Bulletin 2654 - January 2, 2015

State of Connecticut
Department of Banking

The Department of Banking News Bulletin

Bulletin # 2654 -
Week Ending January 2, 2015

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, Department of Banking, 260 Constitution Plaza, Hartford, CT 06103-1800. Written comments will be considered only if they are received within ten days from the date of this bulletin.

STATE BANK ACTIVITY

Conversion

On December 8, 2014, the Commissioner approved the application by Putnam Bank , Putnam, Connecticut, to convert from a federally-chartered stock savings association to a capital stock Connecticut Bank pursuant to Section 36a-137 of the Connecticut General Statutes. The Connecticut bank will be known as Putnam Bank .

On December 29, 2014, the Commissioner approved the application by Savings Institute Bank and Trust Company , Willimantic, Connecticut, to convert from a federally-chartered stock savings association to a capital stock Connecticut Bank pursuant to Section 36a-137 of the Connecticut General Statutes. The Connecticut bank will be known as Savings Institute Bank and Trust Company .

Interstate Loan Production Office

On December 29, 2014,
Manufacturers and Traders Trust Company
, a New York banking corporation with its main office in Buffalo, New York, opened its loan production office at 393 State Street, North Haven, Connecticut.

Merger

On December 30, 2014, the Commissioner approved the merger of UPS Capital Business Credit NJ , a New Jersey corporation and wholly-owned subsidiary of UPS Capital Business Credit (“UPS Capital”) a Connecticut-chartered uninsured bank, with and into UPS Capital . The merger was approved pursuant to Section 36a-127 of the 2014 Supplement to the General Statutes.

CONSUMER CREDIT DIVISION ACTIVITY

Temporary Order to Cease and Desist, Order to Make Restitution, Notice of Intent to Issue Order to Cease and Desist and Notice of Intent to Impose Civil Penalty

On December 15, 2014, the Commissioner issued a Temporary Order to Cease and Desist, Order to Make Restitution (“Order to Make Restitution”), 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”) in the Matter of:
Apex Tax Resolution LLC d/b/a Apex Home Solution LLC (“Apex Home Solution”), Murrieta and Costa Mesa, California, Mayada Abdullah (“Mayada”) and Gazi M. Abdullah a/k/a Ghazi M. Abdullah (“Gazi”) (collectively “Respondents”). The Notice was the result of an investigation by the Consumer Credit Division. The Commissioner alleges that the Respondents engaged in debt negotiation in this state without obtaining the required license, in violation of Section 36a-671(b) of the Connecticut General Statutes, as amended by Public Act 14-7. As part of the Order to Make Restitution, each Respondent was ordered to repay fees to identified Connecticut residents plus interest, and to repay any other Connecticut resident who entered into an agreement for debt negotiation services with Respondents on and after October 1, 2009, any fees paid by such Connecticut resident to Respondents plus interest. The Commissioner also found that public welfare required the issuance of a Temporary Order to Cease and Desist against Respondents. Respondents were afforded an opportunity to request a hearing with regard to the allegations set forth in the Notice.

Consent Orders

On December 23, 2014, the Commissioner entered into a Consent Order with Northeast Funding Services, Inc. d/b/a N.E. Funding Service d/b/a N.E. Funding Services (NMLS # 46813) (“N.E. Funding Services”), Latham, New York. The Consent Order was based on an investigation by the Consumer Credit Division. As a result of such investigation, on November 6, 2014, the Commissioner issued a Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing against N.E. Funding Services. The Commissioner alleged that N.E. Funding Services failed to timely file certain annual information required by mortgage call reports, in violation of Section 36a-534b(c)(3) of the Connecticut General Statutes, as amended by Public Act 14-89. As part of the Consent Order, N.E. Funding Services paid $2,500 as a civil penalty.

On December 23, 2014, the Commissioner entered into a Consent Order with On Deck Mortgage Services LLC.
(NMLS # 84623) (“On Deck Mortgage”), Trumbull, Connecticut. The Consent Order was based on an investigation by the Consumer Credit Division. As a result of such investigation, on April 22, 2014, the Commissioner issued a Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing against On Deck Mortgage. The Commissioner alleged that On Deck Mortgage failed to file certain annual information required by mortgage call reports, in violation of Section 36a-534b(c)(3) of the Connecticut General Statutes and in violation of an order of the Commissioner. The Commissioner further alleged that On Deck Mortgage failed to maintain the tangible net worth required of mortgage broker licensees, pursuant to Sections 36a-488(a) and 36a-489(a) of the Connecticut General Statutes. As part of the Consent Order, On Deck Mortgage paid $2,500 as a civil penalty.

Dated: Tuesday, January 6, 2015

Howard F. Pitkin
Banking Commissioner