose a civil penalty pursuant to Section 36a-494(b) of the 2010 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes;

WHEREAS, the Commissioner also alleged in the Notice, with respect to the activity described therein, that Respondent’s failure to maintain a surety bond that runs concurrently with the period of its mortgage broker license constitutes sufficient grounds for the Commissioner to deny an application for such license under Section 36a-489(a)(1)(D) of the 2010 Supplement to the General Statutes and constitutes a violation of Section 36a-492 of the 2010 Supplement to the General Statutes, both of which constitute sufficient grounds for the Commissioner to revoke Respondent’s license to act as a mortgage broker in Connecticut from the Kennett Square Office, pursuant to Sections 36a-494(a)(1) and 36a-494(a)(1)(C) and subsections (a) and (b) of Section 36a-51 of the 2010 Supplement to the General Statutes, and forms a basis to issue an order to cease and desist pursuant to Section 36a-494(b) of the 2010 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes;

WHEREAS, Section 36a-51(b) of the 2010 Supplement to the General Statutes provides, in pertinent part, that “[i]f the licensee does not request a hearing within the time specified in the notice . . . , the commissioner shall . . . revoke . . . the license.  No such license shall be . . . revoked except in accordance with the provisions of chapter 54”;

WHEREAS, Section 36a-52(a) of the Connecticut General Statutes provides, in pertinent part, that “[i]f the person does not request a hearing within the time specified in the notice . . . , the commissioner shall issue an order to cease and desist against the person.  No such order shall be issued except in accordance with the provisions of chapter 54”;

WHEREAS, Section 36a-50(a)(2) of the Connecticut General Statutes provides, in pertinent part, that “[i]f such person does not request a hearing within the time specified in the notice . . . the commissioner may . . . order that a civil penalty not exceeding one hundred thousand dollars per violation be imposed upon such person”;

WHEREAS, Section 36a-50(a)(3) of the Connecticut General Statutes provides, in pertinent part, that “[e]ach action undertaken by the commissioner under this subsection shall be in accordance with the provisions of chapter 54”;

AND WHEREAS, Section 36a-1-31(a) of the Regulations of Connecticut State Agencies provides, in pertinent part, that “[w]hen a party fails to request a hearing within the time specified in the notice, the allegations against the party may be deemed admitted.  Without further proceedings or notice to the party, the commissioner shall issue a final decision in accordance with section 4-180 of the Connecticut General Statutes and section 36a-1-52 of the Regulations of Connecticut State Agencies”.


II.  FINDINGS OF FACT AND CONCLUSIONS OF LAW

1.
The Commissioner finds that the matters asserted, as set forth in paragraphs 1 through 6, inclusive, of Section II of the Notice shall constitute findings of fact within the meaning of Section 4-180(c) of the Connecticut General Statutes, and that the conclusions as set forth in Section III of the Notice shall constitute conclusions of law within the meaning of Section 4-180(c) of the Connecticut General Statutes and Section 36a-1-52 of the Regulations of Connecticut State Agencies.
2.
The Commissioner finds that Respondent has engaged in acts or conduct which, pursuant to Sections 36a-494(a)(1) and 36a-494(a)(1)(C) and subsections (a) and (b) of Section 36a-51 of the 2010 Supplement to the General Statutes, constitutes sufficient grounds to revoke Respondent’s license to act as a mortgage broker in Connecticut from 100 Round Hill Road, Kennett Square, Pennsylvania.
3.
The Commissioner finds that Respondent has engaged in acts or conduct which, pursuant to Section 36a-494(b) of the 2010 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes, forms the basis to issue an order to cease and desist against Respondent.
4.
The Commissioner finds that Respondent has engaged in acts or conduct which, pursuant to Section 36a-494(b) of the 2010 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes, forms the basis to impose a civil penalty upon Respondent.
5.
The Commissioner finds that the Notice was given in compliance with subsections (a) and (b) of Section 36a-51 of the 2010 Supplement to the General Statutes, and Sections 36a-52(a), 36a-50(a), 4-177 and 4-182(c) of the Connecticut General Statutes.

III.  ORDER

Having read the record, I HEREBY ORDER, pursuant to Sections 36a-494(a)(1) and 36a-494(a)(1)(C), subsections (a) and (b) of Section 36a-51 and Section 36a-494(b) of the 2010 Supplement to the General Statutes and Sections 36a-52(a) and 36a-50(a) of the Connecticut General Statutes, that:

1.
The license of Candor Mortgage Corporation to act as a mortgage broker in Connecticut from 100 Round Hill Road, Kennett Square, Pennsylvania, be and is hereby REVOKED;
2.
Candor Mortgage Corporation CEASE AND DESIST from violating Section 36a-492 of the 2010 Supplement to the General Statutes;
3.
A CIVIL PENALTY of Two Thousand Five Hundred Dollars ($2,500) be imposed against Candor Mortgage Corporation to be remitted to the Department of Banking by cashier’s check, certified check or money order, made payable to “Treasurer, State of Connecticut”, no later than thirty (30) days from the date this Order is mailed; and
4.
This Order shall become effective when mailed.

Dated at Hartford, Connecticut
this 25th day of January 2011.                   ________/s/_________
                                                            Howard F. Pitkin
                                                            Banking Commissioner


This order was mailed by certified mail,
return receipt requested, to Respondent
on January 26, 2011.


Candor Mortgage Corporation        Certified Mail No. 70100290000274894975
Attn:  Thomas Moskey, President
100 Round Hill Road
Kennett Square, PA 19348


Administrative Orders and Settlements