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IN THE MATTER OF: M & W FINANCIAL ("M & W Financial") |
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SETTLEMENT AGREEMENT |
WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Part I of Chapter 668, Sections 36a-485 to 36a-534c of the Connecticut General Statutes, “Mortgage Lenders, Correspondent Lenders, Brokers and Loan Originators”;
WHEREAS, M & W Financial is a New Jersey corporation with an office at 42 West Allendale Avenue, Allendale, New Jersey (“Allendale Office”);
WHEREAS, the Allendale Office is licensed by the Commissioner as a mortgage correspondent lender;
WHEREAS, on May 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) and subsections (a) and (b) of Section 36a-51 of the 2010 Supplement to the General Statutes, Section 36a-494(b) of the 2010 Supplement to the General Statutes and Section 36a-52 of the Connecticut General Statutes, issued a Notice of Automatic Suspension, Temporary Order to Cease and Desist, Notice of Intent to Revoke and Refuse to Renew Mortgage Correspondent Lender License, Notice of Intent to Issue Order to Cease and Desist and Notice of Right to Hearing (collectively, “Notice”) against M & W Financial, alleging that M & W Financial failed to maintain a surety bond that runs concurrent with the period of its mortgage correspondent lender license, in violation of Connecticut law, which Notice is herein incorporated by reference;
WHEREAS, on June 2, 2010, M & W Financial received the Notice and contacted the Department of Banking (“Department”);
WHEREAS, M & W Financial, by e-mail to the Department dated June 24, 2010, which e-mail is herein incorporated by reference, represents to the Commissioner that it attempted to surrender its Allendale Office license on the Nationwide Mortgage Licensing System (“NMLS”) at the end of March 2010, but was unable to surrender such license because it had already been automatically suspended on March 27, 2010;
WHEREAS, M & W Financial further represents to the Commissioner that it conducted no business under its Connecticut license without a surety bond;
WHEREAS, M & W Financial’s June 24, 2010, e-mail requests that the Commissioner consider allowing M & W Financial to surrender its license as it claims it intended to do in March 2010;
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 agreed settlement, unless precluded by law;
WHEREAS, M & W Financial agrees to voluntarily enter into this Settlement Agreement without admitting or denying any allegations contained in the Notice and set forth herein, and solely for the purpose of obviating the need for formal administrative proceedings to resolve this matter;
AND WHEREAS, M & W Financial, through its execution of this Settlement Agreement, voluntarily agrees to waive any rights to a hearing upon the allegations contained in the Notice and the Settlement Agreement, and waives the right to seek judicial review or otherwise challenge or contest the validity of this Settlement Agreement.
NOW THEREFORE, the Commissioner and M & W Financial enter into this Settlement Agreement as follows:
| 1. | Upon entry of this Settlement Agreement, the Commissioner shall mark M & W Financial’s mortgage correspondent lender license as “Ordered Surrendered” on NMLS, whereupon such license shall be deemed surrendered; |
| 2. | Upon entry of this Settlement Agreement, this matter will be resolved and the Commissioner will not take any future enforcement action against M & W Financial based upon the allegations contained in the Notice and set forth herein; provided that entry of this Settlement Agreement is without prejudice to the right of the Commissioner to take enforcement action against M & W Financial if any representations made by M & W Financial are subsequently discovered to be untrue; and |
| 3. | Nothing in the entry of this Settlement Agreement shall adversely affect the ability of M & W Financial to apply for or obtain a license under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes. |
IN WITNESS WHEREOF, the parties hereto have caused this Settlement Agreement to be executed by each of them or their duly authorized representatives on the dates hereinafter subscribed.
Dated at Hartford, Connecticut
this 8th day of September 2010. ________/s/_________
Howard F. Pitkin
Banking Commissioner
I, William T. Grath, state on behalf of M & W Financial Services, Inc., that I have read the foregoing Settlement Agreement; that I know and fully understand its contents; that I am authorized to execute this Settlement Agreement on behalf of M & W Financial Services, Inc; that M & W Financial Services, Inc., agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that M & W Financial Services, Inc., voluntarily agrees to enter into this Settlement Agreement, expressly waiving any right to a hearing on the matters described herein.
By: ________/s/_________
Name: William T. Grath
Title: President
M & W Financial Services, Inc.
State of: New Jersey
County of: Bergen
On this the 2nd day of Sept 2010, before me, Donna Haraka, the undersigned officer, personally appeared William T. Grath who acknowledged himself to be the President of M & W Financial Services, Inc., a corporation, and that he as such President, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself as President.
In witness whereof I hereunto set my hand.
________/s/_________
Notary Public
Date Commission Expires: 10/26/2010