Regulatory Alerts2018-06-15
Added · Updated
Bulletin 2834 - June 15, 2018
The Connecticut Banking Commissioner revoked the mortgage broker license of REF Mortgage Capital Inc. and the mortgage loan originator license of Robert Ernest Fiala following findings that they violated Connecticut General Statutes Sections 36a-498e and 36a-53b by improperly altering loan documents. The order mandates that both entities cease and desist from further violations of these statutes. Additionally, the Commissioner imposed a civil penalty of $20,000 on REF Mortgage Capital Inc. and a separate $20,000 civil penalty on Robert Ernest Fiala.
State of Connecticut Department of Banking
The Department of Banking News Bulletin
Bulletin # 2834 - Week Ending June 15, 2018
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 business days from the date of this bulletin.
CONSUMER CREDIT DIVISION ACTIVITY
Findings of Fact, Conclusions of Law and Order
On June 11, 2018, following an administrative hearing, the Banking Commissioner issued Findings of Fact, Conclusions of Law and Order in the matter of: REF Mortgage Capital Inc. (NMLS # 1424304) (“REF”) and Robert Ernest Fiala (NMLS # 70963) (“Fiala”) (collectively, “Respondents”), Roxbury, Connecticut.
The hearing considered allegations brought by the Commissioner on August 28, 2017, through an Order of Summary Suspension, Temporary Order to Cease and Desist, Notice of Intent to Revoke Mortgage Broker License, Notice of Intent to Revoke Mortgage Loan Originator License, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing issued against Respondents (collectively, “Order and Notice”). The Order and Notice was a result of an examination by the Consumer Credit Division. The Commissioner alleged in the Order and Notice, among other things, that Respondents improperly altered loan documents in violation of Sections 36a-498e(1), 36a-498e(2), 36a-53b(1) and 36a-53b(3) of the Connecticut General Statutes, which constituted sufficient grounds to revoke REF’s mortgage broker license and Fiala’s mortgage loan originator license, and formed the basis to issue an order to cease and desist and order imposing civil penalty against each Respondent.
The hearing decision concluded that Respondents each violated Sections 36a-498e(1), 36a-498e(2), 36a-53b(1) and 36a-53b(3) of the Connecticut General Statutes and ordered that the license of REF to act as a mortgage broker in Connecticut be revoked, the license of Fiala to act as a mortgage loan originator in Connecticut be revoked, REF cease and desist from violating Sections 36a-498e(1), 36a-498e(2), 36a-53b(1) and 36a-53b(3) of the Connecticut General Statutes, Fiala cease and desist from Sections 36a-498e(1), 36a-498e(2), 36a-53b(1) and 36a-53b(3) of the Connecticut General Statutes, a civil penalty of $20,000 be imposed on REF and a civil penalty of $20,000 be imposed on Fiala.
Dated: Tuesday, June 19, 2018
Jorge L. Perez Banking Commissioner