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IN THE MATTER OF: RAPID RESPONSE MORTGAGE ("Rapid Response") |
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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, inclusive, of the Connecticut General Statutes, “Mortgage Lenders, Correspondent Lenders, Brokers and Loan Originators”;
WHEREAS, Rapid Response is a Connecticut limited liability company that is licensed as a mortgage broker under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
WHEREAS, on January 14, 2010, the Commissioner, through the Consumer Credit Division of the Department of Banking, conducted an examination pursuant to Section 36a-17 of the Connecticut General Statutes into the activities of Rapid Response 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, as a result of such examination, the Commissioner alleges that Rapid Response employed or retained, during the period of August 13, 2008 through April 1, 2009, two (2) individuals as mortgage loan originators without licensing them in violation of Section 36a-486(b) of the applicable Connecticut General Statutes;
WHEREAS, the Commissioner believes that such allegations would support initiation of enforcement proceedings against Rapid Response, including proceedings to revoke Rapid Response’s license pursuant to Section 36a-494(a) and subsections (a) and (b) of Section 36a-51 of the 2010 Supplement to the General Statutes, issue a cease and desist order against Rapid Response 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 impose a civil penalty of up to one hundred thousand dollars ($100,000) per violation on Rapid Response 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, 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, both the Commissioner and Rapid Response acknowledge the possible consequences of formal administrative proceedings;
WHEREAS, Rapid Response agrees to voluntarily enter into this Settlement Agreement without admitting or denying any allegations set forth herein, and solely for the purpose of obviating the need for formal administrative proceedings concerning the allegations described above;
WHEREAS, Rapid Response herein represents to the Commissioner that the two (2) individuals alleged to be unlicensed mortgage loan originators in violation of Section 36a-486(b) of the Connecticut General Statutes during the period of August 13, 2008 through April 1, 2009, are duly licensed as mortgage loan originators or are no longer engaged in any mortgage-related activity with Rapid Response that would prohibit Rapid Response from engaging the services of such individuals without licensure as mortgage loan originators under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
WHEREAS, Rapid Response herein represents to the Commissioner that it has reviewed and updated its internal policies, procedures and controls for assessing whether an individual engaged in mortgage-related activity with Rapid Response requires licensure from the Commissioner under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
AND WHEREAS, Rapid Response, through its execution of this Settlement Agreement, voluntarily agrees to waive any rights to a hearing upon the allegations contained in this 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 Rapid Response enter into this Settlement Agreement as follows:
| 1. | No later than the date this Settlement Agreement is executed by Rapid Response, Rapid Response 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 Two Thousand Dollars ($2,000) as a civil penalty; |
| 2. | Upon entry of this Settlement Agreement, this matter will be resolved and the Commissioner will not take any future enforcement action against Rapid Response based upon the allegations contained herein; provided that entry of this Settlement Agreement is without prejudice to the right of the Commissioner to take enforcement action against Rapid Response based on the allegations contained herein if any representations made by Rapid Response in this Settlement Agreement are subsequently discovered to be untrue or if Rapid Response is not fully complying with any term or condition stated herein; |
| 3. | Nothing in the entry of this Settlement Agreement shall adversely affect the ability of Rapid Response 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, and for its mortgage loan originators to apply for or obtain licensure from the Commissioner; |
| 4. | Notwithstanding paragraph 2 herein, execution of this Settlement Agreement is without prejudice to the right of the Commissioner to take enforcement action against Rapid Response to enforce this Settlement Agreement if the Commissioner determines that Rapid Response is not fully complying with any term or condition stated herein. For purposes of this paragraph, a violation of this Settlement Agreement shall be deemed to be a violation of an order of the Commissioner. |
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 30th day of August 2010.
________/s/_________
Howard F. Pitkin
Banking Commissioner
I, James McCall, state on behalf of Rapid Response Mortgage Services, LLC, 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 Rapid Response Mortgage Services, LLC; that Rapid Response Mortgage Services, LLC agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that Rapid Response Mortgage Services, LLC voluntarily agrees to enter into this Settlement Agreement, expressly waiving any right to a hearing on the matters described herein.
By: ________/s/_________
Name: James McCall
Title: Owner
Rapid Response Mortgage LLC
State of: Connecticut
County of: New Haven
On this the 25th day of August 2010, before me, Kristin Caposella, the undersigned officer, personally appeared James McCall who acknowledged himself to be the Owner of Rapid Response Mortgage Services, LLC, a member managed/manager managed limited liability company, that he, as such Owner, 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 as Owner.
In witness whereof I hereunto set my hand.
________/s/_________
Notary Public
Date Commission Expires: 12/31/13