Bulletin 2972 - February 5, 2021

State of Connecticut
Department of Banking

The Department of Banking News Bulletin

Bulletin # 2972 - Week Ending February 5, 2021

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.

STATE BANK ACTIVITY

Reorganization into a Mutual Holding Company
On February 2, 2021, pursuant to Sections 36a-192 and 36a-193 of the Connecticut General Statutes, the Commissioner issued notice of his intent not to disapprove the formation by The Savings Bank of Danbury (the “Mutual Bank”) of a mutual holding company to be known as SBD Bancorp, Inc. , approved an application to form a reorganized savings institution to be known as The Savings Bank of Danbury II (the “Stock Bank”), and approved the merger of the Mutual Bank with and into the Stock Bank, the resulting bank to be known as The Savings Bank of Danbury . CONSUMER CREDIT DIVISION ACTIVITY

Consent Orders

On January 25, 2021, the Commissioner entered into a Consent Order with Cliffco, Inc. d/b/a Cliffco Mortgage Bankers, Inc. (NMLS # 65328) (“Cliffco”), Uniondale, New York. The Consent Order was based on an investigation by the Consumer Credit Division. As a result of such investigation, the Commissioner alleged that Cliffco failed to file with the Nationwide Multistate Licensing System and Registry a change of address of its main office at least thirty (30) calendar days prior to such change and, in connection with such address change, failed to provide a bond rider or endorsement, or addendum, as applicable, to the surety bond on file with the Commissioner, in violation of Section 36a-490(b)(2) of the Connecticut General Statutes. As part of the Consent Order, Cliffco paid $500 as a civil penalty.

On January 29, 2021, the Commissioner entered into a Consent Order with Midwest Recovery Systems, LLC , NMLS # 1587525, Earth City, Missouri (“Midwest Recovery”). The Consent Order was based on an investigation by the Consumer Credit Division. As a result of such investigation, on February 6, 2020, 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 Midwest Recovery (“Notice”). The Commissioner alleged in the Notice that Midwest Recovery’s acting within this state as a consumer collection agency without a consumer collection agency license constitutes a violation of Section 36a-801(a) of the Connecticut General Statutes, in effect at such time, and that Midwest Recovery’s collecting or receiving payments of principal and interest on at least one small loan made by a person who had not obtained a small loan license constitutes a violation of Section 36a-573(a) of the Connecticut General Statutes, in effect prior to July 1, 2016, and subdivisions (4) and (5) of Section 36a-556(a) of the Connecticut General Statutes, in effect at such time. As part of the Consent Order, Midwest Recovery is permanently banned from acting as a consumer collection agency in Connecticut, and individuals Brandon Tumber (NMLS # 1651550), Kenny Conway (NMLS # 1633174), and Joseph Smith (NMLS # 1633176) are banned for a period of five (5) years from acting as a director, manager, owner, supervisor, control person or qualified individual of any entity acting directly as a consumer collection agency in Connecticut, or acting indirectly in such capacity through a third-party entity, or being involved, directly or indirectly, in the collection of any consumer debt in Connecticut.

Dated: Tuesday, February 9, 2021

Jorge L. Perez
Banking Commissioner