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Trans Global Mortgage Corporation Fined $50,000,
Ordered to Pay over $100,000 in Consumer Restitution

State of New York
Banking Department


In the Matter of

TransGlobal Mortgage Corp.
A Mortgage Banker licensed pursuant to
Article 12-D of the New York State Banking Law,

(Respondent)
Stipulation of Settlement

WHEREAS, Transglobal Mortgage Corporation ("Respondent") is a Licensed Mortgage Banker in the State of New York since February 21, 1989; and

WHEREAS, review of loan files by the New York State Banking Department ("Department") in conjunction with a routine examination by the Department indicates that Respondent failed to disclose the broker fees paid by the borrower and/or return excess appraisal and credit report fees in 287 instances as required by Article 12- D of the New York State Banking Law; and

WHEREAS, Section 597 of the Banking Law requires each Licensee to keep and use in its business such books, accounts and records as will enable the Superintendent to determine whether the Licensee is complying with the provisions of Article 12-D of the Banking Law and applicable Regulations; and

WHEREAS, Respondent has been repeatedly advised of her right to legal representation, but has repeatedly declined to retain legal counsel; and 

WHEREAS, without admitting or denying the aforementioned allegations, Respondent freely and voluntarily waives its right to a hearing on any potential charges resulting from the above allegations and enters into this Stipulation of Settlement ("Stipulation") in order to resolve this matter; and

IT IS HEREBY STIPULATED AND AGREED TO, by and between the parties, that the Department’s Notice of Hearing and Statement of Charges will not be served upon Respondent seeking to revoke Respondent’s mortgage broker license and/or impose a fine. However, the Department will serve Respondent at a future date should Respondent engage in other substantive violations of law and/or regulation or violate the terms and conditions of this Stipulation; and

IT IS HEREBY FURTHER STIPULATED AND AGREED TO, by and between the parties, that Respondent shall make consumer restitution payments in the amount of $115,114.00; and

IT IS HEREBY FURTHER STIPULATED AND AGREED TO, by and between the parties, that in instances where consumers are unable to be located, or the Department, in its sole discretion, determines that a consumer is not entitled to restitution, Respondent shall disburse the proceeds of such restitution payments as directed by the Department, in its sole discretion; and

IT IS HEREBY FURTHER STIPULATED AND AGREED TO, by and between the parties, that by close of business on January 28, 2002, checks payable to the borrowers drawn on Respondent’s operating account shall be delivered to the Department at 2 Rector Street, New York, NY 10006 for mailing by the Department; and

IT IS HEREBY FURTHER STIPULATED AND AGREED TO, by and between the parties, that by close of business on January 28, 2002, Respondent shall provide the Department with mailing labels, in a form acceptable to the Department, containing the names and addresses of the consumers; and

IT IS HEREBY FURTHER STIPULATED AND AGREED TO, by and between the parties, that within five (5) days of completing the mailing of said checks, the Department shall forward an invoice to Respondent for postage costs, including the costs of envelopes, incurred by the Department in connection with said mailing and Respondent shall pay said invoice within five (5) days of receipt; and

IT IS HEREBY FURTHER STIPULATED AND AGREED TO, by and between the parties, that by close of business on January 28, 2002, Respondent shall pay a fine of $50,000.00 to the Superintendent of Banks of the State of New York. Such fine shall be paid by a certified check payable to the Superintendent of Banks.

IT IS HEREBY FURTHER STIPULATED AND AGREED TO, by and between the parties, that Respondent shall be on probationary status with the Department for the period from January 28, 2002 through December 31, 2003 thereby necessitating the Department to conduct quarterly examinations of Respondent, at Respondent’s expense, commencing on or about April 15, 2002 for the fiscal quarter ending March 31, 2002 and concluding with an examination commenced on or about by January 15, 2003 for the fiscal quarter ending December 31, 2003; and that within 30 days of the date of this Agreement, Respondent shall institute a "compliance program" approved by the Department to facilitate compliance with all applicable laws and regulations. Said quality control program shall include that all policies, procedures, disclosures and other forms used by the Respondent in its business shall be reviewed by legal counsel specializing in residential mortgage lending in New York State and that all employees having consumer contact and/or that are engaged in underwriting shall receive training, including annual updates, regarding applicable laws and regulations by said legal counsel; and

IT IS HEREBY FURTHER STIPULATED AND AGREED TO, by and between the parties, that the Department shall not be estopped by this Stipulation from pursuing any other regulatory or enforcement action against Respondent for actions or activities by Respondent not covered herein; and

IT IS HEREBY FURTHER STIPULATED AND AGREED TO, by and between the parties, that Respondent agrees to comply with all requirements of law and regulation relating to its mortgage business including but not limited to: Article 12-D of the Banking Law; Parts 38, 39 and 41 of the General Regulations of the Banking Board; and

IT IS HEREBY FURTHER STIPULATED AND AGREED TO, by and between the parties, that any party executing this Stipulation shall be bound by its terms and conditions; and

IT IS HEREBY FURTHER STIPULATED AND AGREED TO, by and between the parties, that all provisions of this Settlement Stipulation may be made a matter of public record.

Dated: January 28, 2002

New York State Banking Department
By:
_________________________
Daniel Muccia
First Deputy Superintendent
2 Rector Street
New York, NY 10006

________________________
Sharon P. Farrell, Esq.
Counsel
Dated: January 28, 2002

Respondent
By:
________________
Jennie Ng
Principal
41-25 Kissena Blvd.
Flushing, NY 11501

Dated: January 28, 2002

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