Bulletin 3141 - May 3, 2024

State of Connecticut
Department of Banking

The Department of Banking News Bulletin

Bulletin # 3141 - Week Ending May 3, 2024

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

Uninsured Bank Name Change

On April 22, 2024,
Currency Reserve Bank
, which has received a temporary certificate of authority to organize as a Connecticut uninsured bank, received approval pursuant to Section 36a-70(k) of the Connecticut General Statutes to change its name to Numisma Bank .

CREDIT UNION ACTIVITY

Branch Activity

DATE:
April 4, 2024

CREDIT UNION:
Nutmeg State Financial Credit Union, Rocky Hill

LOCATION:
117 Washington Avenue, North Haven, CT 06473

ACTIVITY-BRANCH TYPE:
Branch Closing

PROPOSED CLOSING DATE
: May 17, 2024

CONSUMER CREDIT ACTIVITY

Order Revoking Mortgage Lender Licenses and Order to Cease and Desist

On April 24, 2024, the Commissioner issued an
Order Revoking Mortgage Lender Licenses and Order to Cease and Desist (“Order”) in the matter of:
Guaranty Home Mortgage Corporation
(NMLS # 135462) (“Respondent”), Nashville, Tennessee and Cumming, Georgia. The basis of the Order was that the Respondent failed to maintain a surety bond that runs concurrently with the period of its mortgage lender licenses, which constitutes sufficient grounds for the Commissioner to deny an application for such license under Section 36a-489(a) of the Connecticut General Statutes and constitutes sufficient grounds for the Commissioner to revoke Respondent’s licenses to engage in the business of a mortgage lender in Connecticut from its main office and branch office locations pursuant to Section 36a 492(c) of the 2024 Supplement to the General Statutes, Sections 36a 494(a)(1) and 36a 494(a)(1)(C) of the Connecticut General Statutes and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, and forms a basis to issue an order to cease and desist pursuant to Sections 36a-494(b) and 36a-52(a) of the Connecticut General Statutes. The Order revokes Respondent’s licenses to engage in the business of a mortgage lender in Connecticut from 3200 Park Drive, Suite 110, Nashville, Tennessee, and from 102 Mary Alice Park Road, Suite 504, Cumming, Georgia.

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

On April 26, 2024, the Commissioner issued a
Temporary Order to Cease and Desist, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (“Order and Notice”) In the matter of:
COMPATTIA ROCCIA MANAGEMENT GROUP, LLC a/k/a CRMG (NMLS # 2292547) (“Respondent”), Tonawanda, New York. The Order and Notice was the result of an investigation by the Consumer Credit Division. The Commissioner alleges in the Order and Notice that: (1) Respondent’s acting within this state as a consumer collection agency without a consumer collection agency license constitutes violations of Section 36a 801(a) of the Connecticut General Statutes in effect at such time, which form the basis to issue an order to cease and desist pursuant to Sections 36a-804(b) and 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty pursuant to Sections 36a-804(b) and 36a-50(a) of the Connecticut General Statutes; (2) Respondent failed to provide information requested during the investigation or otherwise cooperate with the Commissioner, in violation of Section 36a-17(e) of the Connecticut General Statutes, which forms the basis to issue an order to cease and desist pursuant to Sections 36a-570(b) and 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty pursuant to Sections 36a-570(b) and 36a-50(a) of the Connecticut General Statutes; and (3) Respondent failed to establish a system for supervision and compliance under Section 36a 805(a)(15) of the Connecticut General Statutes which forms the basis to issue an order to cease and desist against Respondent pursuant to Sections 36a-804(b) and 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty upon Respondent pursuant to Sections 36a-804(b) and 36a-50(a) of the Connecticut General Statutes. Respondent was afforded an opportunity to request a hearing with regard to the allegations set forth in the Notice.

Consent Order

On April 29, 2024, the Commissioner entered into a Consent Order with Central Mortgage Funding, LLC d/b/a Supreme Team Lending (NMLS # 1699966) (“Central Mortgage Funding”), Southfield, Michigan. The Consent Order was based on an examination by the Consumer Credit Division. As a result of such examination, the Commissioner alleged that from at least March 28, 2022 through January 30, 2024, Central Mortgage Funding: (1) engaged the services of seven individuals to act as mortgage loan originators in Connecticut who were not licensed, in violation of Section 36a-486(b)(1) of the Connecticut General Statutes in effect at such time; (2) engaged in the business of a mortgage lender in Connecticut without a license, in violation of Section 36a-486(a) of the Connecticut General Statutes in effect at such time; (3) engaged in the business of a mortgage lender from an unlicensed location, in violation of Section 36a-486(a) of the Connecticut General Statutes in effect at such time; (4) failed to maintain records of mortgage loan transactions, in violation of Section 36a-493(a) of the Connecticut General Statutes and 12 CFR Section 1002.12(b) of Regulation B; (5) failed to properly disclose mortgage loan terms and document changes of circumstances, in violation of Section 36a-678(a) of the Connecticut General Statutes and paragraphs (e) and (f) of 12 CFR Section 1026.19 of Regulation Z; (6) failed to provide Connecticut applicants the notices required by 12 CFR Section 1002.9(a) of Regulation B; and (7) failed to establish, enforce and maintain policies and procedures reasonably designed to achieve compliance with Section 36a-498e(a) of the Connecticut General Statutes in effect at such time, in violation of Section 36a-498e(b)(1) of the Connecticut General Statutes in effect at such time. As part of the Consent Order, among other items, Central Mortgage Funding paid $75,000 as a civil penalty and $4,100 as payment for back licensing fees.

Dated: Tuesday, May 7, 2024

Jorge L. Perez
Banking Commissioner