News Bulletin 2409 - April 23, 2010

State of Connecticut
Department of Banking

The Department of Banking News Bulletin
Bulletin # 2409
Week Ending April 23, 2010

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

CONSUMER CREDIT DIVISION ACTIVITY
Check Cashing Service License Activity

Date

Check Casher

Location

Activity

4/19/10

Johnson Sohan

1726 Fairfield Avenue

Bridgeport, CT 06605

filed

Notice of Automatic Suspension, Temporary Order to Cease and Desist, Notice of Intent to Revoke and Refuse to Renew Mortgage Correspondent Lender License, Notice of Intent to Issue Order to Cease and Desist

On April 7, 2010, the Commissioner issued a Notice of Automatic Suspension, Temporary Order to Cease and Desist, Notice of Intent to Revoke and Refuse to Renew Mortgage Correspondent Lender License, Notice of Intent to Issue Order to Cease and Desist and Notice of Right to Hearing (“Notice”) in the Matter of:
Millenium Mortgage Company
(“Respondent”). The Notice alleged that Respondent failed to maintain a surety bond that ran concurrent with its license for 219 Kent Road, Suite 17, New Milford, Connecticut, in violation of Section 36a-492 of the 2010 Supplement to the General Statutes. The Commissioner also found that public welfare required the issuance of a Temporary Order to Cease and Desist. Respondent was afforded an opportunity to request a hearing with regard to the allegations set forth in the Notice. A copy of the Notice can be obtained from the Department’s website, www.ct.gov/dob .

Settlement Agreement

On April 7, 2010, the Commissioner entered into a Settlement Agreement with Prospect Mortgage Company, LLC (“Prospect Mortgage”). The Settlement Agreement was based on an examination by the Consumer Credit Division of Metrocities Mortgage, LLC (“Metrocities Mortgage”). As a result of such examination, the Commissioner alleged that Metrocities Mortgage employed or retained, during the period of November 9, 2005 through May 9, 2008, at least 23 individuals as originators without registering them, in violation of Sections 36a-486(b) and 36a-511(b) of the then applicable Connecticut General Statutes, and engaged in the business of making mortgage loans at a location without first having obtained a mortgage lender license for such location in violation of Section 36a-490(a) of the then applicable Connecticut General Statutes. Metrocities Mortgage changed its legal name to Prospect Mortgage on April 1, 2009. As part of the Settlement Agreement, Prospect Mortgage paid a civil penalty in the amount of $33,000. A copy of the Settlement Agreement can be obtained from the www.ct.gov/dob .

Dated: Tuesday, April 27, 2010

Howard F. Pitkin

Banking Commissioner