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IN THE MATTER OF: RIGHT TRAC FINANCIAL ("Right Trac 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, inclusive, of the Connecticut General Statutes, “Mortgage Lenders, Correspondent Lenders, Brokers and Loan Originators”, and Sections 9 and 19 to 21, inclusive, of Public Act 09-209;
WHEREAS, Right Trac Financial is a corporation currently licensed as a mortgage correspondent lender under Part I of Chapter 668, Sections 36a-485 et seq. of the Connecticut General Statutes;
WHEREAS, in June 2009, 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 Right Trac Financial 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 Right Trac Financial employed or retained, during the period of December 2007 through March 2009, four (4) individuals as originators or mortgage loan originators without registering or licensing them, in violation of Sections 36a-486(b) and 36a-511(b) of the then applicable Connecticut General Statutes;
WHEREAS, the Commissioner believes that such allegations would support initiation of enforcement proceedings against Right Trac Financial, including proceedings to revoke Right Trac Financial’s license pursuant to Section 36a-494(a) of the Connecticut General Statutes, as amended by Public Act 09-209, and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, issue a cease and desist order against Right Trac Financial pursuant to Section 36a-494(b) of the Connecticut General Statutes, as amended by Public Act 09-209, 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 Right Trac Financial pursuant to Section 36a-494(b) of the Connecticut General Statutes, as amended, 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 Right Trac Financial acknowledge the possible consequences of formal administrative proceedings;
WHEREAS, Right Trac Financial agrees to voluntarily enter into this Settlement Agreement without admitting or denying any allegations set forth herein, and solely for the purposes of obviating the need for formal administrative proceedings concerning the allegations described above;
WHEREAS, Right Trac Financial herein represents to the Commissioner that the four (4) individuals alleged to be unregistered originators or unlicensed mortgage loan originators, in violation of Sections 36a-486(b) and 36a-511(b) of the then applicable Connecticut General Statutes, during the period of December 2007 through March 2009, are either currently licensed as mortgage loan originators with Right Trac Financial, or are no longer engaged in any mortgage-related activity with Right Trac Financial that would require such individuals to be so licensed under Part I of Chapter 668, Sections 36a-485 et seq. of the Connecticut General Statutes;
WHEREAS, Right Trac Financial 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 Right Trac Financial requires licensure from the Commissioner under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
WHEREAS, in connection with this settlement, Right Trac Financial was provided the option to pay a civil penalty in the amount of Four Thousand Dollars ($4,000) in settlement of the allegations contained herein;
WHEREAS, the State of Connecticut is a participant in the Nationwide Mortgage Licensing System and Registry (“NMLS&R”), jointly developed by the Conference of State Bank Supervisors (“CSBS”) and the American Association of Residential Mortgage Regulators to establish a unified and modern system of mortgage licensing and registration, and is committed to the success of NMLS&R;
WHEREAS, in connection with this settlement, Right Trac Financial was provided an alternative option to make a voluntary contribution in the amount of Four Thousand Dollars ($4,000) to the State Regulatory Registry LLC (“SRR”), a wholly-owned subsidiary of the CSBS, to support the NMLS&R;
WHEREAS, Right Trac Financial elected to make a voluntary contribution to SRR in lieu of a civil penalty;
AND WHEREAS, Right Trac Financial, 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 Right Trac Financial enter into this Settlement Agreement as follows:
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Right Trac Financial shall make voluntary contributions by cashier’s check, certified check or money order in the total amount of Four Thousand Dollars ($4,000) to SRR to support NMLS&R, in accordance with the following schedule:
$500 on or before January 29, 2010; an additional $500 on or before February 26, 2010; an additional $500 on or before March 31, 2010; an additional $500 on or before April 30, 2010; an additional $500 on or before May 31, 2010; an additional $500 on or before June 30, 2010; an additional $500 on or before July 30, 2010; and an additional $500 on or before August 31, 2010. |
| 2. | Upon entry of this Settlement Agreement, this matter will be resolved and the Commissioner will not take any future enforcement action against Right Trac Financial 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 Right Trac Financial based on the allegations contained herein if any representations made by Right Trac Financial in this Settlement Agreement are subsequently discovered to be untrue or if Right Trac Financial 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 Right Trac Financial 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 to apply for or obtain licensure of its mortgage loan originators 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 Right Trac Financial to enforce this Settlement Agreement if the Commissioner determines that Right Trac Financial 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 14th day of January 2010. ________/s/_________
Howard F. Pitkin
Banking Commissioner
I, Joe Petrowsky, state on behalf of Right Trac Financial Group, 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 Right Trac Financial Group, Inc.; that Right Trac Financial Group, Inc. agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that Right Trac Financial Group, Inc., voluntarily agrees to enter into this Settlement Agreement, expressly waiving any right to a hearing on the matters described herein.
By: ________/s/_________
Name:
Title:
Right Trac Financial Group, Inc.
State of: Connecticut
County of: Hartford
On this the 12 day of January 2010, before me, Christine A. Kurtzman, the undersigned officer, personally appeared Joe Petrowsky who acknowledged himself to be the President of Right Trac Financial Group, Inc., a corporation, 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 Joe Petrowsky.
In witness whereof I hereunto set my hand.
________/s/_________
Notary Public
Date Commission Expires: 4/30/2010