Bulletin 2707 - January 8, 2016

State of Connecticut
Department of Banking

The Department of Banking News Bulletin

Bulletin # 2707 -
Week Ending January 8, 2016

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 Jorge L. Perez, 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.

CONSUMER CREDIT DIVISION ACTIVITY

Consent Orders

On December 30, 2015, the Commissioner entered into a Consent Order with HOVG, LLC d/b/a Bay Area Credit Service, LLC (“Respondent”), Norcross, Georgia, and Maharashtra, India. The Consent Order was based on an investigation by the Consumer Credit Division. As a result of such investigation, on February 11, 2014, the Commissioner issued an Order to Make Restitution, Notice of Intent to Revoke and Refuse to Renew Consumer Collection Agency Licenses, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing against Respondent. The Commissioner alleged that Respondent acted as a consumer collection agency from an unlicensed location, added interest to a Connecticut debtor’s balance when such debtor was not contractually liable for such interest, failed to remit funds to its clients within statutorily proscribed time periods, and failed to have sufficient funds in its client trust accounts. As part of the Consent Order, Respondent was ordered to cease and desist from acting as a consumer collection agency from any unlicensed location, cease and desist from adding interest to Connecticut consumer debtors’ balances when such debtors are not contractually liable for such interest, cease and desist from failing to remit funds to its clients longer than statutorily proscribed limits, and cease and desist from failing to have sufficient funds in its client trust accounts. Respondent was also ordered to submit, quarterly for a period of two years, certifications prepared by an independent certified public accountant certifying that at all relevant times Respondent’s trust account into which collections from Connecticut consumer debtors have been deposited have had adequate funds to cover all checks written on such accounts. Finally, Respondent was ordered to pay $30,000 as civil penalty.

On December 31, 2015, the Commissioner entered into a Consent Order with American Federal Mortgage Corporation (“American Federal Mortgage”) (NMLS # 2756), Chester, New Jersey. The Commissioner alleged that American Federal Mortgage changed the address of its main office specified on its most recent filing with the Nationwide Mortgage Licensing System and Registry (“NMLS”) and failed to file such change with NMLS at least 30 calendar days prior to such change and, in connection with such address change, failed to provide, directly to the Commissioner, a bond rider or endorsement, or addendum, as applicable, to the surety bond on file with the Commissioner that reflects the address of the main office, in violation of Section 36a-490(b) of the Connecticut General Statutes. As part of the Consent Order, American Federal Mortgage paid $500 as a civil penalty.

On December 31, 2015, the Commissioner entered into a Consent Order with Atlantic Home Capital, Corp. d/b/a Atlantic Funding (“Atlantic Funding”) (NMLS # 144314), Farmingville, New York. The Commissioner alleged that Atlantic Funding changed the address of its main office specified on its most recent filing with the Nationwide Mortgage Licensing System and Registry (“NMLS”) and failed to file such change with NMLS at least 30 calendar days prior to such change and, in connection with such address change, failed to provide, directly to the Commissioner, a bond rider or endorsement, or addendum, as applicable, to the surety bond on file with the Commissioner that reflects the address of the main office, in violation of Section 36a-490(b) of the Connecticut General Statutes. As part of the Consent Order, Atlantic Funding paid $500 as a civil penalty.

On December 31, 2015, the Commissioner entered into a Consent Order with Montage Mortgage, LLC (“Montage Mortgage”) (NMLS # 762069), Heath, Texas. The Commissioner alleged that Montage Mortgage changed the address of its main office specified on its most recent filing with the Nationwide Mortgage Licensing System and Registry (“NMLS”) and failed to file such change with NMLS at least 30 calendar days prior to such change and, in connection with such address change, failed to provide, directly to the Commissioner, a bond rider or endorsement, or addendum, as applicable, to the surety bond on file with the Commissioner that reflects the address of the main office, in violation of Section 36a 490(b) of the Connecticut General Statutes. As part of the Consent Order, Montage Mortgage paid $500 as a civil penalty.

On December 31, 2015, the Commissioner entered into a Consent Order with Summit Funding, Inc. d/b/a Summit Funding Inc. Your Mortgage Professionals (NMLS #84943) (“Summit Funding”), Flushing, New York. The Consent Order was based on an investigation by the Consumer Credit Division. As a result of such investigation, on August 21, 2015, 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 Summit Funding. The Commissioner alleged that Summit Funding failed to timely file certain quarterly 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. As part of the Consent Order, Summit Funding paid $2,500 as a civil penalty.

Dated: Tuesday, January 12, 2016

Jorge L. Perez
Banking Commissioner