Regulatory Alerts2011-09-30
Added · Updated
Bulletin 2484 - Sept. 30, 2011
The Connecticut Department of Banking imposed a $2,000 civil penalty on On Deck Mortgage Services LLC for employing unlicensed mortgage loan originators between May 2009 and November 2010. Additionally, the Commissioner ordered The Lloyd Ward Group, PC to cease and desist from unlicensed debt negotiation activities, pay a $500,000 civil penalty, and repay $2,668.74 in non-compliant fees to a Connecticut resident. These enforcement actions address violations of Sections 36a-486(b) and 36a-671(b) of the Connecticut General Statutes.
State of Connecticut Department of Banking
The Department of Banking News Bulletin Bulletin # 2484
Week Ending September 30, 2011
This bulletin constitutes the only official notification you will receive from this office concerning any of the following applications. Any observations you may have are solicited. Any comments should be in writing to Howard F. Pitkin, Banking Commissioner, at the Connecticut Department of Banking, 260 Constitution Plaza, Hartford, CT 06103-1800 or via E-mail . Written comments will be considered only if they are received within ten days from the date of this bulletin.
CONSUMER CREDIT DIVISION ACTIVITY Consent Order
On September 21, 2011, the Commissioner entered into a Consent Order with On Deck Mortgage Services LLC (“On Deck Mortgage”), Trumbull, Connecticut. The Consent Order was based on an examination by the Consumer Credit Division. As a result of such examination, the Commissioner alleged that On Deck Mortgage employed or retained, during the period of May 14, 2009 through November 8, 2010, two (2) individuals as mortgage loan originators who were not licensed, in violation of Section 36a-486(b) of the Connecticut General Statutes. As part of the Consent Order, On Deck Mortgage was ordered to pay $2,000 as a civil penalty.
Order to Cease and Desist, Order of Repayment of Fees and Order Imposing Civil Penalty
On September 9, 2011, the Commissioner issued an Order to Cease and Desist, Order of Repayment of Fees and Order Imposing Civil Penalty (“Order”) In the Matter of: The Lloyd Ward Group, PC d/b/a Lloyd Ward Group II a/k/a The Lloyd Ward Group PC2 (“Respondent”), Dallas, Texas. The basis of the Order was that Respondent engaged in debt negotiation in this state without obtaining the required license, in violation of Section 36a-671(b) of the Connecticut General Statutes, and collected fees under terms which did not comply with Section 36a-671b(b) of the Connecticut General Statutes and the Schedule of Maximum Fees established by the Commissioner. Respondent was ordered to cease and desist from violating Sections 36a-671(b) and 36a-671b(b) of the Connecticut General Statutes, to pay a civil penalty in the amount of $500,000, and to repay fees in the amount of $2,668.74 to an identified Connecticut resident.
Dated: Tuesday, October 4, 2011
Howard F. Pitkin
Banking Commissioner